Newcomer to Canada? Step-by-Step Guide to Getting a Mortgage in Surrey

Moving to Canada is an exciting milestone, and for many newcomers, buying a home is an important part of settling in. If you are new to the country and planning to purchase a home in Surrey, understanding how the mortgage process works is essential. While the system may feel complex at first, the right guidance can make it manageable and stress-free.

This article serves as a guide to getting a mortgage as a newcomer, explaining requirements, steps, and practical mortgage tips for recent immigrants in Surrey.

Following Steps:

Step 1: Understand Mortgage Eligibility for Newcomers

Canada has well-defined mortgage guidelines, but many lenders offer special programs for newcomers. Even if you have limited Canadian credit history, you may still qualify.

Lenders typically assess:

• Immigration status (Permanent Resident, Work Permit, or New Immigrant)
• Length of time in Canada
• Employment and income stability
• Down payment amount

Many first-time home buyers in Canada who are new immigrants qualify through newcomer mortgage programs designed to support early settlement.

Step 2: Employment and Income Requirements

Stable income is a key factor in mortgage approval. As a newcomer, lenders may accept:

• Full-time salaried employment
• Guaranteed income contracts
• Employment letters with probation details

Some lenders accept income with as little as three months of Canadian employment history, especially when supported by strong credentials or international work experience.

Working with a mortgage broker helps match your profile to lenders familiar with newcomer applications.

Step 3: Credit History — What If You’re New to Canada?

A common concern for newcomers is the lack of Canadian credit history. While this can limit lender options, it does not prevent homeownership.

Newcomer mortgage programs may consider:

• International credit reports
• Strong down payment strength
• Alternative credit (rent payments, utilities, phone bills)

Building Canadian credit early—by opening a bank account and using a credit card responsibly—will improve mortgage options over time.

Step 4: Down Payment Rules for Newcomers

Down payment requirements are often higher for newcomers, depending on credit history and lender policy.

Typical expectations include:

• 5% to 10% down with strong income and limited credit
• 20% down if credit history is minimal or unavailable

Funds must be verifiable and may come from:

• Personal savings
• Funds transferred from abroad
• Gifted funds from immediate family

Proper documentation of funds is essential.

Step 5: First-Time Home Buyer Programs in Canada

As a first-time home buyer in Canada, newcomers may qualify for federal and provincial programs, including:

• First-Time Home Buyer Incentive
• Home Buyers’ Plan (RRSP withdrawal)
• Land transfer tax rebates (where applicable)

These programs can reduce upfront costs and improve affordability when buying a home in Surrey.

Step 6: Mortgage Pre-Approval — A Critical Step

Before house hunting, securing a mortgage pre-approval is strongly recommended. Pre-approval:

• Confirms your budget
• Strengthens purchase offers
• Identifies potential issues early

For newcomers, pre-approval also ensures lender alignment before committing to a property.

Step 7: Choosing the Right Property in Surrey

Surrey offers diverse housing options, including condos, townhomes, and detached homes. Lenders consider:

• Property type
• Intended use (owner-occupied vs rental)
• Appraised value

Some newcomer programs restrict property types, making broker guidance especially valuable.

Step 8: Final Approval and Closing

Once an offer is accepted, the lender completes:

• Property appraisal
• Final income verification
• Document review

After approval, legal and closing steps are completed, and you officially become a homeowner in Canada.

New to Canada? Mortgage Tips for Recent Immigrants in Surrey

To improve approval chances:

• Save a strong down payment
• Build Canadian credit early
• Keep employment stable
• Avoid large purchases before approval
• Work with a mortgage broker experienced in newcomer files

These steps reduce delays and improve lender confidence.

Why Work with a Mortgage Broker for Newcomer Mortgages?

Mortgage rules and lender programs vary significantly. A broker helps:

• Match you with newcomer-friendly lenders
• Structure your application strategically
• Navigate credit and income challenges
• Secure competitive rates

At Home Ease Mortgages, we specialize in helping newcomers confidently transition into Canadian homeownership

Final Thoughts

Buying your first home as a newcomer does not have to be overwhelming. With the right planning, guidance, and lender strategy, owning a home in Surrey is achievable—even without long Canadian credit history.

If you are new to Canada and exploring your options, Home Ease Mortgages is here to guide you every step of the way.