Case Study · Residential / Prime

Eight Months in Canada: An Insured New-to-Canada Mortgage Bought a Family Home in Saskatoon With About 5.6% Down

A married couple with two young children arrived from abroad in August 2021, each with a master's degree and more than ten years of work experience. Both had permanent full-time work within two months, and by spring 2022 they wanted to stop renting and buy a three-bedroom house in Saskatoon priced at about $570,000.

Closed in 2022 · Published October 17, 2026

Residential
Prime lender
Insured
Purchase
New to Canada
Newcomer

Purchase price: about $570,000
Down payment: about $32,000
Insured mortgage: about $557,000
Time in Canada: Eight months
Rate in 2022: Prime minus 1.05%

The Situation

The Challenge

Eight months of Canadian credit and income is usually too little for a standard mortgage, and their savings covered a down payment of only about $32,000.

The Solution

In 2022 we placed the purchase under an insured new-to-Canada program: about $557,000 including the default insurance premium, about 94% of the price, on a five-year variable rate at prime minus 1.05% at the time. Credit scores already above 700, permanent job letters and pay stubs, and their professional histories abroad carried the file at debt-service ratios of about 37% and 42%.

The Outcome

The family owned their first home in Canada less than a year after arriving, at a prime rate, without waiting years to build a credit file.

Run the numbers

Mortgage Insurance Calculator

This purchase was insured with about 5.6% down. See the default-insurance premium on your own price and down payment.

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Step 1 · Your purchase

Insurance program

Borrowed down payment (Flex 95) — borrowing your 5% down payment from a line of credit or loan is allowed with strong credit. It raises the 5%-down premium from 4.00% to 4.50% (the loan payment counts in your debt ratios). Only affects purchases with less than 10% down.

Purchase price

Buying new construction? Enter the price including the 5% GST — insurers calculate the premium on the GST-inclusive price. Insured mortgages cap at $1,499,999 (20% down required at $1.5M+).

Down payment

10% = $90,000

Amortization

Province

PST on the insurance premium is paid at closing in ON (8%), QC (9%) and SK (6%). Other provinces: none.

Insurance premium

$25,110

3.10% of $810,000 loan @ 90.0% LTV

Breakdown

Purchase price$900,000

Down payment$90,000 · 10.0%

Loan before insurance$810,000

Insurance premium (3.10%)$25,110

Total insured mortgage$835,110

Premium can be added to (financed in) the mortgage. PST on the premium, where applicable, is paid in cash at closing.

Premium curve · 8% → 25% down

Watch how the insurance premium drops as you raise your down payment — it hits $0 once you reach 20% (no insurance needed). The curve starts at this home's federal minimum down payment. The marker shows where you are right now.

What this calculator does that most don't

Charges the provincial sales tax on the premium where it applies (ON 8%, QC 9%, SK 6% — Manitoba removed its in 2020) — due in cash at closing, which most calculators quietly omit
Standard insured AND Sagen Insured Stated Income (self-employed) in one tool — switch the program to see the higher stated-income premium
Knows the December 2024 rules: max insured price $1,499,999 (high-ratio, under 20% down — not to be confused with the $999,999 insurable cap) and the first-time-buyer OR new-build gate on 30-year insured amortization, with the 0.20% surcharge applied

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Questions and answers

Questions about this file

Can newcomers buy a home after eight months in Canada?+

This family did, in 2022, under an insured new-to-Canada program: about $557,000 including the default insurance premium, on a three-bedroom Saskatoon house priced at about $570,000.

How much down payment did they need?+

About $32,000 of their own savings, about 5.6% of the price. With the insurance premium added, the mortgage came to about 94% of the price.

How was eight months of Canadian credit enough?+

Credit scores already above 700, permanent full-time job letters and pay stubs, and more than ten years of professional work abroad each carried the file at debt-service ratios of about 37% and 42%.

What rate did they get?+

A five-year variable rate at prime minus 1.05% in 2022: a prime rate, without waiting years to build a credit file.

When did they arrive?+

In August 2021. Both had permanent full-time work within two months, and they owned their first home in Canada less than a year after arriving.

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