# What is the difference in mortgage eligibility between a Permanent Resident and a work permit holder?

> Both Permanent Residents and work permit holders can qualify for insured mortgages in Canada, but work permit holders face additional documentation requirements and lenders may apply stricter income stability checks.

Category: Newcomers
Last verified: 2026-04-19
Source: https://ratellow.com/faqs/newcomers/pr-vs-work-permit-mortgage-eligibility-canada

## Answer
**Both Permanent Residents (PRs) and valid work permit holders can access insured CMHC/Sagen/Canada Guaranty mortgages in Canada**, but eligibility conditions differ meaningfully.

## Permanent Residents

- **Full access**: PRs are treated nearly identically to Canadian citizens for mortgage purposes.
- **Down payment**: Standard rules apply — 5% minimum on purchases up to $1.5M.
- **No time-in-Canada minimum**: You can apply immediately after landing.
- **Credit**: International credit report accepted; 2+ tradelines preferred.

## Work Permit Holders

- **Eligible for insured mortgages**: CMHC, Sagen, and Canada Guaranty all cover work permit holders, subject to:
  - Valid work permit with at least 12 months remaining
  - Full-time, non-probationary employment in Canada
  - Minimum 2-year employment history (Canadian and/or foreign)
- **Higher down payment possible**: Some lenders require 10% down for work permit holders vs 5% for PRs, even on properties under $500K.
- **Employment letter**: Must show position, start date, annual salary, and confirmation of non-probationary status.
- **Temporary foreign workers**: Open work permits (PGWP, LMIA) generally qualify; employer-specific permits face more scrutiny.

## Temporary Residents / Refugee Claimants

- Eligible via CMHC Newcomer program under specific conditions — contact a lender directly for status-specific guidance.

### Your Next Steps
1. **Confirm your permit status** and check expiry date relative to mortgage term
2. **Gather employment documentation**: letter, T4s, NOAs if available
3. **Speak with a mortgage advisor** familiar with newcomer clients

## Related guide
- https://ratellow.com/guides/newcomer-canada-mortgage

## Sources
- CMHC New to Canada Program — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- Canada Guaranty Underwriting Guidelines — https://www.canadaguaranty.ca/lenders/underwriting-guidelines/