Mortgages in Canada: Complete guide for expats 2026

Mortgages in Canada may not work in the same way as in your home country – so getting to grips with the local market is essential if you’ll need finance for your new Canadian property.

This guide looks at how to get mortgages in Canada as an expat or new arrival, including the types of mortgage commonly available, and the costs and limitations you should know about.

Understanding mortgages in Canada: Overview 🇨🇦

If you’re thinking of buying Canadian real estate it helps to have a basic understanding of Canada’s mortgage market.

• 66.5% of adults in Canada own their own home, and over 35% of Canadians have an outstanding mortgage to pay
• Average live mortgage rates in Canada are available on comparison sites like Rate Hub. At the time of research (January 2026), the best 5-year fixed mortgage rate in Canada is 3.84%
• Canadian banks offer a range of mortgage types for residential and investment purposes, as well as commercial loans
• Generally mortgages in Canada are either fixed rate or variable-rate mortgages – fixed rates have the same rate for a defined period before reverting to the standard bank rate, while variable rates change in line with the market
• Expats and new arrivals in Canada can take a mortgage from a Canadian bank, but the options may be more limited compared to long term and permanent residents, and Canadian citizens
• Some expats are not able to buy property in Canada under the Prohibition on the Purchase of Residential Property by Non-Canadians Act – if you are not a permanent resident and do not have a spouse who is a Canadian citizen confirm you can buy a place before beginning the mortgage process

This guide is for information only and does not constitute advice. Seek specific guidance from a licensed mortgage broker or another professional before committing to a Canadian mortgage.

Can you get a mortgage in Canada as a foreigner?

Yes. There’s no legal reason why you can’t get a mortgage in Canada as a foreigner.

Some banks offer specific mortgages and support to new arrivals in Canada. You may find you need to have a higher downpayment depending on whether you’re a foreign worker on a shorter term visa or a permanent resident.

You can also apply through a specialist broker which can be an easier route to compare your options as an expat buying a property in Canada.

Financial requirements for a mortgage in Canada

When you apply for a mortgage in Canada you’ll need to check the eligibility requirements thoroughly to see if the product is right for you.

Once you’ve found a suitable loan you can look into the documents needed to prove your financial status and credit history makes you a good candidate for the specific product.

Banks set their own rules about eligibility and creditworthiness, but you may find you need to provide documents and information such as the following:

• Proof of your identity and address – such as your Permanent Resident Card or valid work permit (IMM Form #1442)
• Proof of your income – you might need pay slips and you’ll be asked for an employment letter and bank statements confirming direct deposit
• Proof of your assets – bank statement are usually needed to check you have enough for a downpayment
• Proof of your financial affairs – you may be asked for recent statements of your savings, investments, loans, credit cards and lines of credit
• Proof of your credit history – if you’re not a Canadian resident or if you’re a new arrival, some banks can check your home credit history instead of your Canadian credit score
• Proof of the property you are buying – often a signed offer to purchase the home

Once you have a mortgage approved you’ll need a way to pay your upfront fees, deposit and regular repayments.

Using Wise for your international transfers can be a cheap option if you’re paying for your Canadian mortgage from a different country.

Wise uses the mid-market exchange rate and low, transparent fees for fast secure transfers which are deposited right into your Canadian bank account.

Mortgage rates in Canada in 2026

Banks and mortgage providers offer both fixed and adjustable rate mortgages which have variable rates depending on the term and other factors. This means that shopping around is still well worthwhile to find the best mortgage deal based on your unique needs.

Generally mortgages in Canada are offered on relatively short terms – 1 to 10 years for example, for fixed rate products or up to 5 years for variable rate mortgages. Rates change a lot so it’s a good idea to look on comparison sites like Rate Hub to find the best available option for your preferred term.

At the time of research (January 2026), the best available 5-year fixed mortgage rate in Canada is 3.84%.

How much can you borrow for a Canadian mortgage?

