As a newcomer to Canada the idea of purchasing a home is exciting, and likely a little intimidating. You may worry that your bank won’t lend to you because you are new to Canada. Perhaps you haven’t had a lot of time to build credit history and establish credit or maybe you haven’t been employed here for a very long time.
Even if you have/had excellent credit and owned or own a home in your country of origin, mortgages for new Canadian immigrants may be something you think will be challenging. However, the truth is that obtaining a mortgage as a new Canadian – isn’t overly complicated at all.
The trick is to work with a mortgage broker who understands the Canadian mortgage industry and has access to a wide variety of lenders who will be willing to lend to you. A qualified mortgage broker from our team will be happy to help you find the right lender to fulfill your dream of owning a home in Canada.
Canadian immigrants seeking a mortgage in Canada simply need to apply. Applying for your new to Canada mortgage comes with a few simple guidelines. First, you should know that in most instances a new Canadian must be employed for at least 3 months before they can be considered eligible to apply for a mortgage.
Why 3 months? For many employers in Canada there is a minimum 3-month probationary period at the start of a new job. Mortgage lenders want to ensure that borrowers have passed their probationary period as employees. Once the initial 3 months of employment has passed, there is a much greater assurance of job stability. A borrower employed for longer than 3 months is less likely to lose his/her job and remain able to afford monthly mortgage payments.
For borrowers who anticipate a fluctuation or change in income over time (as can happen with new employment) we can even discuss your rate options. Perhaps you have been promised a raise or compensation/bonus structure that will increase significantly year over year. We can review the differences between fixed rate mortgages and variable rate mortgages to ensure that you’re getting the best product and terms for your needs.
With at least three months of employment history permanent residents (landed immigrants) can qualify for 95% financing. Conversely, temporary residents (non-permanent residents or non-landed immigrants) can qualify for 90% financing respectively.
As is the case in most mortgage applications, credit is an integral part of being approved for a mortgage. Providing an international credit report from your country of origin will help us to approach lenders who will be willing to work with you. If you have established credit in Canada, a Canadian credit bureau report will also help.
In addition to supplying evidence of employment in Canada that exceeds 3 months, your employment history prior to your current position can be of assistance. We recommend increasing your chances of getting an approval by supplying new potential lenders with references.
References from previous employers (as well as your bank or investment company) can help tell your story. We want to sell you as a reliable borrower who can accept the responsibility of a new mortgage in Canada and every little bit helps.
Ultimately having credit in Canada is one of the best means of demonstrating your worth to a potential lender. If you haven’t had time to establish credit or build credit history in Canada with traditional credit sources (credit cards, bank loans, overdraft etc.), there are additional ways to establish your consistency as a bill payer.
Many lenders are willing to review your history paying utility bills, your banking history (bank statements), and even letters from landlords. Basically, anything that helps to confirm continuity of payments will help your mortgage application.
Our specialty is assisting borrowers who face challenges when applying for a mortgage in Canada. Often our clients face problems due to income or credit history. Being new to Canada may mean you have both income and credit history concerns. We have an advantage over other lenders because our many lending partners are willing to work with unique and challenging situations that a bank may not.
With many years of experience, we know exactly who to approach on your behalf to suit your specific lending needs. The strength of our network is your advantage as a borrower. Our common-sense approach to lending will help secure the best mortgage for you.
We can offer flexible lending requirements that work with your income and credit history. To explore our complete list of mortgage services, please click on the service on our sidebar menu.
We provide mortgage services to new Canadians who want to ensure they have an advantage when applying for a new to Canada mortgage. We are more likely to secure the right financing for you than you would find elsewhere. Skip the bank’s stress test, avoid the hassle and disappointment of being turned down.
If you’re a newcomer to Canada and considering your first mortgage here, call the brokerage with more than 30 years of experience.
We recommend booking a free consultation with our team to review your mortgage application. Allow us to complete a free review of your finances, contact us today. We would love to add you to our growing community.
|Term||Posted Rate||Our Rate||Claim This Rate|
|Home Equity Line of Credit||Prime +1%||Prime +.50%||Claim Rate|
|Fixed 1 Year||4.50%||3.09%||Claim Rate|
|Fixed 2 Year||4.65%||3.39%||Claim Rate|
|Fixed 3 Year||4.65%||3.79%||Claim Rate|
|Fixed 4 Year||4.65%||3.99%||Claim Rate|
|Fixed 5 Year||4.89%||4.14%||Claim Rate|
|Variable 5 Year||5.80%||3.2% (prime -.95%) Net Rate 2.25%||Claim Rate|
|Fixed 10 Year||5.90%||4.54%||Claim Rate|