New To Canada

New to Canada? You May Still Qualify for a Mortgage

Many people think they need years of credit history in Canada to buy a home. That’s not
always true.

There are New to Canada mortgage programs that allow newcomers to purchase a home much
sooner than they expect as long as it’s within the first 5 years of arriving in Canada.

Here are some common qualification options:

Minimum Down Payment
You may be able to purchase with as little as 5% down on purchases with 1-2 units. 10% down
on purchases with 3-4 units (max 4 and one unit must be owner occupied).

Limited Canadian Credit History Impacts the Down Payment

Some lenders will accept international credit reports or alternative credit if you do not have any.
Examples are 12 months showing rent payments, utilities, car insurance or any other consistent
payment history.

For 5% down you must have a Canadian or International credit report showing credit history OR
12 months verifiable bank statements from a recognized Canadian Financial Institution or from
Financial Institution in the Country of origin. AND
Either a letter of reference from the borrowers financial institution in their country of origin
confirming 6 months satisfactory banking relationship OR rental payment history confirmed via
letter from the landlord and supported by 12 months bank statements AND at least one utility
payment confirmed via letter by service provider or 12 months bill statement confirming regular
payments.

If that doesn’t fit you are looking at 10% down

Need a Canadian or international credit report
A letter of reference from the borrower’s financial institution in their country of origin
confirming a minimum 6 months satisfactory banking relationship OR 6 months verifiable
Canadian Financial institution or from a financial institution in the country of origin.
All letters MUST be in English or French.

Employment in Canada
Typically lenders want to see full-time employment or a signed job offer with at least three
months history.

Proof of Funds
You’ll need to show your down payment and closing costs have been saved or transferred
legally into Canada. We require 90 day history. If funds are gifted we will need to get a gift letter
and possible history of that money.

Residency Status
Many programs work for:
✔ Permanent Residents
✔ Work Permit holders (At least 186 days left before expiry)

If you’re new to Canada and thinking about buying a home in PEI, there may be more options
than you realize.