Different banks and providers will use slightly different metrics to decide on the value of a loan they may offer you. They’ll usually take into account factors like:

• Property value – you’re likely to find loans have a specific limit loan- to-value (LTV) limit which dictates the maximum mortgage available based on property price
• Your service ratios (GDS/TDS) – how affordable your repayments will be based on other commitments and outgoings
• Your credit score – banks may be more inclined to offer higher loans if you have a solid credit score
• Mortgage type and tenure – loans have their own criteria which can also influence the amount you’re able to borrow

Services like the Financial Consumer Agency offer affordability calculators which can help you figure out what level of loan might suit you.

💡 Bear in mind that banks may also take into account personal factors like your employment status, residency and legal right to reside in Canada when calculating the maximum amount of loan you can get.

Canadian mortgage calculator

There are several different types of tools out there which can help you figure out what mortgage you may qualify for, and what your costs would then ultimately be:

• TD Bank mortgage calculator – example of a bank’s own mortgage calculator tool, available from all major Canadian banks based on their own specific mortgage rates
• Rate Hub mortgage calculator – comparison website which offers a calculator you can use to estimate the costs of any mortgage based on the interest rate quoted

How to apply for a mortgage in Canada in 2026

You can apply for a mortgage in Canada from a bank or credit union, or through a broker who is able to connect you to a range of mortgage providers.

Before you apply you’ll want to make sure that the bank you’ve selected supports mortgages for properties of the type you want to buy. You’ll then also have to check eligibility based on your residency, income and available downpayment.

Once you’ve selected a bank a mortgage consultant will be assigned to help you navigate the application process. You can then submit your application including your supporting documents, and the bank will complete a credit check if needed.

Once your loan is approved you can proceed to closing on your new property.

Through a bank

Different banks have their own rules as to which customers they can support for a Canadian mortgage. The good news is that most major Canadian banks offer specific support for new arrivals in Canada buying a home.

• CIBC newcomer to Canada
• TD Bank newcomer to Canada
• RBC newcomer to Canada

Through a mortgage broker

You can also look for a mortgage through a mortgage broker through a service like Mortgage Professionals Canada. Whichever broker you select, make sure they’re properly registered with the financial services authority in your province.

Building credit for better mortgage terms

Some banks can use your foreign credit history to check your suitability for a loan. However this is not always an option. If you can’t use your home credit score you may need to build a Canadian credit history before applying for a mortgage.

You can use secured credit cards to help increase your credit score – be careful to spend moderately and always repay on time to get the best outcomes. You can also ensure your bills are in your name as this can help to improve your local credit.

Check your credit score with a provider like Equifax regularly to know how you’re getting on. Improvements to your score can start to show through in around 6 months.

Mortgage fees and costs in Canada

The costs of your mortgage can vary and may include multiple different fees. Here are some to know about:

📌 Fee type	💡 Details
Appraisal and inspection fees	Variable costs depending on the home’s value and location
Closing costs	Set aside 1.5% – 4.5% of the home’s value
Mortgage Default Insurance	Often , mandatory when a down payment is under 20%
Interest	Variable rates depending on loan details
Prepayment penalty	Fees can apply if you overpay or pay your mortgage off early
Currency conversion costs	If you’re paying your mortgage and deposit from abroad, currency conversion costs can mount up quickly

Types of mortgages in Canada

The key difference between different types of Canadian mortgage is the approach to setting interest rates and repayments:

• Fixed rate – rate and therefore repayment amount is fixed for an agreed term
• Variable rate mortgages – rate and repayment rate can change at any time
• Open vs closed mortgages – open mortgages allow overpayments and changes while closed may penalise them

Within these key mortgage types there are also different repayment policies – either paying back interest only, or interest plus principal.

Fixed rate

A fixed rate mortgage sets the rate you’ll repay for a certain length of time – often from 3 years to 5 years.

Variable rate mortgages

Adjustable rate mortgages do not have a fixed interest rate. Rates can go up or down which means your repayments may also change.

