Improves housing choice for newcomers to Canada.
According to the Mortgage Consumer Survey, 18% of mortgage consumers are newcomers to Canada.
Newcomers to Canada are an important and growing segment of Canada’s population, creating new market opportunities. CMHC-insured financing is available to borrowers with permanent and non-permanent residency status.
We offer information in many languages on renting and buying apartments and houses, and can also help newcomers plan for and manage a mortgage.
Download our CMHC Newcomers Fact Sheet (PDF).
Newcomers to Canada with permanent resident status have access to all CMHC homeowner mortgage loan insurance products, with a minimum down payment starting at 5%.
If there is limited Canadian credit history, and where foreign credit bureaus are not available, CMHC may consider alternative sources of payment history.
At least one borrower (or guarantor) must have a minimum credit score of 600.
CMHC may consider alternative methods of establishing creditworthiness for borrowers without a credit history. Examples of borrowers without a credit history could include recent graduates and newly divorced borrowers. For more information on alternative sources of payment history, download the CMHC Newcomers Fact Sheet.
Non-permanent residents must be legally authorized to work in Canada (with a work permit). Mortgage loan insurance is limited to the purchase of a 1-unit property, owner occupied with a minimum down payment of 10%. The purchase must not be subject to any prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
U.S. country of origin: In the absence of a sufficient credit report from a Canadian credit reporting agency, CMHC will obtain an international credit report.
For all other countries: Where the creditworthiness cannot be verified through an international credit record, mortgage professionals should ask the borrower to provide a letter of reference from their financial institution in their country of origin.
Individuals who are Canadian citizens, permanent residents of Canada, or non-permanent residents who are legally authorized to work in Canada.
For homeowner loans (owner-occupied properties), the loan-to-value ratio for 1 – 2 units is up to 95% LTV. For 3 – 4 units, the ratio is up to 90% LTV.
For small rental loans (non-owner occupied), the loan-to-value ratio for 2 – 4 units is up to 80% LTV.
For homeowner loans, the minimum equity requirement for 1 – 2 units is 5% of the first $500,000 of lending value and 10% of the remainder of the lending value. For 3 – 4 units, the minimum equity requirement is 10%.
For small rental loans, the minimum equity requirement is 20%.
For both homeowner and small rental loans, the maximum purchase price / lending value or as-improved property value must be below $1,000,000.
For homeowner loans, CMHC-insured financing is available for one property per borrower/co-borrower at any given time.
The maximum amortization period is 25 years.
The property must be located in Canada and must be suitable and available for full-time, year-round occupancy. The property must also have year-round access (via a vehicular bridge or ferry if it is on an island).
The down payment can come from sources such as savings, the sale of a property, or a non-repayable financial gift from a relative.
Whether the property is owner occupied or non-owner occupied, subject to an MLI application or not, we offer different approaches to rental income for qualification purposes.
Find out more about the approach(es) that can be used to calculate rental income and the inputs to consider when calculating the debt service ratios.
At least one borrower (or guarantor) must have a minimum credit score of 600. CMHC may consider alternative methods of establishing creditworthiness for borrowers without a credit history.
The maximum threshold is a gross debt service (GDS) ratio of 39% and a total debt service (TDS) ratio of 44%.
New: The GDS and TDS ratios must be calculated using an interest rate which is the greater of the contract interest rate plus 2 per cent, or 5.25 per cent.
Single advances include improvement costs less than or equal to 10% of the as-improved value.
Progress advances include new construction financing or improvement costs greater than 10% of the as-improved value. With Full Service, CMHC validates up to 4 consecutive advances at no cost. For Basic Service, the Lender validates advances without pre-approval from CMHC.
Non-permanent residents must be legally authorized to work in Canada (with a work permit). Mortgage loan insurance is only available for non-permanent residents for homeowner loans for 1-unit property, owner occupied, up to 90% LTV. The purchase must not be subject to any prohibition under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Non-permanent residents are not eligible for alternative methods of establishing creditworthiness. In cases where a credit report is not available, a letter of reference from the borrower’s financial institution in their country of origin may be considered.
Learn about mortgage insurance premium costs with our Premium Information for Homeowner and Small Rental Loans.
Contact your Regional Manager, Client Relations or call our Underwriting Centre team at 1-888 GO emili (1-888-463-6454).
This material is a quick reference tool for CMHC’s common Mortgage Loan Insurance. Additional conditions may apply.
This information is subject to change at any time. Please verify with CMHC that you have the most up to date information before the loan is processed.
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