Start with a Secured Card

Open a secured credit card within your first month in Canada. Most major banks offer newcomer banking packages with secured cards requiring a $500-$1,000 deposit.

• No credit history required
• Builds credit from day one
• Convert to regular card after 6-12 months

Keep Utilization Low

Use less than 30% of your available credit. If you have a $2,000 limit, keep balances below $600. Pay in full each month to avoid interest charges.

• Ideal utilization: under 30%
• Pay full balance monthly
• Request limit increases after 6 months

Build for 6-12 Months

Most lenders want to see 6-12 months of consistent Canadian credit history. Some newcomer programs accept as little as 3 months with larger down payments.

• Minimum: 3-6 months for specialty programs
• Recommended: 12+ months for best rates
• Add second account after 6 months

How long does it take to build credit as a newcomer to Canada?

Most lenders require at least 6-12 months of Canadian credit history. Start building credit immediately upon arrival with a secured credit card or by becoming an authorized user on someone's account. You can apply for specialized newcomer mortgage programs with as little as 3-6 months of credit history.

What documents do newcomers need for a Canadian mortgage?

Newcomers typically need: work permit or PR card, SIN, employment letter, recent pay stubs (2-3 months), T4 slip or Notice of Assessment, 90-day bank statement history showing regular deposits, and proof of down payment source. Requirements vary by lender and program.

Can I get a mortgage in Canada without Canadian credit history?

Yes, through specialized newcomer mortgage programs. Some lenders accept foreign credit reports, employment history, and larger down payments (15-35%) in lieu of Canadian credit history. These programs often have slightly higher rates but provide access to homeownership sooner.

What credit utilization ratio is best for mortgage approval?

Keep credit card balances below 30% of your limit for best results. Under 30% utilization demonstrates responsible credit management. Paying down balances to below 10% before applying can further improve your profile with lenders.

How does employment length affect newcomer mortgage approval?

Most traditional lenders prefer 6+ months of Canadian employment at the same employer. Alternative lenders may accept 3+ months. Some programs consider foreign employment history with proper documentation. Having a permanent, full-time position strengthens your application significantly.

Can I use my foreign credit history for a Canadian mortgage?

Some lenders accept credit reports from the US, UK, and other countries. You'll need to provide a translated credit report from your home country. This is most common with newcomer-specific programs. Having Canadian credit history, even minimal, alongside foreign credit strengthens your application.