In Quebec, many newcomers — permanent residents, temporary foreign workers, international students transitioning to PR — discover that the Canadian mortgage system isn’t like the one back home. Not worse, not better. Different. And the early rejections often happen because the file is presented at the wrong place, not because the file is weak.
This guide explains the specific newcomer programs in Canada, realistic down-payment thresholds, and how to build a file that gets through the first time.
Canadian status: what it changes
Canadian lenders generally classify buyers in three categories:
- Canadian citizen or PR with ≥ 3 years in Canada → all standard mortgage programs are open.
- PR with < 3 years in Canada → access through dedicated Newcomer programs (A and B lenders).
- Temporary foreign worker / work permit → access is more restricted, generally with a higher down payment and a smaller pool of lenders.
If you’re in category 2 or 3, the right lender isn’t necessarily your current bank. That’s where an AMF broker is useful: they know which programs exist at which lender, and which ones accept your status.
No Canadian credit history: what lenders accept
Many newcomers have an excellent payment record back home but nothing at Canadian Equifax/TransUnion. That’s a fixable problem. Alternative proof typically accepted:
- Reference letter from a foreign bank (translated to English or French if possible).
- 12 months of bank statements from the country of origin.
- 12 months of rent payments in Canada.
- Utility bills paid on time: electricity, internet, Canadian phone.
- Canadian employer letter confirming employment and salary.
Newcomer-friendly lenders are designed to handle that profile. They don’t penalize lack of Canadian history. But the file has to be submitted to them — your generalist branch advisor won’t do it spontaneously.
Down payment: the actual thresholds
In Canada, the minimum down payment for a primary residence is 5% on the first $500,000, then 10% between $500,000 and $1,500,000. Above $1.5M, 20% minimum on the whole amount.
For a newcomer in a Newcomer program, several lenders require:
- 5% if PR confirmed + stable Canadian income (3 months minimum).
- 10% to 20% if PR is recent (< 12 months) or Canadian income too fresh.
- 20% minimum, sometimes 35%, for work permit holders without PR.
Those are maximum acceptable thresholds, not guaranteed. The final file depends on the combination of status + employment + ratios + assets.
The « shop several banks » trap
One of the costliest mistakes: applying to several banks in parallel without coordination. Each bank pulls your Canadian credit, which temporarily lowers your score and signals badly to subsequent lenders.
An AMF mortgage broker works differently: one credit pull, then presented to several lenders without new pulls. That’s technically and legally permitted in the Canadian mortgage brokerage framework.
First-Time Home Buyer programs — current versions
In Canada, several programs can stack for a newcomer buying their first primary residence:
- Home Buyers’ Plan (HBP): withdraw up to $60,000 from an RRSP (since 2024), repaid over 15 years.
- FHSA (First Home Savings Account): save up to $40,000 lifetime for a first purchase, with tax deduction.
- Federal First-Time Home Buyer tax credit (up to $1,500 refunded federally).
- Accès Famille program by the City of Montreal (varies by borough and criteria).
Combined, those levers can mean thousands of dollars of difference in the first year. An AMF broker plus an accountant familiar with newcomers can help stack them properly.
Document checklist
For a useful first call with a broker:
- Canadian status: PR card, COPR, or valid work permit.
- Passport and visa (current).
- 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 asset abroad, family gift with letter).
- CRA NoA if you’ve filed in Canada.
The family gift deserves a note: if part of the down payment comes from a family member (parents, sibling), a signed gift letter is required by Canadian lenders. The broker provides the template.
What Courteo does
Many newcomers reach us after one or two rejections at a bank branch. Most of the time, it’s a program problem (wrong lender), not a file problem.
You fill in a form in French or English. We connect you with an AMF-licensed broker who knows Canadian Newcomer programs and speaks to your situation — PR, work permit, or in transition. They look at what’s possible before anything is submitted that could leave a negative trace on your credit file.