New to Canada

You do not necessarily have to live in Canada for several years before buying a home. Under CMHC's current Newcomers program, there is no minimum period of Canadian residency required. Permanent residents may be eligible, and some non-permanent residents who are legally authorized to work in Canada may also qualify.

Your mortgage lender will still need to verify that you have enough income to support the mortgage. Your employment, income history, immigration status, down payment, credit history and other debts can all affect which lenders and mortgage programs are available.

If you recently arrived in Nanaimo or elsewhere on Vancouver Island, it can be useful to review your mortgage options early rather than assuming you need to wait a certain number of years.

Possibly. A limited Canadian credit history does not automatically prevent a newcomer from qualifying for a mortgage.

Depending on the lender and mortgage program, other information may be considered to help establish how you have managed credit. CMHC, for example, may consider an international credit report, a reference letter from a financial institution in your country of origin, or other acceptable methods of confirming creditworthiness.

Building Canadian credit as soon as possible is still helpful. Paying credit cards, utilities and other accounts on time can help establish the Canadian credit record lenders may use for future borrowing.

The minimum down payment depends on the purchase price and the mortgage program you qualify for. For an eligible owner-occupied home priced at $500,000 or less, the minimum down payment can start at 5%.

For a home priced above $500,000 but below $1.5 million, the minimum is generally 5% of the first $500,000 plus 10% of the portion above $500,000. A larger down payment may be required depending on your residency status, credit, property, lender and overall application.

If your down payment is below 20%, mortgage loan insurance will generally be required. Before shopping for a home, it is also important to keep money available for closing costs rather than using every available dollar for the down payment.

Depending on the mortgage program, down payment funds may come from sources such as your own savings, proceeds from the sale of another property or a non-repayable financial gift from a relative.

If the money is held outside Canada or has recently been transferred into a Canadian account, the lender will normally require documents showing where the funds came from and confirming that they are available for the purchase.

You may be asked for bank statements, transfer records, a gift letter or other documents. Requirements vary between lenders, so it is helpful to discuss overseas funds before moving the money or making an offer on a home.

Some non-permanent residents who are legally authorized to work in Canada may qualify for mortgage financing, but mortgage eligibility and permission to purchase residential property are separate issues.

Canada currently has federal restrictions on certain residential purchases by non-Canadians, with exemptions applying in specific circumstances. These federal rules are currently scheduled to remain in effect until January 1, 2027.

There can also be an important BC tax consideration. Foreign nationals purchasing residential property within the Regional District of Nanaimo may be subject to BC's additional property transfer tax, currently 20% of the applicable fair market value. Certain exemptions or refunds may apply, including in some circumstances for qualifying BC Provincial Nominees or purchasers who later become permanent residents or Canadian citizens.

Because immigration status and property transfer tax rules can materially affect the cost and eligibility of a purchase, confirm your situation with your mortgage broker and the lawyer or notary handling your purchase before you make an offer.