Buying a Home...Guide

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Buying a Home as a New Immigrant in Canada (2026)

Buying a home as a new immigrant in Canada is possible — even with no Canadian credit history and limited Canadian work history. Multiple lenders have programs designed for this exact situation. This guide covers the pathway for South Asian immigrants arriving from India, Pakistan, Sri Lanka, Nepal, and Bhutan who want to buy in Toronto, Vancouver, Calgary, or elsewhere in Canada.

3 Sections

4 FAQs

Verified 2026

Section 1

New to Canada mortgage programs: what's available

All five major Canadian banks offer "New to Canada" mortgage programs. The specific requirements differ, but the common structure is:

- 5% minimum down payment (same as for established residents) - Accept foreign credit bureau report (CIBIL from India, credit report from Pakistan, etc.) in lieu of Canadian credit history - Require 3-6 months of Canadian employment before mortgage application - Require proof of landed immigrant or work permit status

ICICI Bank Canada deserves special mention: founded to serve NRI and South Asian communities, they understand Indian banking history and employment patterns and have the most South Asian immigrants going through their process. Their mortgage specialists speak Hindi, Punjabi, and Gujarati.

For recently arrived PR holders (less than 5 years in Canada): CMHC (the federal mortgage insurer) has explicit New to Canada program parameters. An insured mortgage (under 20% down) is available to new immigrants with proper documentation.

Section 2

Foreign income and down payment sourcing

If you're using funds from India, Pakistan, or elsewhere for a down payment in Canada, the mortgage lender and CMHC require a "gift letter" and proof of funds transfer. The process:

1. Funds must be in your Canadian bank account for 90 days before closing (seasoned funds requirement for most lenders) 2. You need a bank statement showing the transfer from the foreign account and the deposit to your Canadian account 3. A signed gift letter (if the money is a gift from parents) confirming no repayment is required

For income earned abroad before landing in Canada: some lenders will include foreign employment income in qualifying calculations, provided you have documentation (pay stubs, Form 16 from India, employer letters). A mortgage broker who works with South Asian immigrants will know which lenders are most flexible on this.

Section 3

The foreign buyer ban and who it affects

Canada implemented a ban on foreign nationals buying residential property in 2023, with extensions and modifications since. However, this ban has significant exceptions:

- Permanent residents are NOT subject to the foreign buyer ban — you can buy as a PR holder - Work permit holders working in Canada are generally exempt if they meet specific criteria - International students and those without Canadian work authorization may be affected

If you arrived on a work permit (not yet PR), confirm your exemption status with your real estate lawyer before proceeding. The rules have changed multiple times and a real estate lawyer or mortgage broker who works with immigrants will have current guidance.

Run the numbers.

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Mortgage Calculator

Canadian amortization · New-to-Canada mortgage programs included

Home Price

⚡ CMHC insurance applies (under 20% down)

Down Payment — 10% · $90,000

Min 7.5%50%

Interest Rate — 5.50%

1%12%

Amortization — 25 years

5 yrs30 yrs

Monthly

$4,974

Total Interest

$682,233

Loan Amount

$810,000

CMHC insurance premium (~2.8% of loan) will be added to your mortgage. New-to-Canada programs from RBC, ICICI, and Scotiabank accept foreign credit history.

Estimates only — consult a licensed Canadian mortgage broker for exact figures

Frequently Asked Questions

Q
How soon after arriving in Canada can I get a mortgage?

Most lenders require 3-6 months of Canadian employment and some Canadian banking history. Practically, you can begin the mortgage process around month 4-6. Some specialized lenders and mortgage brokers can work with shorter timelines for well-qualified applicants.

Q
Can I use my Indian credit score (CIBIL) for a Canadian mortgage?

Yes — the major Canadian banks' New to Canada programs accept foreign credit bureau reports including CIBIL. You'll need to request an international credit report through TransUnion or Equifax's international credit transfer process. Your mortgage broker will tell you exactly what format is needed.

Q
What is the First Home Savings Account (FHSA) and can new immigrants use it?

The FHSA is a registered account that allows first-time homebuyers to save up to $40,000 tax-free ($8,000/year) for a home purchase. It's available to Canadian tax residents — which includes permanent residents and work permit holders. Open one immediately upon arriving in Canada to start accumulating contribution room.

Q
Should I buy in Toronto or Vancouver vs a smaller city?

Toronto and Vancouver are the most expensive markets in Canada but also have the largest South Asian communities and most employment opportunities. If home affordability is the priority, consider Hamilton, Kitchener-Waterloo, Calgary, or Edmonton — all have growing South Asian communities and lower prices. Remote work has made these markets increasingly viable.