What newcomers need for a down payment and paperwork
How much you put down depends on the price and your status, and the paperwork comes down to one thing: showing where every dollar came from. Canada sets minimum down payments on owner-occupied homes in tiers, with the lowest percentage on the first slice of the price, higher percentages above that, and twenty percent with no mortgage insurance past a certain price. A lot of Vancouver housing sits in that upper tier. The tiers change, so confirm the rules in force when you apply.
Last updated 2026-08-12
How much down payment does a newcomer need?
A permanent resident with an insured mortgage faces the same minimum as a local buyer. A work permit holder generally needs more, and a non-resident buyer more again.
What sets the percentage is the price tier and your status, not how long you have been in the country. At Vancouver prices, twenty percent is often where it lands. At that level there is no mortgage insurance, but the qualifying rules are a different set.
If you are not a permanent resident, check first whether the federal restriction on residential purchases by non-Canadians applies to you, and whether the additional tax on foreign buyers in Metro Vancouver does. Those rules have changed more than once and carry exemptions.
What does a lender need to see about the money?
Ninety days of account history, and an explanation for every large deposit in it.
Most lenders want three full months of statements. Screenshots do not pass, and neither does the balance page on its own.
So during those three months, avoid unexplained cash deposits, avoid moving money through a friend, and avoid shuffling funds between accounts. The cleaner the trail, the faster the file moves.
How should you handle money coming from overseas?
Send it early, split it across people and transfers, and keep the receipt for every step.
Annual limits on how much currency one person can convert mean a large down payment usually arrives through several family members. Most lenders accept that, provided each sender can be identified, their relationship to you documented, and the source of their money explained.
Keep the foreign bank statements, the conversion and transfer receipts, and proof of where the money came from: salary, a property sale contract, dividends, a gift. Informal transfer services generally are not accepted by lenders, and they usually do not clear the lawyer either.
Does money from your parents count?
Yes. A gift from an immediate family member is an accepted source of down payment.
You need a gift letter stating the amount, the relationship, and that the money does not have to be repaid. The funds have to land in an account in your name, with the transfer out of the giver account visible.
If it is really a loan, it has to count as debt against what you can carry. Calling it a gift while agreeing privately to repay it is a documentation problem. Do not do it.
What do you need beyond the down payment?
Closing costs and a cushion on top of them.
The usual list: legal fees, title insurance, home inspection, appraisal, property tax and strata adjustments, moving and home insurance. Property transfer tax in BC is the one people underestimate most; first-time buyer and some new-build exemptions exist, but the conditions get adjusted, so check them against the current rules. New construction can also carry GST.
Most lenders also want to see something left in your account after closing rather than a balance at zero.
What is on the document list?
Four categories: status, income, credit and funds.
Status: passport, PR card or work permit, landing paper, SIN. Income: an employer letter and recent pay stubs, or for self-employed, two years of returns, Notices of Assessment and business documents.
Credit: your Canadian credit history, or an international credit report and a letter from your bank abroad if you have none yet. Funds: 90 days of statements, transfer receipts, source of funds documents, and any gift letter.
Common questions
Can a down payment be borrowed, or come off a credit card?
No. Most lenders require your own funds or a gift from an immediate relative. Borrowed money counts as debt and is often not accepted at all.
Is the deposit the same as the down payment?
No. The deposit goes to the brokerage within days of your offer being accepted. It counts toward the down payment, but you need it much sooner.
How late can overseas money arrive?
Generally you need to prove the funds are in place before subject removal, and no later than the date your lawyer sets. Cross-border transfers take longer than most people expect.
What if a new local account has no 90-day history?
Fill the gap with foreign bank statements and transfer receipts. What most lenders want is a complete explanation, not necessarily 90 days in a Canadian account.
How does this land on your file?
The above is general. How it works out for you takes about ten minutes on the phone.
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