The process of getting a mortgage may seem complicated if you’re a newcomer to Canada and hoping to purchase a property. Fortunately, there are resources available for immigrants to Canada, including programs and experts that can help you through the process. What you need to know is as follows:
The New to Canada Program
The New to Canada Program is a mortgage program designed for individuals who have immigrated to Canada within the last five years. It provides the ability to purchase a home with as little as 5% down payment and without a Canadian credit history. To be eligible, you’ll need to have a work visa, be a permanent resident or have received confirmation of permanent residence, or be a Canadian citizen with no credit history.
Building a Canadian Credit History
If you don’t have a Canadian credit history, it’s important to start building credit in Canada. This can be done by opening a Canadian bank account, getting a Canadian credit card, and paying bills on time. You may also be able to use your credit history from your home country to help establish your credit worthiness in Canada.
Employment and Income Requirements
When applying for a mortgage in Canada, you’ll need to provide proof of income and employment history. You’ll need to have a stable source of income that is expected to continue in the future. Lenders will typically look for a two-year employment history in Canada.
Before starting your home search, it’s important to get pre-approved for a mortgage. This will give you a better understanding of how much you can afford and will put you in a better position to make a strong offer on a home. Getting pre-approved for a mortgage will typically involve providing documentation such as proof of income, proof of savings history, employment history, and credit history.
Working with a Mortgage Broker
When applying for a mortgage as a newcomer to Canada, it’s important to work with a mortgage broker who has experience working with individuals in similar situations. A mortgage broker can help you navigate the mortgage process, find the best mortgage solution for your unique situation, and answer any questions you may have along the way.
It can be an exciting and rewarding experience to purchase a home as a newcomer to Canada, but it’s crucial to comprehend the special criteria and possibilities accessible to you. I specialize in assisting foreign nationals in Canada in locating the best mortgage options. To find out more about the New to Canada Program and how I may assist you in achieving your dream of owning a home, get in touch with me right now. See my contact info below.