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Buying a home in Canada

We understand that purchasing a home in Canada is one of the biggest financial decisions you will make. At TD, we want to make it easier for you to make your home financing decisions. To help you navigate through this process, we've outlined some key things you should know.

TD Mortgage Specialists are here to help

A TD Mortgage Specialist can offer advice to help you buy your first home in Canada, even if you have no Canadian credit history.1 Here are some ways a TD Mortgage Specialist can guide you along the way:

  1. Saving for a down payment
    Get saving tips to help make it easier and understand how large of a down payment you will need for your situation.

  2. Mortgages and rates
    Understand how mortgages work, the different financing options and how they can impact your interest rate.

  3. Mortgage application process
    Understand how mortgages fit into the home buying process and what documents you will need to provide for your mortgage application.

  1. Mortgage pre-approval
    Understand the benefits of a mortgage pre-approval such as giving you a clearer idea of the mortgage amount you could get approved for and strengthen your position with realtors and home sellers that you’re a serious buyer.

  2. Paying off your mortgage faster 
    Learn about the different mortgage features to pay off your mortgage sooner. 

  3. Personalized advice in a variety of languages
    Request a call and we can connect you with a TD Mortgage Specialist. You can choose a TD Mortgage Specialist for personalized advice from a variety of languages that we offer. 

Have more questions about buying your first home as a newcomer?

Find the right newcomer mortgage solution for you

At TD, we have mortgage solutions tailored for newcomers. You could qualify for a mortgage even if you have limited or no Canadian credit history and limited employment in Canada.1 We have different solutions depending on your newcomer status and the amount of your down payment. 

Keep in mind, a lower down payment means lower upfront costs for you, however you will pay more interest over the life of the mortgage versus a larger down payment.

  • For Permanent Residents

    If you are currently a Permanent Resident and obtained your permanent resident status in Canada within the last 5 years and have at least 3 months of full-time Canadian employment, we have the following 2 options:

    • This mortgage solution requires a minimum down payment of 35% of the home purchase price or value of the home, whichever is lower. You don’t have to pay for mortgage default insurance premiums with this option.
    • If you are unable to meet a minimum down payment of 35%, you will need to pay for mortgage default insurance premiums. This option requires a minimum down payment as low as 5%, however, the purchase price of the house must be under $1 million.

  • For Foreign Workers

    If you are a temporary resident with a valid work permit who has relocated to Canada within the last 2 years and have at least 3 months of employment in Canada on a full-time basis, we have the following 2 options:

    • The minimum down payment for this mortgage solution is 20% of the home purchase price or value of the home, whichever is lower and mortgage default insurance is not required.
    • If you are unable to meet a minimum down payment of 20%, you will need to pay for mortgage default insurance premiums. This option  requires a minimum down payment as low as 5%, however, the purchase price of the house must be under $1 million.

Why choose a TD Mortgage?

  • Competitive rates & 120-day rate hold2

    We offer some special rates4, and with a pre-approved mortgage, we can hold your rate for 120 days2 so you can shop with more confidence.

  • Flexible mortgage options

    Get flexible payment options that may help fit your needs, like the ability to speed up or slow down your mortgage payments.3

  • No Canadian credit history required for newcomers1

    Speak with a TD Mortgage Specialist to see if you're eligible for a TD newcomer mortgage solution, even if you have no Canadian credit history.

Mortgage process for newcomers

If you're ready to buy your first home in Canada as a newcomer and have already arrived in Canada, let's walk you through how the mortgage process will work.

To be eligible for the TD newcomer mortgage solutions, you must have at least 3 months of full-time employment in Canada and you must be

  • a Permanent Resident and obtained Permanent Residence status in Canada within the last 5 years, OR 
  • a temporary resident with a valid work permit who's relocated to Canada within the last 2 years.

No Canadian credit history is required, provided you meet all of the other eligibility and credit criteria.

A TD Mortgage Specialist can help you determine how much you can borrow for your home based on your income, savings, monthly expenses, and more.

Before you start house hunting, you'll want to consider getting a TD mortgage pre-approval. This will help show that you're qualified for a mortgage loan, up to a specific amount, so you can shop with more confidence.2

To get a mortgage pre-approval, start by connecting with a TD Mortgage Specialist.

Once you've been pre-approved, it’s time for the fun part. This is where you go on a journey of discovery to find a home that’s just right for you. At this stage you may begin looking for a real estate agent. Before choosing a real estate agent, meet with them to get a sense if their personality and level of service are a good fit for you and try to pick someone with excellent credentials and references. Remember, the agent is usually paid by the seller so it may not cost you anything to use one.

When you find a home you love, make sure it's within your price range and speak to a real estate lawyer before submitting your offer.

Once your purchase offer is accepted, you'll need to start your mortgage application, get approved and close the deal. If you are applying for one of the TD newcomer mortgage solutions, you need to provide the following documents:

  • Your Permanent Resident Card or valid work permit (IMM Form #1442) 
  • Sources of verifiable income and full-time employment in Canada such as pay stubs, employment letter and bank statements confirming direct deposit
  • Documents that show where you are getting your down payment from.  This might include financial statements from your bank in your home country  
  • Recent statements of your savings, investments, loans, credit cards and lines of credit 
  • Housing expenses (e.g. property tax, condo fees, heating costs)
  • The signed offer to purchase the home

A TD Mortgage Specialist will let you know what other documents may be required for your situation.

As of January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act is in effect. This means the Government of Canada placed some restrictions on the purchase of residential property in Canada by non-Canadians. We recommend you consult with a lawyer/notary for guidance to confirm your eligibility to purchase a home in Canada.

Frequently asked questions

How much down payment you need depends on the purchase price of your home and whether you're getting a conventional mortgage or a default insured mortgage.

A good credit score is typically required to get a mortgage in Canada because it shows your mortgage lender how responsible you are with your spending and manage credit.  

 At TD, we understand that as a newcomer to Canada, you may still be building up your credit score and be in the early stages of establishing your full-time employment in Canada. But with our mortgage solutions for newcomers, you may still be eligible for a TD Mortgage, even without  Canadian credit history. Connect with a TD Mortgage Specialist to see if you may be eligible for a TD Mortgage.

You should apply for a mortgage pre-approval after you have arrived in Canada and when you are ready to start home-hunting. Your pre-approval may only be good for a short amount of time so it's important to apply for it right before you start your home search and you have everything else you need to buy. At TD, we'll hold your pre-approved mortgage rate for 120 days2 so you can home-hunt with more confidence.

Home insurance (or condo insurance if buying a condo) covers the repair or replacement of your home and personal belongings (up to policy limits) against unexpected losses such as theft, fire, etc. Most mortgage lenders will require you to have home/condo insurance to get your mortgage.

Mortgage default insurance is insurance that protects the mortgage lender for losses if you default on the mortgage. Mortgage default insurance is mandatory for high ratio mortgages and required if you put less than 20% down payment. Standard conventional mortgage programs require a minimum 20% down payment. TD’s newcomer mortgage solution for Permanent Residents requires mortgage default insurance if you have less than 35% down payment.

Mortgage protection insurance, also known as mortgage creditor insurance, is an optional insurance product that provides mortgage critical illness and life insurance options. For example, if you were to die or be diagnosed with a covered critical illness, this insurance could pay down or pay off your remaining mortgage balance, up to the maximum coverage limit.

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