Borrower guides
New to Canada Mortgages in St. Catharines, Niagara Falls and Across Niagara
Permanent residents and some work permit holders can buy in Niagara with 5% to 10% down, even with little Canadian credit history. Here is what your status changes, which documents lenders ask for, and what a first purchase really costs.
Reviewed November 13, 2026 · Indicative figures, OAC
Your immigration status comes first
For a newcomer, the first question is not the rate. It is whether you can buy, and on what terms. Two rules sit above every lender policy:
- The federal foreign buyer ban. The Prohibition on the Purchase of Residential Property by Non-Canadians Act, extended to January 1, 2027, generally stops non-Canadians from buying residential property in Canada's census metropolitan areas and census agglomerations, which include most of Niagara. Permanent residents are not affected. Work permit holders are non-Canadians, but an exception exists for some of them if they meet conditions (for example, on how long the permit remains valid and on not owning other residential property in Canada).
- Ontario's Non-Resident Speculation Tax. Foreign nationals buying residential property in Ontario can owe this tax, currently 25% of the price, unless an exemption applies. Permanent residents do not pay it. Exemptions for others are limited and the rules have changed over time.
If you are on a work permit or study permit, confirm both with a real estate lawyer before you make an offer. Everything below assumes you are allowed to buy.
- Minimum down on $530,000
- $28,000
- Payment, 4.29% over 30 years
- $2,574/month
- Cash to close, example
- $34,611.72
- Canadian work history usually needed
- about 3 months
Newcomer mortgage programs: how they work
Some default insurers and lenders run newcomer programs for people who arrived in Canada in roughly the last five years. They exist because a lack of Canadian credit history says little about whether you will pay your mortgage. The details vary by insurer and lender, but the common pattern is:
| Your situation | Typical minimum down | Credit evidence | Notes |
|---|---|---|---|
| Permanent resident with some Canadian credit | 5% | Canadian credit report, even a short one | Same rules as any first-time buyer once credit is established |
| Permanent resident with little or no Canadian credit | 5%–10% | International credit report, or alternative proof such as 12 months of rent and utility payments | Thinner evidence usually means a larger down payment |
| Work permit holder who is eligible to buy | 10% or more | As above; some programs ask for more | Check the ban exception and Non-Resident Speculation Tax first |
Income
Lenders count Canadian employment income. Most want you in a permanent job for at least about three months, past any probation period, though some waive probation if you are working in the same profession you practised before arriving. Income earned abroad generally does not count, and contract or self-employed income needs more history.
Down payment
Lenders want to see where the money came from. Expect to show 90 days of history for the account holding it. Money brought from abroad needs a paper trail: foreign bank statements (translated if not in English or French), transfer receipts and the Canadian account it landed in. Move it into Canada well before you apply. Gifts from immediate family are widely accepted with a signed gift letter, and the funds must be in your account before closing.
Worked example: newcomers buy a townhouse in St. Catharines
Worked example: permanent residents, two years in Canada
A couple became permanent residents two years ago and now work in St. Catharines, earning $68,000 and $54,000. They have one $300 monthly loan payment and have never owned a home anywhere. They buy a $530,000 freehold townhouse, use a 30-year insured amortization as first-time buyers, and take an indicative 4.29% 5-year fixed.
| Item | Amount |
|---|---|
| Purchase price | $530,000 |
| Minimum down payment (5% of $500,000 + 10% of $30,000) | $28,000 |
| Mortgage before insurance (94.7% loan-to-value) | $502,000 |
| Insurance premium (4.00% + 0.20% for 30 years) | $21,084 |
| Total mortgage | $523,084 |
| Monthly payment, 4.29%, 30 years | $2,574 |
| 8% sales tax on premium (cash at closing) | $1,686.72 |
| Ontario land transfer tax $7,075 less $4,000 first-time buyer refund | $3,075 |
| Legal, title insurance, disbursements (budget) | $1,850 |
| Cash to close | $34,611.72 |
Qualifying at the 6.29% stress-test rate, the payment is $3,207. Add St. Catharines' approximate 1.26% property tax ($556.50 a month) and $125 heating, and GDS is about 38.2% of their $10,167 monthly income; TDS with the $300 loan is about 41.2%. Both are under the 39% and 44% limits.
