Moving to Canada is an exciting step, and for many newcomers, buying a home in Alberta is part of building a stable future. The good news is that you don’t need to be in Canada for years to qualify for a mortgage. Many newcomers are able to buy a home sooner than they expect.
In this guide, I’ll explain how buying a home in Alberta works for newcomers, what lenders look for, and how a mortgage broker like me can help. (If you’d rather skip the read and talk with me instead, send me a message.)
Can Newcomers Buy a Home in Alberta?
Yes — many newcomers are eligible to buy a home in Alberta, even if they don’t yet have a long Canadian credit history. Permanent residents, work permit holders, and recent arrivals with stable employment in Canada may all qualify. Some lenders offer newcomer mortgage programs that are designed specifically for people who are new to the country.
How Much Down Payment Do You Need?
The minimum down payment in Canada depends on the purchase price of the home. In most cases, buyers need at least 5% down for homes priced up to $500,000. For homes priced above $500,000 and below $1 million, 10% is required on the portion over $500,000. Homes priced at $1 million or more typically require a minimum 20% down payment.
Many newcomers use personal savings, funds brought from another country, or a gifted down payment from an immediate family member. Gifted down payments are very common and allowed by many lenders, as long as they are properly documented. A mortgage broker like me can help confirm which options work best for your situation.
What If You Don’t Have Canadian Credit Yet?
Not having Canadian credit is very common for newcomers, and it doesn’t automatically stop you from buying a home. Some lenders may accept international credit reports or alternative forms of credit history, such as proof of rent payments, utility bills, phone bills, or bank statements showing consistent savings and income. While building Canadian credit is important for the long term, you may not need perfect credit to get started.
What Documents Will You Need?
While every lender is different, most will ask for similar documents during the mortgage process. This usually includes:
- government-issued identification
- a permanent resident card or work permit
- proof of employment such as an employment letter or job contract
- recent pay stubs
- bank statements
- proof of your down payment
Getting these documents ready early can help avoid delays and make the process much smoother.
Extra Costs to Budget for in Alberta
In addition to your down payment, it’s important to budget for closing costs. These often include legal fees, a home inspection, property tax adjustments, title insurance, and moving costs. One advantage of buying in Alberta is that there is no provincial land transfer tax, which can help keep upfront costs lower compared to some other provinces.
Why Work With a Mortgage Broker as a Newcomer?
A mortgage broker works for you, not the bank. For newcomers, a broker can access multiple lenders, including those that offer newcomer programs, and explain your options in clear, simple terms. A broker like me (Hi, I’m Josh Tagg!) can also help you understand what you qualify for before you start house hunting and create a plan to improve your mortgage options over time. This guidance can be especially valuable if you’re unfamiliar with how mortgages work in Canada.
Buying a home in Alberta as a newcomer to Canada is possible and often easier than people expect. The key is getting the right advice early, understanding your options, and having a clear plan. As a mortgage broker in Alberta, I have extensive experience helping folks new to Canada find their way to homeownership. If you’re new to Canada and thinking about buying a home, a short conversation with me can help you understand what’s realistic and what your next steps should be.