Open vs closed mortgages

An open mortgage might have a higher interest rate compared to a closed mortgage, but has more flexibility if you want to overpay or make changes to your terms. A closed mortgage is more fixed with penalties if you want to vary anything during the term.

Mortgages for investment properties

Buying a property is a popular way of investing in Canada. Bear in mind that if you’re not a permanent resident of Canada or eligible under another rule, you may be disallowed from buying property in Canada by law. This takes investing in property off the table.

Commercial mortgages

Commercial mortgages are offered through banks and specialist brokers, for businesses looking to acquire commercial properties. Commercial mortgages do not work in quite the same way a residential mortgage does, so you’ll need to get local advice if this is the mortgage type you prefer.

Help getting a mortgage in Canada

You may be able to get Canadian government backed mortgage and loan assistance – although this is not normally available if you’re not already a permanent resident of Canada. Here are a couple of options to look into:

• The Home Buyers’ Plan – take up to 60,000 CAD from your registered retirement savings plans (RRSPs) to buy a home
• GST/HST new housing rebate – claim back some of the GST/HST paid on new homes
• Home Buyers’ Amount (tax credit) – for first time buyers only

If you’re looking for good ways to manage the costs of your mortgage when paying from abroad, check out Wise.

Wise can offer low cost international payments which use the mid-market rate which can help you cut out unnecessary fees and pay less in the end.

Taxes and tax relief on mortgages in Canada

You will need to pay some ongoing costs when you own a Canadian property. Property taxes apply which can depend on where you live and the property type.

There’s not usually any tax relief for mortgages in Canada unless you’re renting out your property and therefore paying income tax on the rental you earn.

In this case you might find that some costs associated with the property can be tax deductible, such as interest on the mortgage.

Do you need property insurance to get a mortgage in Canada?

You may choose to get insurance in Canada for a number of reasons – and in some cases, certain types of insurance are mandatory.

If you’re buying a property with a relatively low downpayment, mortgage default insurance might be mandatory.

For example with TD Bank if you’re buying a home to the value of 500,000 CAD with a down payment of 5% you must take out insurance in case you are unable to meet the demands of your repayments.

How do mortgage repayments work in Canada?

When you arrange your mortgage you’ll choose to either repay interest only or interest and principal on a monthly basis. If you pay back only interest you must be able to repay the principal borrowed at the end of the mortgage term.

Some banks also let you make overpayments on their mortgage which can help reduce the term of your loan. This can have cost benefits – even a small overpayment can reduce the amount you may pay for your Canadian home overall.

💡 Bear in mind though that banks often put limits on the amount of overpayment you can make before you pay a penalty fee, particularly if you elect to take a closed mortgage which does not allow for flexibility in its terms. Choose an open mortgage if you would like to make overpayments instead.

Refinancing a mortgage in Canada

Some Canadian banks also offer refinancing options. This can be used if your fixed interest mortgage is ending and you want to open a new fixed product rather than reverting to the bank’s standard rate which may be higher. You might also choose to refinance if a different bank has a better offer available.

Check your specific mortgage before you consider this option, as there are often early repayment fees and penalties which you need to pay to be released from your initial mortgage. This may outweigh some or all of the benefits of refinancing.

Useful resources

Information last checked 22nd of January, 2026

• Wise – for international payments including mortgage payments and down payments
• Canadian government – mortgage introduction page and links
• Canadian bankers association – mortgage introduction page and links
• Rate Hub – compare mortgage options and get calculator tools
• Financial Consumer Agency – government agency provided affordability calculators
• TD Bank mortgage calculator – mortgage calculator tool
• Mortgage Professionals Canada – find a mortgage broker
• Equifax – check your Canadian credit history
• CIBC – mortgage services from a major Canadian bank
• RBC – mortgage services from a major Canadian bank
• Scotiabank – mortgage services from a major Canadian bank
• CIBC newcomer to Canada – specific support for new arrivals in Canada buying a home
• TD Bank newcomer to Canada – specific support for new arrivals in Canada buying a home
• RBC newcomer to Canada – specific support for new arrivals in Canada buying a home