Imagine this: You’re in Canada for your studies. Life is new, exciting, and full of promise. Amid the lectures and late-night assignments, a thought crosses your mind — Can I buy a home here? Can I actually get a mortgage as an international or domestic student in Canada?
It’s a good question — and the answer isn’t as far-fetched as it may seem. With rising rents, student housing shortages, and long-term investment potential, many students (and their families) are now considering buying property instead of renting. But does the Canadian mortgage system allow this?
In this guide, we’ll walk you through everything you need to know — including eligibility, requirements, challenges, and smart tips — to help you understand whether buying a home as a student in Canada is possible for you.
The Student Dream: Why Buy Instead of Rent?
Let’s start by addressing the “why.”
1. High Rent, Low Supply
Rental prices in cities like Toronto, Vancouver, and Mississauga have soared. In many student-heavy areas, even a basic basement unit can cost upwards of $1500 per month. If you’re staying in Canada for multiple years, that’s a significant sum going into someone else’s pocket.
2. Long-Term Investment
For many students, especially international ones, buying a home is more than just shelter — it’s a long-term investment. Property values in Canadian cities tend to appreciate, offering potential resale or rental income opportunities post-graduation.
3. Family Support
Some students come from families who are financially stable and want to help them avoid housing uncertainty. Purchasing a condo or small home in the student’s name or jointly can be a way to provide both stability and security.
So, Can Students Get a Mortgage in Canada?
Yes, but it depends. While there are no explicit laws that ban students from getting a mortgage, lenders will take a close look at your financial stability, income, residency status, and credit history.
Let’s break it down further.
Domestic vs. International Students: What’s the Difference?
The answer to “Can I get a mortgage as a student in Canada?” changes based on your status:
1. Domestic Students (Canadian Citizens or PR)
You are treated like any other borrower.
If you have income, credit history, and meet standard requirements, you may qualify.
Co-signers or guarantors (like parents) often strengthen the application.
2. International Students
You face more scrutiny.
You may still qualify under New to Canada or Non-Resident mortgage programs.
Lenders typically ask for a larger down payment, proof of funds, and financial documents from your home country.
What Are the Basic Requirements?
Whether you’re a domestic or international student, these are the common factors lenders look for:
1. Proof of Income
Full-time students usually don’t have high earnings.
A steady part-time job, research assistantship, or internship income may count.
Co-applicants (like parents) with strong income can help.
2. Credit History
If you’ve been in Canada for a while and have a credit card or loan, your credit score becomes crucial.
No history? Lenders might require alternative proof or a higher down payment.
3. Down Payment
Domestic students: Minimum 5% down payment for properties under $500,000.
International students: Typically need 35% or more as down payment if no established Canadian credit.
4. Canadian Bank Account & Legal Status
You must have a valid study permit and a Canadian bank account.
Non-residents may be subject to additional rules under the Prohibition on the Purchase of Residential Property by Non-Canadians Act (2023) — more on this below.
Understanding the Non-Resident Home Buying Ban
In January 2023, the Canadian government introduced a 2-year ban on non-residents buying residential property to cool the housing market.
Key Exceptions Include:
International students who have been in Canada for at least 244 days per year for 5 years, and
Have filed income tax returns in 4 of the 5 years.
If you’re a new student, this might restrict your ability to buy on your own — but there are workarounds, such as buying through a co-signer who is a Canadian citizen or permanent resident.
Challenges Students Face When Applying for a Mortgage
Even though it’s possible, here are some common obstacles:
1. Lack of Credit History
Most students don’t have a credit score — or it’s too low for lenders to feel confident.
2. Insufficient Income
Part-time jobs or side gigs may not meet the bank’s debt-to-income requirements.
3. Immigration Uncertainty
For international students, lenders worry about long-term plans. Will you stay or leave after your studies?
4. Cash Flow Issues
Tuition, books, transportation, and everyday costs can make it harder to save for a down payment or handle monthly mortgage payments.
How Can Students Improve Their Chances?
If you’re serious about buying, here’s what you can do:
1. Start Building Credit Early
Open a secured credit card, pay bills on time, and build a healthy score.
2. Use a Co-Signer
Having a parent or trusted adult with solid income and credit co-sign your mortgage dramatically boosts your chances.
3. Get Pre-Approved
Before you start hunting for homes, talk to a mortgage broker to see what you can afford and what terms you qualify for.
4. Work with a Specialist
Not all banks understand student mortgages, but specialist mortgage brokers do. They can guide you to lenders open to unique profiles like yours.
A Real-World Example: Aarav’s Story from India
Aarav came to Mississauga for a 4-year engineering degree. By year two, he noticed rental prices were eating into his family’s savings. His parents offered to help buy a condo — but they hit a wall with local banks.
Then they approached a mortgage broker who helped them:
Structure a joint mortgage with his father as co-signer
Use funds from India with proper documentation
Get pre-approval through a lender offering international student mortgage programs
Within 3 months, Aarav was living in a cozy 1-bedroom unit — which, by the end of his degree, had appreciated by nearly 18%.
Why Mortgage Brokers Matter
Navigating this space isn’t easy — especially with all the paperwork, policies, and restrictions.
That’s where a mortgage broker becomes invaluable.
Unlike traditional banks, mortgage brokers:
Compare rates from multiple lenders
Know the programs suitable for students and newcomers
Help you build a plan — even if you’re not ready to buy today
If you’re in Ontario, working with the Best Mortgage Broker in Ontario ensures that you have someone on your side who understands student and newcomer mortgage needs.
And if you’re studying in the Peel region or nearby, you can connect with the Best Mortgage Broker in Mississauga for local insights, tailored options, and expert support through the entire process.
Alternative Options if Mortgage Isn’t Available
Still hitting walls? Here are other ways to stay stable:
1. Parental Purchase
Your parents can buy the property in their name and let you live in it. Later, you can take over the mortgage once eligible.
2. Rent-to-Own Programs
Some developers offer rent-to-own options where part of your rent contributes toward future purchase.
3. Private Lenders
If banks say no, some private lenders are open to working with students — especially if you have a large down payment.
4. Joint Ventures
Teaming up with a friend or relative to purchase together can lower the financial burden.
What Types of Properties Are Ideal?
If you’re a student eyeing homeownership, these property types are most common:
Condos: Low maintenance, often near transit and universities.
Townhouses: Slightly larger, good for families or shared student living.
Detached Homes: Less common unless your family is investing alongside you.
Key Takeaways: Can I Get Mortgage for Home as a Student in Canada?
Yes, it’s possible — especially if you plan smartly, build credit, and use the right support.
No, it’s not easy — without income, credit, or a strong co-signer, traditional banks may reject your application.
What you need:
Valid study permit and status
Income or co-signer
Credit history or alternative documentation
Minimum 5% (domestic) or 35% (international) down payment
Pro Tip: Start early, even if you’re not buying for a year or two. Talk to a broker, build your profile, and prepare for future success.
Final Thoughts: Make Your Time in Canada Count
Being a student is already a huge journey. Throwing homeownership into the mix might seem wild — but in Canada’s dynamic real estate market, it could be a wise and rewarding step.
So if you’ve been asking yourself, Can I get a mortgage for home as a student in Canada? — the answer is yes, but only with preparation, support, and smart financial planning.
When in doubt, speak to a mortgage expert who understands the student journey. They’re not just selling you a mortgage — they’re helping you plant your roots.
