Can You Get a Mortgage Without PR in Canada?

For many newcomers, temporary residents, and non-permanent workers in Canada, homeownership feels like a distant goal. One of the first questions they face is whether they can get a mortgage without having Permanent Residency (PR). The answer is yes, but with some key caveats.

Whether you’re on a work permit, here on a temporary visa, or just landed in Canada, there are mortgage options available. But they often come with higher down payment requirements, stricter documentation, and limited lender flexibility. For those who don’t yet qualify, rent-to-own programs offer a viable path to homeownership while building financial eligibility.

This article breaks down how non-PRs can access mortgages, what challenges to expect getting a mortgage pre-approval without PR, and how mortgage alternatives like Requity Homes are helping more Canadians get the keys to their first home.

Key takeaways

You can get a mortgage in Canada without being a permanent resident, but lender conditions are more demanding.
Most traditional lenders require at least 20%–35% down and solid proof of income.
Mortgage access depends heavily on your visa type, credit history, and Canadian employment stability.
If you're not yet mortgage-eligible, rent-to-own programs, like those offered by Requity Homes, can be a flexible alternative.

What are non-permanent residents in Canada?

A non-permanent resident in Canada is someone who has been authorized by the Government of Canada to live in the country for a limited period of time but does not have permanent resident status or citizenship. Non-permanent residents are often in Canada for work, study, or temporary personal reasons.

Non-permanent residents may include:

Temporary foreign workers (TFWs) on valid work permits
International students with study permits
Visitors or individuals on temporary resident visas
Refugee claimants or people awaiting status decisions
Foreign nationals purchasing property in Canada

These individuals have legal status in the country, but their stay is typically tied to a time-limited permit or visa. Unlike permanent residents, they are not eligible for many Canadian government programs or mortgage insurance products. This limited status impacts their ability to access traditional financing from Canadian mortgage lenders.

Why PR status matters when applying for a mortgage

Lenders assess the risk of lending based on many factors, and one of them is legal residency status. PRs and Canadian citizens are considered low risk because they:

Can access insured mortgages (with as little as five percent down)
Have stable immigration status
Are less likely to leave the country unexpectedly
Are more likely to have established Canadian credit history

Non-PR applicants, including work permit holders or foreign buyers, are considered higher risk. As a result, they face stricter qualification criteria, higher down payment requirements, and fewer lending options.

Can non-permanent residents get a mortgage in Canada?

Yes, it is possible to get a mortgage in Canada without being a permanent resident. However, most Canadian banks and lenders will require a stronger application overall.

People who may qualify for a mortgage without PR include:

Temporary foreign workers (TFWs) with valid work permits
International students (in rare cases, and usually with a co-signer)
Foreign nationals looking to purchase investment property

Approval depends on the lender and your financial profile. Work permit holders who are employed full-time in Canada are more likely to be approved than someone with no Canadian income or credit history.

Read more about can immigrants buy a house in Canada

What you need to qualify for a mortgage without PR

If you are applying for a mortgage as a non-PR, you will need to meet several conditions. The specific requirements vary by lender, but in general, you will need:

A larger down payment: Most lenders require 20 to 35 percent of the purchase price and proof of funds
Proof of stable income: Ideally from a full-time job in Canada
Credit history: Canadian credit is preferred, but international reports may be considered
Valid immigration status: Such as a work permit or student visa
Supporting documents: Including recent pay stubs, tax returns, bank statements, and proof of status in Canada

Non-PR applicants are not eligible for mortgage insurance from CMHC, Sagen, or Canada Guaranty. As a result, only conventional mortgages are available, which increases the required down payment.

Mortgage options for non-PRs based on residency type

Mortgage options in Canada if you are on a work permit

You may qualify for a mortgage if you:

Have been employed in Canada for at least three to six months
Hold a valid work permit that extends at least 12 months into the future
Can provide documents such as pay stubs, employment letters, and tax returns

Some lenders will offer better terms if you plan to apply for PR soon or are already in the process.

Mortgage options in Canada if you are an international student

Getting a mortgage as a student is difficult. Most lenders will only consider applications if you:

Have a Canadian co-signer or guarantor
Provide a down payment of at least 35 percent
Can show strong financial support or part-time income

Students are often seen as temporary residents with limited income and credit history, so approval is rare.

