Mortgages for Newcomers to Canada
Canada offers many housing opportunities for newcomers. If you are new to Canada or are looking to immigrate here in the near future, there are mortgage options available to you.
The following is a list of requirements needed:
- Landed Immigrant Status
- Full time emplyment for 3 months minimum
- OR Transferred through Canada through a relocation program
- Recent Pay Stubs
- Letter of employment
- 12 month bank statements from known institution from country of origin
- 12 Months of verifiable payments (optional
Besides the stated documentation, you will need to have good credit to apply for a mortgage in Canada. Unfortunately, if you are new to the country you may not be able to prove that just yet. An optimal way to boost your credit score is to apply for a Canadian credit card. When you receive the card, make all your payments on time to show you are responsible and can handle debt.
If you have a credit report from a commonwealth country such as Australia, the United Kingdom and the United States, you may use that instead. Though, it is always best to establish credit in the country you live in just in case you need to take out loans or lines of credit.
Mortgages require down payments. You will need to produce at least 10% of your future home’s purchase price for the down payment.
What if you don’t Qualify?
The CMHC (Canadian Mortgage and Housing Corporation), Genworth Financial and Canada Guaranty provide mortgages for newcomers who don’t qualify for traditional mortgages.
What if you’re in the process of Immigration?
Make contact with one of HVR’s mortgage Agent he /she can answer all your questions and help guide those of you who are new to Canada in getting funding for your new home. It is often advisable to start establishing credit once you arrive in Canada by applying for credit cards getting a job, opening a bank account all count to towards establishing your creditability. Just because your new doesn’t mean that you can’t own your own home.