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Mortgages For Newcomers

Mortgages For Newcomers

People often speak of attaining the American Dream, but what about the Canadian Dream? Like our neighbours to the south, our country 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.

Review the following list and see if you have any of the milestones needed to secure a mortgage in Canada:

  • You must have landed immigrant status in Canada
  • You must secure full-time employment for a minimum of three months or have been transferred to Canada through a corporate relocation program

You will also need certain documents to help you get a mortgage in Canada:

  • A recent pay stub
  • A letter from your employer confirming your employment
  • 12 months of demonstrable bank statements from a recognized financial institution within your country of origin
  • 12 months of verifiable monthly payments that show you can pay your bills in full and on time (these can be phone or utility bills) – this is not always mandatory but it’s best to be prepared

How’s Your Credit?

Besides the aforementioned 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.

Do You Have a Down Payment?

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 For A Traditional Mortgage?

The CMHC (Canadian Mortgage and Housing Corporation), Genworth Financial and Canada Guaranty provide mortgages for newcomers who don’t qualify for traditional mortgages.

Have You Met With A Broker?

A mortgage broker can answer all your questions and help those who are new to Canada in acquiring funding for their new homes. Meet with a mortgage broker and they will ensure you get the best rate and package for your situation. Just because you are new to Canada, doesn’t mean you shouldn’t be able to own your own home.

Are You In The Process of Immigration?

For those who are in the process of immigrating to Canada, you will not be able to get a mortgage quite yet. However, it is best to get the ball rolling as soon as you set up your new life here. Apply for Canadian credit cards, find full-time employment, and talk to a mortgage broker so that in the foreseeable future, the Canadian dream can be yours too.

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Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).

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