Read more about fastest way to save for a downpayment

Mortgage options in Canada if you are a foreign buyer with no Canadian income

You can still purchase property, but you will be treated as an investor. Expect the following:

Minimum down payment of 35 to 50 percent
Higher interest rates from lenders
Additional taxes such as the Non-Resident Speculation Tax (25 percent in Ontario and British Columbia)
No access to mortgage default insurance. Mortgage insurance from providers like CMHC is not available to non-residents without Canadian income or PR status.

These restrictions often make it harder for non-PR buyers to finance a home through traditional means.

What types of lenders work with non-PR applicants

The type of lender you choose will significantly impact your chances of approval. Here is how different lenders approach non-PR borrowers:

Big banks tend to be conservative. They require strong credit, a high down payment, and full documentation.
Credit unions may be more flexible, especially smaller or regional ones that work closely with newcomers.
Private lenders accept more risk but charge higher interest rates and fees. These can be an option if your application has been declined elsewhere.

Working with a mortgage broker or mortgage specialist can help you find lenders who specialize in financing for newcomers or non-PR applicants.

Extra costs and risks when buying a house without PR

If you are not a permanent resident, buying a home in Canada can come with additional financial burdens.

Here are some of the key risks and costs to plan for:

Higher down payment requirements due to lack of mortgage insurance
Non-Resident Speculation Tax (NRST) of 25 percent in Ontario and British Columbia
No access to insured mortgage products from CMHC, Sagen, or Canada Guaranty
Currency exchange risks if your income or savings are in a foreign currency
Legal and tax complexity, especially if you are purchasing from outside the country and must comply with Canadian law

These factors should be considered when evaluating whether to purchase now or wait until you obtain PR.

Rent-to-own as a path to homeownership without PR

If you are not yet eligible for a mortgage, rent-to-own offers an alternative way to purchase residential property in Canada. Rent-to-own has many advantages for newcomers which allows you to rent a property with the option to buy it later, giving you time to save for a down payment and improve your financial profile.

How rent-to-own works:

You apply to be pre-qualified based on your income, savings, and goals
A rent-to-own company purchases the home on your behalf
You move in and pay monthly rent
A portion of your rent is set aside each month as a savings contribution toward your future down payment
You can buy the home later at a predetermined price

This structure gives you time to build credit and get mortgage-ready while already living in your future home.

Tip: Use this rent-to-own monthly payment calculator to estimate your monthly payments

Requity Homes: Rent-to-own solution for non-permanent residents

Requity Homes is a rent-to-own provider that serves Canadians who do not qualify for traditional mortgages, including those without PR.

Rent-to-own is available across Canada

Ontario: Cities such as Thunder Bay, Sudbury, North Bay, and Sault Ste. Marie.
Alberta: Cities such as Calgary, Edmonton, Red Deer, and Lethbridge.
Saskatchewan: Cities such as Regina, Saskatoon, Prince Albert and Moose Jaw.
Manitoba: Cities such as Winnipeg, Brandon and Steinbach.

Requity Homes program steps:

Apply to pre-qualify online with no credit impact
Submit documents to verify your income, savings, and credit
Work with a real estate agent to choose a home listed for sale or browse rent-to-own homes online (Requity will buy it for you)
Move in and pay rent, with a portion saved monthly toward your down payment
Buy the home when you are ready, anytime during the three-year term

Key features of Requity’s rent-to-own program:

Minimum deposit of $5,000 or 2 percent of the home price (whichever is higher)
Monthly rent includes a built-in savings amount for your down payment
You can purchase the home at a set price anytime during the lease term
Requity covers legal fees and land transfer taxes at the time of purchase
Accepted credit scores start as low as 500
Open to newcomers, self-employed workers, and non-traditional incomes

This model is designed to help those without PR start working toward homeownership while living in the home they plan to buy.

Who rent-to-own is best for if you do not have PR

Rent-to-own is a strong option if you:

Are a newcomer without Canadian credit
Work as a contractor, freelancer, or self-employed person
Do not have PR but plan to stay in Canada long-term
Need time to save for a larger down payment
Want to avoid rising housing prices while you become mortgage-eligible

Rather than waiting on the sidelines, rent-to-own gives you access to the housing market while you build toward full ownership.

