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Newcomer family in front of their Ontario home

New to Canada

Private Mortgages for Newcomers to Canada in Ontario

You arrived with savings, a career, and a clean record somewhere else. The bank only reads the Canadian part, and that file is a few months old. If there's equity in the property, the Canadian history can catch up later.

Stonefield Capital provides private first and second mortgages in Ontario to newcomers to Canada whose Canadian credit and income history is too short for a bank. Approval is based on the equity in the property and a clear exit strategy rather than Canadian credit score or filed tax returns. Where a Canadian Notice of Assessment exists it is always requested to confirm no CRA arrears; foreign income records may be requested for context, and gaps do not decline a file. Terms run 1 to 12 months, interest-only, as a bridge until the borrower can qualify with a bank. Borrowers are matched with a Stonefield-approved mortgage broker.

Why a Bank Declines a Newcomer Who Is Clearly Good for It

A Canadian bank qualifies a mortgage on three things it can pull automatically: a bureau score built from Canadian credit accounts, a Canadian employment history, and Notices of Assessment filed with the CRA. Someone who landed eighteen months ago may have none of the three at full strength, whatever they earned or owned before. The automated decision usually happens before an underwriter looks at the property or the savings, and "newcomer programs" at the big banks tend to cap the loan size and still want the paperwork.

A private mortgage starts from the other end. Stonefield looks at the equity in the Ontario property, whether it would sell in its local market, and the exit — usually a refinance to a bank once there is a year or two of Canadian credit and a filed return, sometimes a sale. Where a Canadian Notice of Assessment exists it is always requested, to confirm there are no CRA arrears that would rank ahead of the mortgage; if none has been filed yet because you are new, that alone doesn't decline the file. Foreign tax returns, overseas bank statements or a Canadian employment letter may be asked for to give the file context, and gaps are noted, not fatal. You're then matched with a Stonefield-approved broker who structures the loan and plans the exit.

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The Play: Close Now, Build the Canadian File, Refinance

The bank isn't wrong that it wants Canadian history; it's just early. A private mortgage lets you close the purchase or pull the equity today, then use the 1 to 12 month term to do what the bank needs to see: open and use Canadian credit, file a first return, get a filed Notice of Assessment, and log time with a Canadian employer or business. Renewal is possible where the exit plan warrants it. By the time the private term ends, the newcomer program that declined you is usually a straightforward approval, and you refinance at a bank rate. A Stonefield-approved broker maps that timeline with you before the commitment is issued, not after.

When Newcomers Come to Us

Most are people whose finances are in far better shape than their Canadian paperwork.

Buying a First Ontario Home

You have the down payment, sometimes a large one, but not the Canadian credit file a bank wants before it will lend the rest.

Self-Employed or on Contract

You brought a business or consult on contract, so there is no Canadian T4 and no filed return yet.

Permanent Resident or Work Permit

Your status is fine; your Canadian history is just short. The bank's form can't tell the difference.

Pre-Approval Pulled Before Closing

A lender pre-approved you, then declined when the file went to underwriting, and the closing date didn't move.

Equity to Use, No Canadian Income Yet

You already own in Ontario and need to pull equity for a business, a renovation, or family, before a bank will talk to you.

Family Helping Family

Relatives are contributing a down payment or co-owning, and the structure doesn't fit a bank's newcomer program.

In every case Stonefield looks at the equity in the property and a realistic exit, not at how long you've been in Canada.

What Newcomers Should Know

Equity and Exit, Not a Canadian Score

No minimum beacon and no requirement for Canadian credit history. Approval rests on the equity available and a credible exit within the term, most often a bank refinance once your Canadian file has matured.

What Helps the File

Your most recent Canadian Notice of Assessment if one exists, foreign tax returns or income statements, three to six months of Canadian or international bank statements, a Canadian employment letter if you have one, and proof of the down payment or existing equity.

Matched With a Broker

You're connected with a Stonefield-approved mortgage broker who structures the loan, handles the paperwork, and plans the exit back to conventional lending, usually within one business day.

Frequently Asked Questions

Can I get a private mortgage in Ontario if I just arrived and have no Canadian credit score?
Yes. Stonefield approves private mortgages on the equity in the property and a clear exit strategy, not on a Canadian bureau score. A newcomer with no Canadian credit file can qualify if there is enough equity and a realistic refinance or sale exit within the 1 to 12 month term. You're matched with a Stonefield-approved broker who structures the file.
Do I need a Canadian Notice of Assessment?
If one exists, it is always requested, mainly to confirm there are no CRA arrears that would rank ahead of the mortgage. If you haven't filed a Canadian return yet because you are new, that alone doesn't decline the file. The request is about tax liens, not about proving income.
Does my income from before I moved count?
Foreign tax returns, overseas bank statements or an employment letter from a Canadian employer may be requested to give the file context. Gaps or a short Canadian employment history don't decline the file; the underwriting weight stays on equity and exit.
Does this work for a purchase, or only if I already own?
Both. A newcomer buying a first Ontario home with a down payment but no Canadian credit file can close the purchase with a private first mortgage. A newcomer who already owns can pull equity with a private refinance or second mortgage. The decision is the same either way: equity and exit.
How much can I borrow, and what does it cost?
Borrowing depends on the equity available and the lien position. Pricing moves with loan-to-value and position, so current rate ranges are published on the Stonefield rate page rather than quoted here. Payments are interest-only during the term, which keeps the carrying cost down while you build Canadian history.
How fast can it close, and how do I start?
A commitment the same day in most cases once the submission is complete, and funding in as little as 48 hours when legal counsel is ready. Tell us about your situation through the connect form and you'll be matched with a Stonefield-approved mortgage broker, usually within one business day. No cost, no obligation.

Common Questions

A deeper answer to the question newcomers ask most.

Can I Get a Private Mortgage in Ontario as a New Immigrant to Canada?

New to Canada, Ready to Buy or Borrow?

Get matched with a Stonefield-approved broker who lends on the equity in the property, not on how long your Canadian file is. Free, no obligation, most borrowers hear back within one business day.