Getting a mortgage when you're New to Canada

Welcome and congratulations on your move to Canada! You took, what was without a doubt, a courageous and life changing step in search of a better life for you and your family. Another step to planting strong roots in Canada is to buy a home. You'll probably find buying a home in Canada will be easier compared to the immigration and moving process you went through. This is because Canada has made buying a home for newcomers to Canada as easy as ever through its New to Canada mortgage program.

Eligibility for the New to Canada program is straight forward – you must have either immigrated or relocated to Canada within the past 60 months and have at least 3 months of Canadian full-time employment. That’s all there is to eligibility!

Keep in mind, however, these programs are generally designed for those who have achieved Permanent Residency Status or those who have received confirmation of Permanent Residency Status. For those waiting to achieve Permanent Residency Status, the good news is there are still New to Canada program options available to you.

Depending on the country you immigrated from, you may be ‘culture shocked’ by the prevalence and reliance of credit among Canadians. Having a strong credit history will be vital to growing and achieving success in Canada. This is no truer than when getting a mortgage. Most newcomers to Canada lack a credit history and it’s for this one factor that New to Canada programs are designed to overcome.

Very simply, your credit history (or lack thereof) will determine your minimum down payment requirement - either 5% or 10%. To be eligible for a mortgage with a 5% down payment, you will need to provide an international credit report (from Equifax or TransUnion) that demonstrates a strong credit profile. If you are unable to provide a credit report, you can provide two sources of recurring payments that show timely payments for the past 12 months. One of the these sources must be a history of timely rental payments for 12 months and the second source must be a history of 12 months of bill payments for either hydro/utilities, cell phone, cable/internet, or auto/tenant insurance payments.

If you are unable to meet the above requirement, you will need to meet the requirement for a minimum of 10% down payment. This requires providing a reference letter from a recognized international financial institution and/or six months of bank statements from your everyday banking account in Canada.

If you don’t meet either of the first two options above, a third option available is to get your mortgage from an alternative lender. Alternative lenders enable newcomers to Canada to purchase a home with relaxed requirements in exchange for a slightly higher mortgage rate. With mortgage rates at historic lows, we are seeing alt-lending rates today that are equivalent to prime rates at the big banks just 2 years ago!

Buying a home is an exciting time for everyone, but especially for those new to Canada. Many newcomers to Canada have unnecessarily delayed their home purchase because they did not have the correct knowledge or preparation. If you are new to Canada and looking to buy a home, get in touch with a Sleep Easy Financial licensed mortgage professional, eh?!

Sleep Easy Financial has access to 90+ mortgage lenders including the big banks. We beat the banks’ mortgages and our services are at no cost to you as we get paid by the lenders. Whether it’s for your next home purchase, mortgage renewal or refinance, our licensed mortgage professionals are committed to getting you your lowest rate so you save as much money as possible. We help you at every stage of the journey and are with you for the life of your mortgage. Be mortgage savvy and let us shop your next mortgage for you. Contact us or schedule your complimentary consultation today.

Sleep Easy Financial mortgage and home financing services are available across Mississauga, Brampton, Cooksville, Malton, Etobicoke, Scarborough, East York, North York, Toronto, Hamilton, Milton, Markham, Woodbridge, Vaughan, Ajax, Pickering, Kitchener, Richmond Hill, Whitby, Oshawa, Guelph, and the surrounding areas. Visit our website at www.sleepeasyfinancial.ca to learn more.