Mortgage Information for Newcomers To Canada

The sage New to Canada Program and other Mortgage Insurance Products for Newcomers

Newcomers to Canada CMHC and Sagen insured financing is available to borrowers with permanent and non-permanent residence status, I help newcomers to realize their dream of homeownership in Canada.


Sagen New To Canada Program 

The Sagen New to Canada Program provides mortgage insurance for qualified homebuyers who are permanent residents, temporary residents, or refugees in Canada with less than 5 years of credit history. This program allows eligible newcomers to access competitive mortgage rates and terms, with a down payment as low as 5% of the purchase price.


The Sagen New to Canada Program is a valuable option for newcomers to Canada who are looking to purchase a home but may have limited credit history or employment records. It helps them overcome the barriers to homeownership and provides an opportunity to establish a credit history in Canada. As each individual’s situation may vary, it’s important to work with a qualified mortgage professional to determine eligibility and explore the best mortgage options available under the Sagen New to Canada Program.


CMHC New To Canada Program

The CMHC New to Canada Program provides mortgage loan insurance for newcomers who are permanent residents, temporary residents, or refugees in Canada with less than 5 years of credit history. This program allows eligible newcomers to access competitive mortgage rates and terms, with a down payment as low as 5% of the purchase price.


To qualify for the CMHC New to Canada Program, newcomers must meet certain criteria, including having a valid work permit or landed immigrant status, having a valid Canadian Social Insurance Number (SIN), and providing a minimum of 3 months’ full-time employment history or an employment contract for at least 3 months. The program also requires newcomers to have a minimum credit score of 600, which can be based on credit history from their home country or other acceptable sources.


The Program Features

Newcomers with permanent resident status have access to all CMHC and Genworth Mortgage Loan Insurance products (subject to product specific eligibility requirements).

For permanent residents, where there is limited Canadian credit history and where foreign credit bureaus are not available, CMHC and Genworth continue to consider alternative sources of payment history for Loan-to-Value ratios up to 95%.

Newcomers to Canada with non-permanent resident status have access to CMHC and Genworth insured financing of up to 90% loan-to-value ratio for the purchase of a 1 unit owner-occupied residential property.

No additional fees or premiums as a result of residency status – standard product specific premiums apply.

No minimum period of residency required.

newcomer to canada mortgage program, mortgage refinance in Kingston, mortgage specialist in Kingston, top mortgage agent near me, Leo Ragusa helping a client sign papers

Contact Leo today to get help and advice on the Genworth New to Canada Program and other Mortgage Insurance Products


The New to Canada Program Requirements Include

  • Down Payment: 35% is the required minimum down payment from one’s own resource. Down payment must be available in a Canadian Bank account prior to the Mortgage funding. Down payment cannot be in the form of a Gift and proof of funds for 90 days prior to financing is also required.
  • Proof of Income: To prove income, a letter of employment from your current employer confirming length of time at the company, your annual salary including bonuses and confirmation that you are not on probation and your salary, are required. A recent paystub will also be necessary.
  • Proof of Credit: If a Canadian Credit bureau is not available to you, than an international credit bureau or letter of reference from the bank you currently deal with, should suffice.
  • Some lenders will require a year’s worth of Mortgage payment in a Canadian bank account before they will approve.
newcomer to canada mortgage programs Kingston, top rated mortgage broker in Kingston, best mortgage agent for first time home buyers

Newcomer Mortgage Insurance FAQs

With permanent resident status, newcomers to Canada have access to mortgage insurance, with a minimum down payment starting at 5%. At least one borrower on the mortgage must have a minimum credit score of 600. If you have a limited credit history in Canada and don’t have a credit score from another country, it is possible to provide other sources of payment history. Examples of other sources are rent payments or three other types of payments from things such as utilities, TV subscriptions, childcare expenses and insurance payments. They will want documentation for the previous 12 months.

Down payments cannot be borrowed from other lenders but need to come from savings, the sale of another property or a financial gift from a relative that doesn’t have a repayment obligation.

This is mandatory insurance in Canada for mortgages with less than a 20% down payment of purchase price. This insurance serves to protect the mortgage lender in case the borrower defaults on the mortgage.
While this often adds 3-4% to the cost of the mortgage, it allows many people to get homes faster rather than saving for a 20% down payment and also increases the security of lenders so that they can offer lower mortgage rates than they would if the mortgage market was more risky.

The insurance is compulsory for those purchasing a property with less than 20% down payment.

If you choose to refinance your mortgage and already have 20% in equity, you may choose to stop the insurance. Leo Ragusa would be happy to help you refinance to a lower mortgage rate in Kingston.

There are currently 3 companies that offer mortgage default insurance:

  1. The Canada Mortgage and Housing Corporation (CMHC) – This is a crown corporation that is more or less the government providing an option for mortgage default insurance. The CMHC is often the main insurance people consider for Mortgage Default Insurance, but there are two private companies worth considering as well.
  2. Sagen (previously called Genworth Canada) is the largest private mortgage insurance provider in Canada. They have a number of programs and will likely come up on your radar if you’re looking at mortgage insurance.

Canada Guaranty was formed in 2010 through the acquisition of another mortgage insurance company to become the only 100% Canadian-owned private mortgage insurance company. As the CMHC made their requirements for mortgage insurance stricter in 2020, both private providers declined to do so. As such, you’ll likely see good options from one of these two private providers even if you get declined from the CMHC.

The First-Time Home Buyer Incentive is a government program in Canada aimed at helping eligible first-time homebuyers afford the purchase of their first home. The program was introduced by the Government of Canada in September 2019 as part of its efforts to make homeownership more accessible for Canadians.

Under the First-Time Home Buyer Incentive program, eligible first-time homebuyers can apply for a shared equity mortgage with the Government of Canada. This means that the government will contribute a percentage of the home’s purchase price, in the form of an interest-free loan, which reduces the amount of mortgage that the homebuyer needs to borrow from a lender. The incentive is available for new or existing homes, and can be used for both new construction and resale properties.

The New Home Buyer Rebate was replaced by Goods and Services Tax/Harmonized Sales Tax (GST/HST) New Housing Rebate as of September 2021. According to the new rebate program, you will receive a part of the GST/HST paid on your new purchase depending on the property price. For more information, visit