Question from caller: “I am new to Canada, is there a way I can get a mortgage?”
Fortunately for many people who are in this situation, there is a “new to Canada” program that is designed to help with their purchase. There requirements are different from other mortgage programs offered, and these requirements are mainly determined by the default insurers.
The main requirements are as follows:
- Applicants must have immigrated to Canada within the last 5 years
- Applicants must have at least 5% down payment from their own resources.
- Down payment cannot be “borrowed”, no exceptions! (Call us for a list of acceptable types of down payment)
- Applicants must have a permanent resident status, landed immigrant or valid work permit in order to qualify under this program
- The applicant(s) must have a minimum of 3 months full-time employment in Canada (permanent, no contract)
- With respect to credit, the banks will use alternative means to assess these criteria. This may include the following:
- 6 months banking history (Canadian)
- 12 months rental history (Canadian) confirmed by a letter from the landlord, plus bank corresponding bank statements to confirm payments
- 12 months utility payments history from service provider or bank statements
- International credit bureau
The main advantage of this program is to give alternative consideration to the credit-worthiness of the borrower, who have not yet established sufficient credit history in Canada. It also allows for leniency on a minimum employment tenure as long as the employment is permanent full-time (non- contractual). You’ll notice that the down payment requirements are similar to all other mortgage programs but with a slightly greater emphasis on ‘non-borrowed funds.’
If you are interested in finding out more about this program or would like to discuss your personal circumstances under the new-to-Canada program, please don’t hesitate to give us a call today! – (905) 455-5005.