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The short answer
Yes. Work permit holders can get mortgages in Canada, and mortgage insurer Sagen's New to Canada programme accepts buyers with a valid work permit with as little as 5% down on homes up to $500,000. The federal minimum is 5% of the first $500,000 and 10% of the part above, insurance is usually needed below 20% down, and a separate federal rule means you need at least 183 days left on your permit when you buy.
The short answer
Nothing in Canadian law stops a lender giving a mortgage to someone on a work permit. Whether a particular lender will do so depends on its own policy and, if your deposit is under 20%, on the mortgage insurer's rules. Before any of that, you must be allowed to buy at all: the federal ban on non-Canadians buying homes has an exception for work permit holders that depends on how long your permit has left. See the foreign buyer ban and work permits.
Minimum down payment
The Financial Consumer Agency of Canada (page modified 15 October 2025) sets out the minimums for everyone:
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,000 to $1.5 million | 5% of the first $500,000 plus 10% of the part above $500,000 |
| $1.5 million or more | 20% of the price |
Below a 20% down payment, mortgage loan insurance is typically required. FCAC gives premiums of 0.6% to 4.5% of the mortgage amount, falling as the deposit rises, and notes that Ontario, Manitoba and Quebec charge provincial sales tax on the premium, which cannot be added to the loan and must be paid when the mortgage is arranged. FCAC also says a lender may ask for a larger deposit if you are self-employed or have a poor credit history, and that the minimum down payment normally has to come from your own funds.
A worked example
Example only. Chinedu, on an open work permit in Ottawa, wants a $600,000 townhouse.
- 5% of the first $500,000 = $25,000
- 10% of the remaining $100,000 = $10,000
- Minimum down payment = $35,000, leaving a $565,000 mortgage
- Because the deposit is under 20%, the mortgage needs insurance, and in Ontario the sales tax on the premium is paid up front
What a newcomer insurance programme asks
Mortgage insurers run programmes for recent arrivals. Sagen's New to Canada page (modified 25 June 2026) is one published example. It says:
- Who: buyers who have recently immigrated or relocated to Canada with a valid work permit or permanent residency.
- Deposit: 5% for homes of $500,000 or less; 5% of the first $500,000 plus 10% of the rest for homes above $500,000 and below $1.5 million.
- Credit history: if your Canadian credit report is thin, one of an international credit bureau report, 12 months of on-time payments such as rent, utilities, phone or car insurance shown on statements, or a reference letter from a recognised financial institution. At 90% loan-to-value or less, six months of main-account bank statements.
- Income: standard income and employment verification.
Other insurers and lenders have their own rules; your lender or broker will tell you which insurer it uses. For an overview, see newcomer mortgage programmes in Canada.
What lenders look at on a work permit
Beyond the insurer's checklist, expect questions about:
- Your permit's expiry date and your plans: a PR application in progress, an employer-specific permit, or an open permit.
- Your job: a written offer or employment letter, pay slips and how long you have been in the role.
- Your deposit's source: statements showing the money building up, or a gift letter if family is helping. See parents in Nigeria gifting a down payment.
- Your credit: a Canadian file, or the alternatives above. Rent paid on time in Canada is useful evidence.
Costs beyond the deposit
Lenders check that you can close, not only that you have the deposit. Budget for:
- Land transfer tax, plus any municipal tax where it applies, and any first-time buyer refund you qualify for.
- Legal fees, title insurance and the home inspection.
- The provincial sales tax on the insurance premium in Ontario, Manitoba and Quebec, paid at closing.
- Moving costs and a cushion for the first months, especially if you also support family at home.
The 183-day rule
The federal regulations on non-Canadian buyers (current to 30 September 2026) let a work permit holder buy if they have 183 days or more of validity left on their permit or work authorisation on the date of purchase, and have not bought more than one residential property. If your permit is close to expiry, renew it first; a mortgage approval does not help if the purchase itself is not allowed.
What to check first
- Days left on your work permit on the expected closing date.
- Your deposit against the FCAC minimum, plus closing costs and the insurance premium tax if you are in Ontario, Manitoba or Quebec.
- Which credit evidence you can produce: Canadian file, rent records, or a reference from a bank.
- Whether the lender's insurer runs a newcomer programme, and its current terms.
Where Pryme fits
If part of your deposit is savings held in naira or in dollars, pounds or euros, a Pryme account holds NGN, USD, GBP and EUR, and Swap shows the rate and the fee before you approve. Verifiable statements from VerifyDoc.ai help show where the money came from.
Questions people ask
Can I get a mortgage in Canada on a work permit?
Yes. Lenders set their own rules, and insurer programmes such as Sagen's New to Canada accept buyers with a valid work permit.
What is the minimum down payment on a work permit?
The federal minimum is the same for everyone: 5% up to $500,000 and 10% of the part above, rising to 20% at $1.5 million or more. Some lenders ask for more.
Do I need Canadian credit history for a mortgage?
Not always. Sagen accepts alternatives such as an international credit report, 12 months of on-time bill payments or a reference letter from a recognised financial institution.
How long must my work permit be valid to buy a home?
The federal regulations require 183 days or more of validity on the purchase date for the work permit exception to the foreign buyer ban.
Sources
- Financial Consumer Agency of Canada: Saving for a down payment (modified 15 Oct 2025) · accessed Oct 2026
- Sagen: New to Canada program (modified 25 Jun 2026) · accessed Oct 2026
- Justice Laws: Prohibition on the Purchase of Residential Property by Non-Canadians Regulations, SOR/2022-250 (current to 30 Sep 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.