How Mortgage Brokers Can Help Newcomers Navigate Canada’s Housing Market

At United Mortgage Group, many of our brokers are passionate about helping newcomers navigate the homebuying process — because they’ve been there. As immigrants who have purchased homes in Canada, they understand how overwhelming it can be, and how crucial the right support is.

We believe education is one of the strongest tools in a broker’s toolkit. That’s why we bring lender partners into the room — to walk through typical and atypical files, plus clarify grey areas, so we have all the details to better serve our clients.

Our recent session with April Morin from MERIX Financial did just that. She shared an inside look at how MERIX supports brokers working with New to Canada clients: what you need to know, where files can stall, and how to keep them moving forward.

Who Qualifies as a New to Canada Borrower?

A borrower is considered New to Canada if they have immigrated or relocated within the last 60 months. After five years, they’re generally considered fully established.

These files often hinge on three areas:

• Immigration status (permanent resident or valid work permit)

• Employment history (both in Canada and abroad)

• Source and documentation of down payment funds, if from overseas

They also follow the same insured lending guidelines as any high-ratio deal, which makes accuracy and compliance essential.

Why Permanent Residency and SIN Numbers Matter

A client’s immigration status determines both eligibility and required documentation. Many newcomers arrive with a temporary SIN (usually it begins with a 9). Once they obtain permanent residency, they must apply for a new, permanent SIN — it’s not issued automatically. It’s a common reason files get delayed.

Work permit holders are also eligible, provided their permit is valid for at least 183 days from the date the purchase and sale agreement was signed.

What Lenders Look for with Employment History

MERIX and other lenders allow up to two years of employment history, which may include international experience. This can be a key advantage for skilled professionals who are new to Canada and our workforce, but are established in their careers.

If a client holds PR status, MERIX may accept less than 90 days of Canadian work history — as long as they have consistent employment in the same field.

For clients on a valid work permit, 90 days of Canadian full-time employment is required. That employment must be guaranteed and not under probation.

No Credit History? Here’s How Newcomers Can Still Qualify

For many newcomers, a traditional Canadian credit bureau doesn’t yet exist. MERIX offers four alternative options to demonstrate credit strength:

1. International credit bureau: A credit report from the United States or United Kingdom showing a strong profile.

2. Two Canadian alternative sources: Twelve months of on-time, arrears-free payments from any two common household bills — like rent (with a landlord letter and supporting bank statements), hydro, utilities, telephone, cable, or a cell phone plan.

3. Verifiable bank statements: If the loan-to-value (LTV) is over 90 per cent, lenders typically require 12 months of bank statements from a recognized Canadian or foreign financial institution. For LTVs of 90 per cent or less, six months of Canadian bank statements from the borrower’s primary account are usually sufficient.

4. Reference letter: A formal reference from the borrower’s financial institution.

Credit education is also essential. Brokers should advise clients to keep their credit use below 65 per cent of available limits to avoid damaging their score. For high-ratio files, a credit score of at least 600 is typically required.

How to Document a Down Payment from Overseas or Family

MERIX reviews all overseas down payments based on internal policies and international standards such as Financial Action Task Force (FATF) guidelines. Required documentation also depends on the country of origin, which is assessed by risk category.

Generally, you’ll need:

• Wire transfer receipts

• Proof of deposit into a Canadian financial institution

• A clear source of the funds — often supported by 90 days of bank statements

If the down payment is gifted, brokers must be able to demonstrate that the donor had the funds. MERIX may request documentation such as a copy of the wire transfer or three months of the donor’s bank statements.

Immediate family members (parents, siblings, grandparents, legal guardians) and corporate subsidies are generally acceptable sources for gifted funds.

Be prepared to explain:

• Multiple small deposits

• Large, unexplained lump-sum transfers

• Gaps or inconsistencies in financial histories

Ultimately, lenders assess whether the borrower’s overall wealth supports their current income. Bank statements and pay stubs remain some of the clearest tools we have to build that picture.

Tips for a Stronger Application: What Brokers Should Keep in Mind

• Collect everything from the client, but only upload what’s requested

• Review documents carefully before submitting

• Ask about unusual deposits

• Understand where the funds are coming from

• Use pay stubs and bank statements to build a clear borrower profile

Is a MIC Mortgage Right for Your Client?

New to Canada files are detailed, but they don’t have to be daunting. As our session with April Morin from MERIX Financial showed, success comes from understanding the nuances — and knowing how to guide clients through them with clarity and care.

How do you approach New to Canada lending? What’s helped you support your clients Drop your insights or questions in the comments — let’s learn from each other.

Want to connect directly? Let’s keep the conversation going.

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