Sep 28, 2026
A recent Royal LePage survey found that 9 in 10 newcomers say home ownership is an important part of feeling established in Canada, and 80% see it as a good financial investment.
But most aren’t there yet. Among newcomers who don’t currently own a home, 76% say they intend to buy in Canada — nearly half within two years. Ask them what’s standing in the way, and 61% point to the same thing: saving for a down payment.
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Here’s how many newcomers actually own a home right now, why saving is the biggest sticking point and what options exist for those who aren’t ready for a traditional mortgage yet.
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How many newcomers actually own a home right now?
One third (33%) of newcomers currently own their primary residence, while 66% don’t own any property at all. Ownership climbs the longer someone has lived in Canada — 22% among newcomers here less than five years, rising to 45% among those here 5 to 9 years. By the fifth year after admission, economic-class immigrants report home ownership rates comparable to Canadian-born individuals, according to Statistics Canada.
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What’s actually standing between newcomers and a down payment?
Among newcomers who plan to buy, 61% cite saving for a down payment as their biggest barrier, followed by securing more stable or higher-paying employment (50%), learning the Canadian homebuying process (28%) and building Canadian credit history or score (27%). Respondents could choose more than one answer, which is why the barriers stack rather than compete.
Why Canadian credit history is such a common sticking point
Many newcomers arrive with strong finances and little or no debt, but without the Canadian credit history lenders typically look for — and some come from countries where cash, not credit, handles most transactions.
The Canada Mortgage and Housing Corporation (CMHC), a Crown corporation, runs a Newcomers program specifically for this gap: Eligible permanent and non-permanent residents can qualify with a minimum down payment of 5% and a credit score of 600 on at least one borrower, and where Canadian credit history is limited, CMHC may accept an international credit report or a reference letter from a financial institution in the applicant’s home country instead.
What if you’re not ready for a traditional mortgage yet?
One in five newcomer homeowners (20%) bought their first Canadian home through a rent-to-own program, and 52% of newcomers overall say they’re familiar with rent-to-own as a path to ownership. These programs let a buyer live in a home while working toward the purchase, using the rental period to build savings, establish credit and strengthen their financial profile before applying for a mortgage.
What should newcomers do first?
Nearly three quarters (73%) of newcomer homeowners worked with a real estate agent to buy their home, making that a common starting point for understanding local prices, financing options and the closing process. From there, it’s worth building Canadian credit deliberately rather than by accident, looking into whether CMHC’s Newcomers program terms fit your situation, and pricing out more than one city — the survey notes homes under $500,000 are still common in Halifax, a very different budget than Toronto or Vancouver.
Saving up for a down payment and building your Canadian credit history are two completely different beasts, and each one takes its own sweet time to work out. The trick? Don’t wait around for your bank account to hit a magic number before you even start thinking about your credit score, or vice versa. Getting a head start on both right from day one is the fastest way to turn that “for rent” sign into a set of keys to your own front door.
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Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
