Immigration Loans Canada: Q&A

In this video, we answer some of the most common questions about immigration loans in Canada — what they are, who qualifies, and how newcomers can use them to build a new life in Canada.

What Are Immigration Loans?

Immigration loans are financial programs designed to help newcomers to Canada cover essential settlement costs. These loans are typically provided through government-backed programs such as IRCC’s Immigration Loans Program, or through private lenders and community organizations that specialize in helping immigrants establish themselves financially.

The funds can be used for a variety of purposes, including:

• Travel costs to come to Canada

• Medical exams and documentation required for immigration

• Housing deposits and basic living expenses upon arrival

• Training, licensing, or credential recognition to help newcomers join the workforce

Unlike grants, these loans must be repaid, but they often come with low or zero interest, flexible repayment schedules, and a strong emphasis on helping borrowers succeed.

Who Qualifies for Immigration Loans in Canada?

Eligibility depends on the type of loan and the organization providing it. In most cases, you must:

• Be a refugee, permanent resident, or newcomer approved to immigrate to Canada

• Demonstrate a need for financial support to settle successfully

• Show that you can repay the loan over time once established in Canada

Government immigration loans are generally assessed by Immigration, Refugees and Citizenship Canada (IRCC) officers, while private lenders may review your employment history or sponsor information.

How Are These Loans Repaid?

Repayment terms typically begin 12 to 24 months after arrival in Canada, depending on your financial situation. Payments are made in small, manageable installments. Some private lenders also allow early repayment with no penalties.

For many newcomers, these loans are a stepping stone to building credit in Canada — which later helps when applying for other financial products like credit cards, car loans, or mortgages.

Alternatives and Private Options

In addition to government programs, some Canadian fintech lenders, banks, and settlement agencies now offer private immigration loans or newcomer support loans. These are designed for individuals who may not qualify for IRCC funding but still need help covering initial expenses or starting a small business after arriving in Canada.

You can compare and explore these options through Smarter Loans’ network of trusted lenders to find one that fits your needs and circumstances.

Our Take

Immigration loans play a vital role in helping newcomers start strong in Canada — providing access to funds at a critical time while helping build long-term financial stability.

Watch the full Q&A video above to learn more about how immigration loans work and how to apply.
Explore immigration and newcomer loan options on Smarter Loans to find verified Canadian lenders.