Is it possible to get a mortgage without a credit history in Canada?

Obtaining a mortgage without a credit history in Canada is not only possible but also accessible through a variety of specialized programs and alternative financing options. Although traditional banks typically require a minimum credit score of 620 to 680, there are numerous options for those who have just arrived in Canada or have not yet had time to establish a credit history in the country.

The key point is that no credit history does not mean bad credit history. These are fundamentally different situations, and lenders understand the unique challenges faced by newcomers and young adults. According to CMHC, special programs for newcomers allow them to obtain mortgages with a minimum down payment of 5% even without a Canadian credit history.

Statistics show the growing importance of this market segment. Alternative lenders and specialized programs are gaining popularity as traditional banks lose market share. From 2019 to 2022, the share of large banks in mortgage lending fell from 67% to 63%, with alternative lenders actively filling this niche by offering more flexible terms.

Programs for newcomers from major financial institutions

Programs from major banks

RBC Royal Bank

RBC Royal Bank offers one of the most comprehensive programs for newcomers to Canada. The bank provides mortgage financing to individuals with minimal Canadian employment or credit history, including special programs with no minimum income requirements.

The RBC Newcomer Advantage Program includes the option of a credit limit of up to $15,000 on a new RBC credit card, which helps you quickly start building your credit history.

  • The bank serves customers in over 200 languages and has mortgage specialists who speak various languages, including Ukrainian.
  • This is especially important for understanding complex financial terms and lending conditions.
  • RBC also accepts students and workers with work permits if a lawyer has confirmed their eligibility to purchase residential property in Canada.

BMO Bank of Montreal

BMO Bank of Montreal offers special terms for new Canadians through its Newcomer Mortgages program. The bank accepts limited or no Canadian credit history, offering competitive rates and the longest rate guarantee among Canada's major banks — 130 days.

  • BMO also offers up to $4,100 cash with a new qualifying mortgage until August 29, 2025.
  • The bank works with permanent residents who have immigrated within the last five years and individuals with valid work permits.
  • BMO provides guidance in the client's preferred language and specialized advice on the Canadian housing market.

No credit history mortgage in Canada

CIBC programs for newcomers

CIBC offers three different programs for newcomers:

  • Standard Newcomer Program
  • PLUS Program for those returning to Canada
  • Foreign Worker Program

Each program has its own requirements and benefits, allowing you to choose the best option for your specific situation.

The CIBC Newcomer to Canada PLUS Program is especially valuable for professionals who are working to rebuild their careers in Canada. It takes into account international experience and qualifications, even if the individual does not yet have a stable Canadian income.

Mortgage insurance and support programs

CMHC Newcomers

CMHC (Canada Mortgage and Housing Corporation) offers a special CMHC Newcomers program for permanent and temporary residents. The program allows you to obtain mortgage insurance with a minimum down payment of 5% and recognizes alternative methods of establishing creditworthiness.

  • International credit reports are accepted.
  • Letters of reference from financial institutions in the country of origin can be used.
  • Alternative methods of proving solvency are accepted.

The minimum credit score is 600, but this can be offset by other financial evidence.

Sagen New to Canada Program

Sagen (formerly Genworth Canada) offers the New to Canada Program for those who have immigrated or moved to Canada within the last 5 years.

The program allows you to purchase real estate with an initial down payment of 5% and covers up to four properties, if one of them is occupied by the owner.

Down payment requirements:

  • Up to $500,000 — 5%
  • From $500,000 to $1,500,000 — 5% on the first $500,000 + 10% on the remainder

Alternative lenders and specialized solutions

B-lenders

B-lenders occupy an intermediate position between banks and private lenders. Examples: Home Trust, MCAN Home, First National. They work with clients who do not meet standard banking requirements.

Advantages of B-lenders:

  • Fast application approval (often within 24 hours)
  • Flexible income assessment criteria
  • Acceptance of alternative proof of income
  • Consideration of international experience and assets

Home Trust Company is one of Canada's largest B-lenders, operating in all provinces and with offices in Vancouver, Calgary, Montreal, and Halifax.

MCAN Home offers unique programs where rent payments from roommates or family members can be counted as income.

Private lenders

Private lenders such as Alpine Credits and Citadel Mortgages provide loans based on property value rather than credit history.

  • Approval is possible even with a 500 or lower credit score
  • Interest rates are typically 6.99%–12.99%
  • Down payments of 20% or more are required

Strategies for proving creditworthiness without a Canadian credit history

International credit reports

CMHC and other lenders recognize international credit reports. Some banks, such as HSBC, specialize in using international ratings.

The report must include:

  • Payment history
  • Open accounts
  • Overall credit rating

Alternative proof of solvency

  • Bank statements for the last 6–12 months
  • Employer references
  • Proof of utility and rent payments
  • Insurance payments

Letters of recommendation from financial institutions

CMHC accepts such letters, which must include:

  • Length of relationship with the bank
  • Financial products used
  • Payment history
  • Contacts for verification

Role of co-signers in obtaining a mortgage

Co-signing mechanism

The co-signer assumes legal responsibility for payments if the primary borrower is unable to make them.

Requirements:

  • Credit score of 660+ (preferably 680+)
  • Stable income and low debt load
  • Canadian citizenship or permanent residence

Co-signer vs. co-borrower

  • Co-signer: has no ownership rights, only guarantees the loan.
  • Co-borrower: has equal rights of ownership and responsibility.

Quick credit history building

First steps

  • Open a bank account
  • Register your mobile phone with credit bureaus

Secured credit cards

This is the most effective way to build a credit history.

Advantages:

  • Guaranteed approval
  • Reporting to Equifax and TransUnion
  • Conversion to an unsecured card after 6-12 months

Recommendations:

  • Balance below 35% of the limit
  • Full payment every month
  • Automatic payments to avoid late payments

Reporting rent

Services such as Rent Reporter and Front Lobby allow you to include your rent payments in your credit history.

Timeframe and expectations

  • Minimum 3-6 months of activity to obtain a credit score
  • A score of 580 is considered “satisfactory”
  • Reaching 620-680 usually takes 12-18 months

Cost and terms of alternative lending

Rates:

  • B-lenders: +1-3% to standard bank rates
  • Private lenders: 6.99%-12.99%

Additional costs:

  • Brokerage fees: 1-2%
  • Processing: $500-1,500
  • Property appraisal: $300-500
  • Legal services: $1,000-2,000

Strategies for transitioning to traditional lending

  • Timely payment of all obligations within 12 months
  • Raising your credit score to 680+
  • Stabilizing your income and reducing your debt load
  • Refinancing after 12-24 months

Conclusion

Obtaining a mortgage without a credit history in Canada is possible thanks to specialized programs, alternative lenders, and sound financial strategies. Alternative financing may be more expensive, but it serves as a bridge to traditional mortgages and helps make the dream of home ownership a reality.