New Immigrant Mortgage in Montreal
Permanent residents, work permit holders, and recent immigrants: how to obtain a mortgage in Canada without a long Canadian credit history.
Buying Property in Canada as a Newcomer
Montreal is one of the most accessible cities in Canada for newcomers looking to purchase property. Prices are lower than Toronto and Vancouver, and several specific programs facilitate homeownership for recent immigrants. However, mortgage qualification has important particularities that this guide details.
Anthony King, AMF-certified mortgage broker in Montreal, offers fully bilingual service (French and English) and understands the specific challenges newcomers face: no Canadian credit history, international documents, differences between banking systems. With access to 14 lenders, he can identify programs suited to your situation.
Permanent Resident vs Work Permit: Qualification Differences
Your immigration status directly influences your mortgage conditions. Here are the main distinctions:
| Status | Minimum Down Payment | Special Conditions |
|---|---|---|
| Permanent Resident (PR) | 5% (same as Canadian citizen) | Valid PR card. Same conditions as citizens. Full access to first-time buyer programs. |
| Work Permit (closed/employer-specific) | 5% to 10% depending on lender | Work permit valid for the mortgage term duration. Active Canadian employment. Some lenders require minimum 3 months tenure. |
| Work Permit (open) | 10% to 20% depending on lender | More restrictive conditions. Must demonstrate stable employment. Some A-lenders do not accept open permits. |
| Non-Resident | 35% minimum | Conventional mortgage only. No CMHC insurance. Verified income sources. |
CMHC New-to-Canada Program
CMHC offers a specific program for newcomers: the New to Canada homeownership program. This program allows a 5% down payment even without a traditional Canadian credit history.
To qualify, you must: be a permanent resident or holder of a valid work permit, have confirmed Canadian employment, and demonstrate an alternative credit source (international credit history, documented rent payments, utility bills).
Anthony King has access to all programs from the three insurers (CMHC, Sagen, and Canada Guaranty) and can determine which offers the best conditions for your specific profile.
Required Documents for Newcomers
Required documentation varies by status. Here is the general list:
| Document | Details |
|---|---|
| Proof of Status | PR card, confirmation of permanent residence, or valid work permit |
| Employment Letter | Title, start date, salary, permanent or contract nature |
| Pay Stubs | Last 2 stubs showing Canadian income |
| Alternative Credit | 12 months of rent payments, utility bills, or international credit report |
| Proof of Down Payment | Bank statements (90 days) showing accumulation or funds transfer |
| Identification | Valid passport + proof of Canadian address |
No Canadian Credit History? Here Are the Solutions
The absence of Canadian credit history is the number one challenge for newcomers. Good news: several solutions exist.
International Credit
Some lenders accept international credit reports. Specialized agencies like Nova Credit can transfer your credit history from your country of origin into a Canadian format.
Alternative Documentation
12 months of rent payments (bank statements or landlord letters), phone bills, electricity, and insurance paid on time constitute an alternative credit history accepted by CMHC.
Building Credit Quickly
Secured credit card + paying the full balance every month. After 6 to 12 months, you will have a usable Canadian credit score. Start from day one of your arrival.
Quebec Specifics for Newcomers
Quebec has its own immigration system with the CAQ (Certificat d’acceptation du Québec) and CSQ (Certificat de sélection du Québec). These documents are important for your mortgage file as they demonstrate your intention to reside in Quebec long-term.
The Montreal real estate market offers an advantage for newcomers: plex buildings (duplex, triplex) allow you to purchase a building, live in one unit, and rent the others to help with mortgage payments. This is a particularly popular strategy in Montreal.
Anthony King: Bilingual Service Tailored to Newcomers
Navigating the Canadian mortgage system is complex, even more so when it is not your first banking system. Anthony King, mortgage broker in Montreal, offers a fully bilingual service (French and English) and regularly works with clients from all backgrounds.
With access to 14 lenders, he identifies programs specific to newcomers, compares alternative credit acceptance conditions, and structures your file to maximize your chances of approval. The service is free to the borrower.
Frequently Asked Questions
Can I buy property in Canada with a work permit?
Yes. Valid work permit holders can purchase property in Canada. The minimum down payment and conditions vary by permit type (closed or open) and lender. Some A-lenders accept closed work permits with only 5% down.
How long does it take to build sufficient credit in Canada?
With a secured credit card used regularly and paid in full each month, you can have a usable score in 6 to 12 months. However, the CMHC newcomer program allows purchasing with alternative credit (rent history, bills), without waiting.
Are first-time buyer programs (HBP, FHSA) accessible to immigrants?
Yes. Permanent residents and work permit holders who file Canadian tax returns have access to the HBP ($60,000 from RRSP) and FHSA ($40,000), under the same conditions as Canadian citizens.
Does Anthony King offer service in other languages?
Anthony King provides full service in French and English. For other languages, he works with a network of partners who can assist in the process. Contact him at 514-647-8663 to discuss your needs.
Welcome to Canada — Start Your Real Estate Project
Contact Anthony King for a free, no-obligation consultation. He will explain your options in the language of your choice.