Buying your first home in Canada is exciting, but as a newcomer, it can also feel overwhelming. The Canadian mortgage system may be different from what you’re used to, and understanding the process is key to making smart, confident decisions.
In this guide, we’ll walk you through the step-by-step process of buying your first home in Canada as an immigrant, from mortgage pre-approval to closing day.
1. Understand How Mortgages Work in Canada
In Canada, a mortgage is a loan secured by real estate, usually repaid over 25 to 30 years. You’ll typically need:
- A down payment (minimum 5%–20%)
- A Canadian bank account
- Proof of income and employment
- A decent credit history or alternative credit (e.g. rent, utility payments)
Newcomers can apply for a mortgage even if they’ve only been in Canada a short time.
Tip: Some lenders offer newcomer mortgage programs with relaxed requirements.
2. Check Your Credit and Start Building It Early
Your credit score plays a big role in your mortgage approval and interest rate. If you’re new to Canada, you may not have an established score yet.
What You Can Do:
- Apply for a secured credit card and use it responsibly
- Pay all bills on time (phone, internet, rent)
- Keep balances low
Some lenders will accept alternative credit history from your home country or proof of timely rent/utilities in Canada.
3. Save for Your Down Payment and Closing Costs
To buy a home in Canada, you’ll need a minimum down payment of 5% of the purchase price. If the home costs more than $500,000, that percentage increases.
Plus, you’ll need to budget for:
- Closing costs (1.5%–4% of the purchase price)
- Home inspection
- Land transfer tax
- Legal fees
4. Get Pre-Approved for a Mortgage
Getting pre-approved shows real estate agents and sellers that you’re serious. It also gives you a clear idea of what you can afford.
When applying for pre-approval, a mortgage specialistr will ask for:
- ID and immigration status (PR, work permit, etc.)
- Proof of income/employment (pay stubs, offer letter)
- Bank statements
5. Work With a Real Estate Agent Who Understands Immigrant Buyers
An experienced agent can:
- Help you find homes within your budget
- Explain the local market and neighborhoods
- Guide you through making an offer
Look for someone familiar with first-time immigrant buyers and who can explain terms clearly. Contact us if you are looking for a realtor and we would be happy to make a referral for you!
6. Make an Offer and Secure Your Mortgage
Once you find your dream home, your agent will help you:
- Make an offer
- Negotiate conditions (home inspection, financing, etc.)
Once accepted, return to your mortgage specialisr for final mortgage approval.
7. Close the Deal and Move In
Your lawyer and lender will coordinate everything behind the scenes. You’ll:
- Sign final documents
- Pay closing costs
- Receive the keys on closing day!
Extra Resources for Newcomers Buying a Home in Canada
Final Thoughts: You Can Buy a Home in Canada—Even as a Newcomer
Homeownership is possible, even if you’re new to Canada. By understanding the mortgage process, building your credit, and getting expert help, you’ll be on the path to securing your first home.
Ready to Start Your Journey?
If you’re an immigrant looking to buy your first home in Canada, we are here to help! Contact us and we will guide you every step of the way.
At Indi Mortgage, we offer a fresh, modern approach! One that’s simple, transparent, and built entirely around your needs and long term goals. We believe getting a mortgage shouldn’t feel overwhelming. It should feel empowering and exciting!
Indi Mortgage in the Valley 
Leave a comment