What If You're Not A Canadian Citizen... Can You Still Get Financing?

By: Thomas Cook

What If You're Not A Canadian Citizen... Can You Still Get Financing?

There are definitely ways for non-citizens to arrange financing for real estate purchases in Canada.  These rules are divided according to the immigration status of the mortgage applicant.
New To Canada - Permanent Residents
Client Profile
Applicant must be in Canada less than 5 years
Must have established residence in Canada and obtained Permanent Residence Status
Minimum 3 months of full time employment
Down Payment
All monies must be in a Canadian bank account for 30 days prior to closing
Insured: Minimum 5% to a maximum of $1 million purchase price
Minimum 20% for greater than $1 million
Uninsured: 35%

Additional cash-on-hand requirement of 12 or 24 months of Principal-Interest-Taxes net worth requirement (over and above the down payment)

Standard – employment letter / pay stub (insured mortgages only)
Documentation Needed
Permanent Residence Form (IMM 5292/IMM 5688)
Permanent Resident Card
Canadian credit bureau will be run, bank reference letter from country of origin and/or 12 months of rent & utility payment confirmation
Non-Resident Foreign Investors
Personal Information Required
No requirement for landed status
Supporting docs – talk to your mortgage professional since these will vary on a case-by-case basis
Minimum down payment required is 35% - monies MUST be in a Canadian bank account for a minimum of 30 days prior to closing
Income verification - employment letter and pay stub required for each individual applicant
Credit – Canadian credit bureau if available -  otherwise a reference letter from the buyer’s home bank is required
Asset verification – confirmation of liquid assets
Miscellaneous Information and Requirements
Full appraisal required
Rentals up to 4 units
Recreational properties
Co-Ownerships – on approved list
Co-ops ineligible
NO Power of Attorney allowed – the buyer must be present in Canada for closing
Land Transfer tax as per normal (Provincial and City of Toronto as applicable)
HST on new properties due on rentals
Borrowers from the following sanctioned countries are ineligible
North Korea
Myanmar (Burma)
Sudan (including South Sudan)
Cuba (on exception)
Foreign Workers - Non-Permanent Residents Of Canada
Work Permit Form (IMM 1442): must be for minimum 1 year
Applicant must have entered Canada within 5 years of application

Client must be working for minimum 3 months in Canada or be a in a corporate relocation program (exempt)

Down Payment
High Ratio Insured Mortgages: 10% (5% for very strong applicants) – maximum purchase $1 million when less than 20% down
Uninsured: 35% - maximum purchase $1.5 million
Canadian or US bureau if available and / or Reference Letter from home bank, country of origin
Standard policies - employment letter / pay stub, self-employed people need to provide 2 years of their Canada Revenue Notice of Assessments
Down Payment
Must be in a Canadian bank account for a minimum of 30 days prior to closing.
Thomas Cook

Keep Up To Date With Toronto's Real Estate Market
Every month we communicate with our readers to give them accurate insights and statistics about what's happening in the Toronto and GTA real estate markets.
Subscribe to our free monthly FYI Newsletter HERE.


Here are 5 proven ways to move safely and smartly towards your real estate buying goal...

  1. Download a free copy of my Ultimate Home Buyer’s Guide book
Find out everything you need to know about buying a Toronto house or condominium. Instead of randomly searching all over the internet, jump start your home buying experience and get a wealth of expertise and experience in one place.

Download your Guide here
  1. Get a custom listings search set up for you and receive targeted listings daily
If this list is not specific enough for you, we can put together a custom list of homes.  Maybe you want only 2-bedroom condos in specific neighbourhoods, or only semi-detached houses, or even a certain school zone. 
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed.  Just leave some search criteria here
  1. Set up a step-by-step plan with the best ways to get to your home buying goal
At the beginning of the home buying journey, often the picture of what the end result might look like is a little ‘fuzzy’.
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.

To arrange your no-obligation Starbucks Strategy Session, click here.
  1. Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
Start getting educated about what your condo likes and dislikes are. 
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
  1. Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Home buyers have come to us after trying to work with another agent saying “I don’t think he even knows exactly what I’m looking for and I’ve got questions he doesn’t have the answers to”.
Don’t make the same mistake.  Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.