New To Canada

Mortgages for Newcomers

Canada is a welcoming country where newcomers play an important part in the nation’s future and housing market. For those who are new to the country, there are some mortgage products specifically designed to help you buy a home. The Canadian Mortgage and Housing Corporation (CMHC) and Genworth insured financing offers loans to those with permanent residence and non-permanent residence status.

Non-residence borrowing

For Canadians living overseas or non-residents, they can take advantage of a non-residence lending program if they are looking at purchasing a home in Canada. However, there are some restrictions on the lending that various financial institutions will impose. Not every lender has a non-residence lending program so you may need to do some research and shop around.

Benefits

With these mortgage options, newcomers to Canada can achieve their dream of owning a home. Those who have permanent residency status can buy a property with just a 5% down payment. In addition, these mortgage products offer competitive interest rates from many banks in Canada. Mortgages for newcomers are available across the country and there are no maximum loan restrictions.

Program details

Individuals with permanent resident status are able to select from all of CMHC and Genworth mortgage products, based on their eligibility. This helps those new to Canada who do not have a credit history in the country. CMHC and Genworth offer alternative sources of payment history documentation for Loan-to-Value ratios up to 95%.

Individuals with non-permanent resident status are able to access loans from CMHC and Genworth with Loan-to-Value ratios up to 90%. However, the home must be a one-unit, owner-occupied residential property.

One of the benefits of these mortgage options is that newcomers do not need to face additional fees or premiums because of their residency status. There is no minimum period of residency on applications.

Requirements

When it comes to making an application for a newcomer’s mortgage, there will be some paperwork and information you will need to provide. This includes:

Down payment – You will need to provide a 35% down payment towards the purchase of the home. This money needs to be in a Canadian bank account 90 days before the mortgage will be approved. Unfortunately, you are not able to use gifted money for the down payment.

Proof of income – Similar to other mortgage applicants, newcomers will need to have a letter from their employer with salary details, how long you have been with the company and any bonuses you receive. You will also be expected to provide a paystub as proof of income.

Credit verification – Even if you do not have a sufficient credit history in Canada yet, you can provide a letter of reference from your bank or an international credit bureau. However, some lenders may require that your bank account has enough money to cover rent payments for a year prior to granting you approval.

If you want to know more about newcomer mortgage options, contact us today.