Mortgage default insurance is required for loans that have a down payment of less than 20% on homes that cost less than $1 million. So, while you might have enough income to make a down payment on a home in Canada, mortgage insurance restricts what and how much you can buy due to mortgage insurance requirements.   The Canada Mortgage and Housing Corporation (CMHC), a government-owned entity, offers mortgage loan insurance through the CMHC Newcomers program. Here’s what that entails.  Credit history:  Permanent residents need to have a credit score of at least 600. Alternative credit history sources, like rent and utility payments, are considered for permanent residents without Canadian credit history.  Non-permanent residents' (e.g. work permit holders) international credit reports are used by the CMHC. If an international credit report can't be confirmed, a reference letter might be requested by the CMHC.  Down payment:  A minimum of 10% down payment is required from non-permanent residents.  If you have permanent resident status, your minimum down payment can be 5% and you can access all CMHC homeowner mortgage loan insurance products.  Eligible property types:  Non-permanent residents can get mortgage insurance for a rental property; however, it must be a multi-unit property and one of the units must be occupied by the owner. It also must not be subject to the Prohibition on the Purchase of Residential Property by Non-Canadians Act.  Permanent residents can buy a one or two unit home, if they can make a 5% down payment; homes with three or four units require a down payment of 10% or more, and two to four unit rental properties require a minimum down payment of 20%.