How to prepare for a mortgage if you do not have PR

If your long-term goal is to qualify for a traditional mortgage, you can take steps now to improve your eligibility:

Establish Canadian credit by using a secured credit card and paying bills on time
Maintain stable employment and keep records of your income
Save aggressively for a larger down payment to reduce the loan amount
Organize your documentation, including your visa, income records, and Canadian bank account statements
Consult a mortgage broker to explore lenders who work with non-PR clients

With the right preparation, you can increase your chances of qualifying for a mortgage, even before receiving permanent residency.

Start your path to homeownership in Canada without PR

Buying a home in Canada without permanent resident status is possible, but it requires more planning, more documentation, and more upfront capital. If you are not yet eligible for a mortgage, you still have options.

Rent-to-own is a practical path forward for those without PR. It allows you to start living in your future home while working toward financial readiness.

Requity Homes offers a rent-to-own solution that supports newcomers, temporary residents, and self-employed workers in their journey to homeownership. If you are looking for a way to enter the housing market without waiting for PR, this could be your next step.

Start the pre-qualification process with Requity Homes - it takes only minutes to get started and there’s no commitment to get started

Frequently asked questions (FAQs) for non-permanent residents buying property in Canada

What is the Prohibition on the Purchase of Residential Property by Non-Canadians Act?

This federal law restricts certain non-Canadians from buying residential property in Canada. As of 2023, foreign nationals without PR or citizenship are prohibited from purchasing residential property in most urban centres. Exemptions apply for temporary residents with valid work permits who meet specific criteria. Always consult a legal expert before attempting to purchase property as a non-PR.

Are non-permanent residents required to pay property taxes?

Yes. All property owners in Canada, including non-permanent residents, are required to pay annual property taxes to the local municipality. The amount depends on the property value and location.

What is the Non-Resident Speculation Tax (NRST)?

The NRST is a 25 percent tax applied to the purchase of residential property by foreign nationals in certain provinces, such as Ontario and British Columbia. This tax is separate from property taxes and must be paid at the time of purchase.

Can I get a mortgage from TD Bank or RBC Royal Bank as a non-permanent resident?

Some major banks like TD Bank and RBC Royal Bank offer mortgage products for work permit holders or non-residents, but approval criteria can be strict. You will typically need a 35 percent down payment, proof of Canadian income, and strong documentation. A mortgage broker may help find lender programs suited to your status.

What are non-resident mortgages?

Non-resident mortgages are designed for foreign buyers or individuals without PR who want to buy Canadian property. These mortgages usually require higher down payments, limited financing options, and additional tax disclosures. Not all lenders offer them.

Can I use an international credit report when applying for a mortgage?

Some lenders may accept a credit report from an international credit bureau if you do not have a Canadian credit history. You may need to provide documentation from a recognized bureau, such as Equifax or TransUnion in your home country.

Are there specialty programs for newcomers?

Yes. Some lenders and rent-to-own providers offer specialty programs for newcomers and non-permanent residents, including low down payment options, support for international credit, and rent-to-own models like Requity Homes.

How do foreign transaction fees affect home purchases?

If you are transferring funds from outside Canada, your bank or credit card provider may charge foreign transaction fees. Use a currency exchange specialist to reduce costs when wiring your down payment or monthly payments.

Can I buy an owner-occupied property without PR?

Yes, if you are living in the home and meet lender criteria, you may purchase an owner-occupied property. Investment properties may face stricter rules and higher taxes for non-PR buyers.

Can I use IMM Form #1442 as proof of status?

Yes. IMM Form #1442 (Study Permit or Work Permit) is often required by lenders as proof of your legal status in Canada. It shows your eligibility to work or study and may support your mortgage or rent-to-own application.

What is a reverse mortgage and can I qualify as a non-permanent resident?

A reverse mortgage is a financial product for homeowners aged 55 or older, allowing them to borrow against home equity without monthly payments. It is not typically available to non-permanent residents.

How does the CRA treat non-PR property owners?

The Canada Revenue Agency (CRA) requires non-residents to file taxes on rental income and report gains on property sales. You may be subject to withholding taxes and must comply with CRA rules on non-resident ownership and income.

Can I apply for a mortgage as a Canadian Permanent Resident?

Yes. Canadian Permanent Residents have access to the same mortgage options as citizens, including insured mortgages, lower down payments, and government-backed loan programs.

Can You Get a Mortgage Without PR?