In Quebec, many newcomers — permanent residents, temporary foreign workers, international students transitioning to PR status — discover that the Canadian mortgage system works differently from the one back home. Not worse, not better. Different. And the early rejections often happen because the file is presented to the wrong lender, not because the file itself is weak.
This guide explains the specific newcomer programs in Canada, realistic down payment thresholds by status, and how to build a file that gets through the first time.
Canadian status: what it changes concretely
Canadian lenders generally classify buyers into three categories:
Category 1 — Canadian citizen or PR with ≥ 3 years in Canada: all standard mortgage programs are accessible, same conditions as any Canadian buyer.
Category 2 — PR with < 3 years in Canada: access through dedicated Newcomer programs (available at multiple A-tier banks and alternative lenders). Conditions are slightly different, but homeownership is entirely accessible.
Category 3 — Temporary foreign worker / work permit: more restricted access — typically with a higher down payment and a smaller pool of lenders. Still achievable for long-duration open work permits or LMIA-backed permits.
If you're in Category 2 or 3, the right lender is not necessarily your current bank. That's where an AMF-licensed mortgage broker is valuable: they know which programs exist at which lender, and which ones accept your specific immigration status.
No Canadian credit history: what lenders accept
Many newcomers have an excellent payment record back home but nothing in the Canadian Equifax or TransUnion systems. Newcomer programs are specifically designed for this situation.
What can be presented as alternative proof:
- Reference letter from a foreign bank (ideally translated to English or French).
- Bank statements for the past 12 months from the country of origin.
- 12 months of rent payment records in Canada.
- Utility bills paid on time: electricity, internet, Canadian phone.
- Canadian employer letter confirming employment, salary, and start date.
Newcomer-friendly lenders process this type of file regularly. They don't penalize the absence of Canadian history. But the file has to be submitted to them — a generalist branch advisor won't do it spontaneously.
Down payment thresholds by immigration status
In Canada, the minimum down payment for a primary residence is 5% on the first $500,000, then 10% on the portion between $500,000 and $1,500,000. Above $1.5M, 20% minimum on the full amount.
For newcomers, the requirements vary by status:
| Status | Typical minimum down payment | Note |
|---|---|---|
| PR ≥ 3 years in Canada | 5% | Standard programs accessible |
| PR < 3 years, stable Canadian income | 5-10% | Newcomer program required |
| PR < 12 months or very recent income | 10-20% | Specialized Newcomer lender |
| Work permit, stable employment | 20-35% | Options limited but available |
These thresholds are maximums accepted by certain lenders, not guarantees. The final file depends on the combination of status + employment + income + ratios + assets.
Building a Canadian credit history quickly
If purchase is 12-24 months away, here is the action plan to build a solid credit file:
Months 1-3:
- Open a primary Canadian bank account.
- Apply for a secured credit card (the bank takes a deposit, gives you the card).
- Pay all recurring bills (phone, internet, electricity) through this card.
Months 4-12:
- Pay the full balance every month — no interest charges ever.
- Keep the utilization ratio below 30% of the card limit.
- Do not open multiple credit accounts simultaneously.
At 12 months:
- You have a functional credit score (600-650).
- Most Newcomer programs are accessible.
- A broker can now submit your file to multiple lenders in parallel.
The multiple-bank application trap
One of the costliest mistakes: approaching several banks in parallel without a broker. Each bank pulls your Canadian credit file, which temporarily lowers your score and signals risk to subsequent lenders.
An AMF mortgage broker works differently: one single credit pull, then presented to multiple lenders without further inquiries. This is technically and legally permitted within the Canadian mortgage brokerage framework. For newcomers whose score is still being built, not wasting it on multiple inquiries is particularly important.
First-home buyer programs available to newcomers
Several programs can stack depending on your situation:
FHSA (First Home Savings Account): accessible as soon as you have resident status in Canada. Contribute up to $8,000/year (cumulative cap $40,000), with a tax deduction, and withdraw tax-free for a first purchase. No mandatory repayment.
HBP (Home Buyers' Plan): withdraw up to $60,000 from an RRSP (since 2024), repayable over 15 years. Accessible if you've contributed to a Canadian RRSP for at least 90 days.
Federal First-Time Home Buyer tax credit: up to $1,500 refunded federally if it's your first property in Canada.
City of Montreal Accès Famille program: interest-free loan for households under certain income thresholds. Varies by borough and annual criteria.
Document checklist for the first broker call
- Canadian status: PR card, COPR, or valid work permit.
- Passport and visa (currently valid).
- Recent employment letter + last 3 pay stubs + T4 if a full year is complete.
- Bank statements: 3-6 months Canadian + 12 months foreign if relevant.
- Source of down payment documented (savings, sale of an asset abroad, family gift with gift letter).
- CRA Notice of Assessment if you've filed in Canada.
The family gift deserves a specific mention: if part of your down payment comes from a family member, a signed gift letter is required by Canadian lenders. The broker provides the standardized template.
What Courteo does
Many newcomers reach us after one or two rejections at a bank branch. In most cases, it's a program problem (wrong lender) — not a file problem.
We connect you with an AMF-licensed mortgage broker who knows Canadian Newcomer programs and understands your situation — PR, work permit, or in transition. They look at what's possible before anything is submitted that could leave an unfavorable trace on your credit file.
Frequently asked questions: newcomer mortgage in Quebec
Can I get a mortgage on a work permit (no permanent residency)?
Yes, but conditions are stricter. Most lenders require a work permit valid for at least 12 additional months at the date of application, confirmed employment in Canada, and a down payment of 20-35%. Open work permits (LMIA positive, spouse of citizen) have more options than closed permits.
Does my foreign credit history count in Canada?
Not directly — Equifax and TransUnion Canada don't read foreign credit bureaus. But a letter from your foreign bank, your account statements, and your payment history abroad can be presented as alternative proof under Newcomer programs.
Can we buy together if one partner is a PR and the other is on a work permit?
Yes. The lender looks at the score and status of both co-borrowers. Generally, the PR partner can carry the mortgage file while the work permit partner is on the title. Each lender handles this configuration differently — an AMF broker knows which lenders are most flexible.
How soon after arriving can we start a mortgage application?
Technically the next day, if status and income conditions are met. In practice, most brokers recommend waiting 3-6 months of Canadian employment for the income proof to be sufficient. The FHSA can be opened immediately upon arrival to start accumulating contribution room.