If their credit evidence were thin and the insurer asked for 10% down, they would put $53,000 down, the premium would fall to 3.30% ($15,741, with $1,259.28 sales tax in cash), the mortgage would be $492,741 and the payment about $2,425 a month.
Building your Canadian file in the first year
A newcomer who plans to buy in a year or two can make the application much stronger with a few early moves:
- Open a Canadian credit card in your first months, even a secured one, use it lightly and pay it in full. Twelve months of clean history changes how lenders see you.
- Pay rent by traceable method (e-transfer or cheque, not cash) and keep your lease. It is alternative credit evidence.
- Open a First Home Savings Account once you are eligible. It allows $8,000 a year, up to $40,000 lifetime, tax-deductible going in and tax-free coming out for a first home. Ask your accountant about eligibility and the RRSP Home Buyers' Plan.
- Avoid a job change in the months before you apply, unless it is a clear step up in the same field.
Step by step for newcomers
- Confirm you can buy. Permanent residents can. Work and study permit holders should speak to a real estate lawyer about the foreign buyer ban and the Non-Resident Speculation Tax first.
- Collect status and identity documents: PR card or confirmation of permanent residence, or work permit, plus passport.
- Get your employment letter and pay stubs once you have passed probation or have about three months in the job.
- Document your down payment: 90 days of statements, foreign transfer records, and a gift letter if family is helping.
- Get pre-approved at pre-approval, and read the first-time buyer guide and 30-year amortization rules.
- Budget closing costs with the payment and closing cost calculator, including the cash sales tax on the insurance premium.
Frequently asked questions
Can I get a mortgage in Canada without Canadian credit history?
Yes. Some default insurers and lenders run newcomer programs that accept an international credit report or alternative evidence such as 12 months of on-time rent and utility payments. With thinner credit evidence, expect to need a larger down payment, often 10% rather than 5%.
Can work permit holders buy a home in Niagara?
Possibly. Work permit holders are non-Canadians under the federal foreign buyer ban, which is extended to January 1, 2027, but an exception exists for some who meet conditions. Ontario's Non-Resident Speculation Tax may also apply. A real estate lawyer must confirm both before you make an offer. Lenders that accept work permit holders typically ask for 10% or more down.
How long do I need to work in Canada before getting a mortgage?
Most lenders want at least about three months in a permanent job, past any probation period. Some waive probation when you are working in the same profession you had before immigrating. Income earned outside Canada generally does not count.
Can I use money from my home country for the down payment?
Yes, if you can document it. Lenders want foreign bank statements, transfer records and the Canadian account the money arrived in, with a 90-day history. Gifts from immediate family are usually accepted with a signed gift letter. Moving funds into Canada early makes the process easier.
Do newcomers get the first-time buyer land transfer tax refund?
Only if you have never owned a home or an interest in a home anywhere in the world and become a Canadian citizen or permanent resident within 18 months of buying. If eligible, the refund is up to $4,000, which reduces the tax on a $530,000 St. Catharines home from $7,075 to $3,075.
Pre-approval & rate review
Get your Niagara mortgage numbers checked
Tell us where you are buying or what you owe. We reply by email, usually within one business day, with options from across the lender tiers.
- A licensed advisor reviews your numbers against A-lenders, Ontario credit unions and alternative lenders.
- Rate holds of up to 120 days on purchases and renewals (lender-dependent).
- On prime files the lender pays the brokerage, so there is no fee to you; any fee on alternative or private files is disclosed in writing first.
- Nothing goes to a lender or credit bureau until you say so.
Prefer email? Write to hello@mortgageniagara.com.