New To Canada Mortgage Programs – Updated 2024

New To Canada Mortgage Programs are available to applicants who have immigrated to Canada within the last 60 months.

All three of Canada’s Mortgage Insurers (CMHC, Genworth & Canada Guarantee) all have insured options.  An insured mortgage is one where the borrowers have less than 20% down.   Banks and Credit Unions have a few conventional options for borrowers who have between 20%-35% down.

Insured Options: Permanent Residents Or Temporary Residents

• Must have immigrated or relocated to Canada within the last 60 months.
• Must have a valid work permit or obtained permanent residency.
• All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS / TDS calculation).
• Guarantors are not permitted.
• Foreign Diplomats or any other foreign politically appointed individuals who do not pay income tax in Canada are ineligible for this program.
• Clergy assigned to a specific church requires only a visitor record.
• A down payment grant provided under a mortgage insurer-approved Affordable Housing Program may be used as a down payment at 95% LTV (the borrower is not required to have a 5% down payment from their resources).

5%-19.99% Down

•  5% down payment from borrowers’ resources via 90-day confirmed bank statements or gifted from an immediate relative (i.e. parent, sibling, grandparent, legal guardian, legal dependent, or spouse).  The down payment should be in Canada for the entire 90 days and in liquid and easily accessible cash.   Some exceptions can be made, however, it is a much more comfortable experience if the money can be in a Canadian Bank account for a minimum of 90 days.
• Borrowers need to be permanently employed full-time for a minimum of 3 months.   This means that each borrower will be required to provide an employment letter from their employer confirming their Start Date, Position, Wage Or Salary, and the Guaranteed Hour Per Week Worked.  Two Paystubs will also be required to ensure that both the full hours are being worked and that the year-to-date hours and pay align with the employment letter.
• 90.01-95% LTV: — US or UK International to have a credit bureau demonstrating a strong credit profile OR: — 2 alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months (from a Canadian source). The two alternative sources required are: • Rental payment history confirmed via a letter from the landlord with supporting bank statements and • Hydro/utilities, telephone, cable, cell phone, and auto insurance to be confirmed via a letter from a service provider or 12 months of billing statements.  12 months of bank statements can also be used to demonstrate recurring monthly payments.
•  Up to 90% LTV: — 6 months bank statements from a recognized financial institution for borrowers’ primary account OR — A letter of reference from the borrower’s recognized financial institution

Conventional Options: Permanent Residents (PR)

Each application must be supported by a sound business case for approval consideration and at a minimum must detail the following:

20% Down:

•  Full financial picture.
•  Saving habits and debt load. Is it consistent with their normal personal or business circumstances? Source and reasonability of both the down payment and Liquid Assets
•  Reasonability check: Regardless of the down payment amount, a reasonable explanation must be provided as to how the funds were accumulated.
• All foreign obligations must be disclosed.

35% Down:

Equity Offset Program

• The Equity Offset program will allow a customer to qualify for a greater mortgage amount by providing a minimum of 12 months’ worth of Principal, Interest, Taxes, and Heating (PITH) in liquid assets, in addition to their down payment.  The typical customer for the Equity Offset program may be in the process of retraining or completing their education in their specified field. The customer may be currently earning less income than expected for a professional in their field of work.

High Net Worth Program

• The High Net Worth (HNW) program will allow a customer to qualify for a greater mortgage amount by verifying the customer’s liquid asset holdings in an amount equivalent to the mortgage requested. In addition to the customer’s down payment, a minimum amount of $250,000 in liquid assets on deposit in Canada is required to qualify for this program. The typical customer for the HNW program is someone with significant asset accumulation and may not be employed traditionally. Their income may be coming from their assets alone.

Future Income Program

• Must have PR – Permanent Residency
• Minimum credit score of 680
• Maximum mortgage amount $2.5million (joint borrowers)
• Maximum mortgage amount $1.75million (single borrower)
• Maximum 2 properties under the future income program
• 30-year amortization permitted
• Future income and Net Worth requirements will need to be demonstrated (Chequing/Savings Account, GIC, TFSA, Mutual Funds, Stocks, Bonds, ETF)