New To Canada?
Wednesday Sep 21st, 2022
Canada has seen a surge in international migration over the last few years. With all these new faces in town wanting to plant roots in this great country, it’s a good time to review some of the details surrounding mortgages and how individuals new to Canada can qualify to be homeowners.
If you are already a Permanent Resident or have received confirmation of Permanent Resident Status, you are eligible for a typical mortgage with a 5% down payment - assuming you have good credit.
If you have limited credit or have not yet qualified for Permanent Residency, there are still options! In fact, there are several ‘New to Canada’ mortgage programs through CMHC, Sagen™ and Canada Guaranty Mortgage Insurance. Please note, for these programs you will typically require a valid work permit is valid up to 3 months post-purchase date.
To qualify for these New to Canada programs, you must have immigrated or relocated to Canada within the last 60 months and have had three months of minimum full-time employment in Canada.
For 90% credit, a letter of reference from a recognized financial institution OR six (6) months of bank statements from a primary account will be required.
- If you are seeking credit of 90.01% to 95% you need an international credit report (i.e: Equifax) demonstrating a strong credit profile OR two alternative sources of credit (i.e.: hydro/utilities, telephone, cable, cell phone or auto insurance) demonstrating timely payments (no arrears) for the past 12 months
Depending on your residency status and credit history, another option is alternative or private lenders as well who can fund your mortgage.
If you are unsure of your options or want to make sure you get the best mortgage product possible, please don't hesitate to contact your mortgage broker.