When you arrive in Canada, your credit history from your home country does not follow you. Equifax Canada and TransUnion Canada have no record of you — and most standard mortgage products require 2+ years of Canadian credit history to qualify. This guide explains what to do from day one to build toward homeownership as efficiently as possible.

Why Canadian credit history starts at zero

Credit bureaus are country-specific. Equifax, TransUnion, and Experian each operate separate databases in each country. A 20-year impeccable credit history in the UK, India, or the United States does not transfer to Canada. This is not a reflection of your financial character — it is simply how the system works. The practical implication is that you are starting from scratch, and the clock on your Canadian credit history starts the moment you open your first Canadian credit account.

The five steps to building Canadian credit quickly

1. Open a Canadian bank account immediately

Choose a major Canadian bank (RBC, TD, Scotiabank, BMO, CIBC, National Bank) and open a chequing account within your first week in Canada. Begin depositing your income here and paying all your bills from this account. Lenders will want to see 90 days of consistent banking — start that clock now.

2. Get a secured credit card

A secured credit card requires a cash deposit (typically $500–$1,000) that becomes your credit limit. You use the card for everyday purchases and pay it off in full each month. Equifax and TransUnion report secured card activity as regular credit activity — your payment history and credit utilisation begin building your file from the first month. Most major Canadian banks offer secured cards specifically for newcomers.

3. Consider a credit-builder loan

Some Canadian credit unions offer credit-builder loans specifically designed for newcomers with no credit history. You make fixed monthly payments into a savings account, the lender reports those payments to the credit bureaus, and at the end of the loan term you receive the accumulated funds. The credit history built this way is identical to any other instalment loan history.

4. Put utilities and your phone plan in your name

Monthly bills in your name — mobile phone plan, internet, utilities — may be reported to credit bureaus depending on the provider. Ask your provider whether they report to Equifax or TransUnion. Even if only one or two providers report, each account in good standing adds to the breadth of your credit file.

5. Monitor your progress monthly

Borrowell (borrowell.com) provides a free Equifax credit score that updates weekly — it uses a soft inquiry that does not affect your score. After 6 months of active credit use, you will have a score. After 12 months, you will have meaningful history. After 24 months, you will meet the standard threshold for most conventional mortgage products.

CMHC's New to Canada Program
If you're ready to buy before reaching 24 months of Canadian credit history, CMHC's New to Canada program allows insured mortgage approval with alternative documentation — international credit references, international bank statements, and employment letters. Ask your mortgage broker specifically whether you qualify. This program is specifically designed for your situation.

Using foreign income to qualify for a Canadian mortgage

If you've recently arrived and are not yet earning Canadian income, some lenders will consider foreign income with appropriate documentation: recent payslips from your foreign employer, an employment letter, and in some cases tax returns from your country of origin. Requirements vary significantly by lender — this is where working with an experienced mortgage broker who has handled newcomer applications is valuable.

Immigration status and mortgage eligibility

Canadian citizens and permanent residents have full access to all mortgage products, including CMHC insured mortgages with 5% down.

Non-permanent residents (work or study permit holders) can access CMHC insured mortgages with 5% down if their permit has at least 12 months remaining and they have confirmed Canadian employment or a confirmed employment offer. Some lenders require 10–35% down for non-PR applicants.

Foreign nationals without a Canadian permit face additional restrictions under the Prohibition on the Purchase of Residential Property by Non-Canadians Act. Legal advice is essential before proceeding.

The Newcomer to Canada Guide is inside the free program

The Turning Keys newcomer section covers credit building, foreign income, immigration status, document checklists, and CMHC's New to Canada program in full detail — all in one place, free.

Open the Free Program →

Frequently asked questions

Does my credit history from another country transfer to Canada?
No. Credit histories do not transfer between countries. When you arrive in Canada, Equifax Canada and TransUnion Canada have no record of you — your Canadian credit history starts at zero regardless of how strong your credit was in your home country. Some lenders will consider international credit references as supplementary documentation, but this is at their discretion and not standard practice.
How long does it take to build enough credit to qualify for a mortgage in Canada?
Most standard mortgage products require a minimum of two years of Canadian credit history, with at least two active credit accounts. With a deliberate approach — opening a secured credit card immediately upon arrival, using it regularly, and paying it off monthly — you can establish a meaningful credit file within 6–12 months. However, the two-year threshold for standard mortgage qualification means most newcomers should plan a 2-3 year runway before applying.
What is CMHC's New to Canada mortgage program?
CMHC's New to Canada program allows newcomers with less than 24 months of Canadian credit history to qualify for an insured mortgage with as little as 5% down, using alternative documentation. Eligible applicants include Canadian citizens, permanent residents, and non-permanent residents (work or study permit holders with at least 12 months remaining). Alternative documentation may include international credit references, international bank statements, and employer letters.
What credit score do I need for a mortgage in Canada?
Most lenders require a minimum credit score of 620–650 for mortgage approval, with scores above 700 qualifying for better rates. For CMHC insured mortgages, the minimum is 600. Credit scores in Canada range from 300 to 900, with anything above 700 considered good and above 750 considered excellent. Your score is primarily driven by payment history (paying on time), credit utilisation (keeping balances below 30% of your limit), and account age.
Can I get a mortgage in Canada on a work permit?
Yes, in many cases. Non-permanent residents (work permit holders) can access CMHC insured mortgages with as little as 5% down if their permit has at least 12 months remaining and they have confirmed Canadian employment. Some lenders require larger down payments (10–20%) for non-PR borrowers even when CMHC eligibility exists. Having a work permit that leads to permanent residency strengthens your application significantly.

Related articles

Savings
FHSA: How Canada's first home savings account works
Down Payment
Down payment rules in Canada (December 2024)
Process
How to buy a home in Canada: step by step

Disclaimer: This article is educational content only — not financial, mortgage, legal, or real estate advice. Rules and figures are current as of 2024–25 and may change. Always consult a licensed professional for advice specific to your situation. Turning Keys is operated by Wise Victoria Mortgages (BCFSA Lic. #MB600614) and Nick Wise Personal Real Estate Corporation.