Landing in a new country, buying your first house & applying for a mortgage can be challenging and stressful for anyone.
Our “New to Canada” program – makes it easier for the newcomers to get approved for mortgage and buy their dream.
Requirement
· Must have immigrated or relocated to Canada within the last 60 months.
· Must have a valid work permit or obtained permanent residency.
· Guarantors are not permitted.
Supporting Documents required
A lender would like to know about employment and your ability to pay the monthly mortgage payment so you will need to provide: employment letter, bank statement for salary deposit, immigration / visa documents
The required set of documents would be lender specific & can vary depending upon ones situation but general requirement would be:
· Rental history and a letter from the landlord
· Bank statement for last 12 months
· Payment history for utilities bill payments
· Reference letter from your bank from home country
· Credit report (if available)
Credit History
As a new immigrant, there are so many things to be done to establish yourself but the first thing you should do is start building credit as early as possible
Lenders in Canada generally ask for a two year credit history for a mortgage. There are 2 credit bureaus in Canada – Equifax & Transunion.
If you have any of these credit bureaus in your home country – you can simply ask for the latest credit report.
If in case, you don’t have any of these credit bureaus in your home country-
- Check for international credit report (if available)
- Get a reference letter from your bank with last 12 months statement of account
There are so many different things that you can do to start building your credit in Canada but the most effective would be to apply and start using a credit card or:
- Build your rental history – pay your rent by check and have record
- Pay your utilities on time
- Apply for a secured credit card (if not approved for unsecured card)
- Get a post-paid mobile connection
- Open a bank account and start regular monthly savings
Down Payment
Normally, Canadian lenders need at least 20% down payment but Qualified home buyers under new to Canada mortgage can buy a property up to $5,00,000 with as low as 5% down payment with mortgage default insurance. The premium for that insurance can get added to the mortgage principal amount.
A down payment grant provided under a Genworth Canada approved Affordable Housing Program may be used as down payment at 95% LTV (the borrower is not required to have 5% down payment from own resources).
If you can put 20% above down payment, you will not need to purchase mortgage insurance.
Eligible Properties
· Maximum 2 units, where 1 unit must be owner occupied
· New construction covered by a Lender approved New Home Warranty Program
· Existing resale properties
Note: The Property value must be less than $1,000,000 and should be owner occupied as primary residence
Mortgage
You can talk to your bank or go through the Canadian mortgage broker channel. An Independent & Licensed Mortgage Specialist provides independent advice on different mortgage products and loan options available for you and helps you choose the Right mortgage product as per your needs. The mortgage product / options permitted:
· Fixed, Variable and adjustable rate mortgages are permitted
· Maximum interest rate term & amortization is 25 years
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