What is a New to Canada Mortgage?
Some Canadian banks offer a special mortgage program for people who are new to the country called a “newcomer mortgage.” The purpose of these mortgages is to make it possible for newcomers to purchase a home even if they do not satisfy the standard qualifications. The following are the primary reasons that make it challenging for immigrants to obtain a conventional mortgage:
Lacking a history of employment in Canada
Banks in Canada prefer to see that you’ve had steady employment in Canada for the past two years. Employment history demonstrates that your income is steady.
No Canadian Credit History
A bank will review your credit report to determine how you have handled debt in the past. This contains your balances and credit limits as well as information about your payment history, such as if you’ve ever skipped or paid late. Your established credit history demonstrates your long-term financial responsibility.
You might not have a work history or credit history in Canada if you are a newcomer. Banks are more flexible with their eligibility standards when offering newcomer mortgage programs. To be considered a newcomer to Canada, you must meet specific criteria.
Who is a New to Canada Mortgage for?
This is for borrowers who are considered newcomers. To be eligible, you must:
have immigrated to Canada within the last five years.
You are no longer regarded as a new immigrant if you have been in Canada for more than five years.
be legally allowed to live in Canada.
You must be a permanent resident/landed immigrant or a temporary resident with a work permit.
be working full-time for at least three months in Canada.
A history of full-time employment, at the very least, is required.
How does a New to Canada Mortgage work?
You have to ensure you are eligible for this program
Next, contact us to find out how much house you can afford.
You should have your down payment ready, which can be as low as 5%.
We will build your file and submit it to our lender-partners to find the most advantageous solution for you.
What are the advantages?
- Newcomers with permanent residence status have access to homeownership and can put as little as 5% down on a home.
- Access to CMHC-insured financing is available, and as a result, many Canadian banks provide attractive interest rates.
- Access to the program is possible from anywhere in Canada, and there is no ceiling on the loan amount.
- No Canadian credit history required
- Fast approvals
- Competitive rates
What are the disadvantages?
- Rates may differ depending on a variety of criteria, including whether or not you are a permanent resident, your credit score, and the amount of money you have saved for a down payment. Each case is evaluated separately.
- If you have a loan, mortgage, credit card debt, or any other kind of debt outside of Canada, the amount you owe may need to be disclosed in your application.
- You are only permitted to buy certain kinds of property.
- When an individual’s creditworthiness cannot be established by an overseas credit report, a letter of reference from a financial institution in the individual’s home country may be requested.
What do I need to get started?
You must have documentation showing that you have been employed full-time for at least three months in Canada.
Your 5% down payment must originally come from personal savings. Instead, as part of your relocation agreement, your business might pay a portion of the down payment for you, or your family might offer it to you as a present.
The amount of any debt you have, whether it be a loan, mortgage, credit card balance, or any type of obligation, that you owe outside of Canada must be included in your application.
You’ll need a letter of employment from your employer that includes information about your pay and work status as proof of your employment.
You must provide a bank statement or other document demonstrating that you have at least 5% of the purchase amount in savings.
Is this program for you?
