Royal LePage survey reveals most prospective newcomer buyers struggle to save for a down payment
Newcomers to Canada arrive with ambition, savings, and in many cases a clear goal: owning a home. What they often underestimate is how much the Canadian mortgage system will ask of them before they get there.
Nine in 10 newcomers to Canada say homeownership is important to their sense of being established in the country, yet fewer than one in three currently own their primary residence. Those are the central findings of a recent Royal LePage survey of 1,400 newcomers, conducted by research firm Burson between August 25 and September 8.
Among non-owning newcomers who intend to buy, 76% say purchasing a Canadian home remains a priority. Nearly half (48%) plan to do so within two years.
The dominant obstacle is financial as 61% cite saving for a down payment as their biggest barrier, followed by securing more stable or higher-paying employment at 50%, and building a Canadian credit score or credit history at 27%.
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Credit gaps present a clear broker opportunity
For many newcomers arriving from countries where cash-based transactions are the norm, the absence of a Canadian credit file is the sharpest hurdle.
Brokers play a decisive role in directing these clients toward alternative lending options and newcomer-specific mortgage solutions that fall outside the scope of conventional institutional lending.
Canada Mortgage and Housing Corporation (CMHC) provides mortgage loan insurance through its Newcomers program for eligible permanent and non-permanent residents authorized to work in Canada.
Where Canadian credit history is limited or absent, CMHC may accept an international credit report or a financial reference from the borrower's country of origin as an alternative basis for establishing creditworthiness.
Rent-to-own programs offer a further pathway for clients who need more time to qualify.
One in five newcomer homeowners surveyed said they purchased their first Canadian property through such an arrangement, allowing participants to build savings and establish local credit while already living in the home they intend to buy.
"Many newcomers arrive in Canada with strong incomes, decent savings and a clear goal of becoming homeowners, but they may not yet meet every requirement of the traditional mortgage system," said Amy Ding, founder and CEO of Requity Homes in Canada.
Daren King of National Bank highlighted that while several major markets posted monthly declines in August, cities such as Quebec City, Montreal, and Toronto recorded gains, reflecting varied conditions across the country.https://t.co/rm5EMleWQd
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 21, 2026
Where newcomers settle — and why geography matters to brokers
Ontario attracted 47% of newcomers on initial arrival, followed by Quebec (16%), British Columbia (13%), and Alberta (12%).
Among those who have already purchased a home, 68% bought in the city where they first settled, underscoring how community ties anchor the purchase decision. That pattern concentrates demand in specific urban centres, with particular pressure in markets where Canadian housing affordability remains among the most constrained in the developed world.
Nearly four in 10 newcomers in British Columbia and Ontario said they had anticipated buying here would be harder than in their home country.
Ownership rates climb steadily with time in-country. Among newcomers with five to 10 years of Canadian residency, 45% own a home, more than double the 22% rate for those who arrived within the past five years.
According to Statistics Canada, economic-class immigrants reach homeownership rates comparable to Canadian-born individuals by their fifth year after admission.
As analysts have noted, the potential departure of skilled newcomers from Canada carries measurable risk for mortgage and housing sector demand, particularly in urban centres where this cohort has historically driven first-time purchase activity.
Under Canada's current Immigration Levels Plan, permanent resident admissions are set at 380,000 annually through 2028, down from earlier targets of 500,000. That arrows the incoming pipeline even as the existing newcomer population continues its gradual march toward ownership readiness.
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