As we all know, Canada has seen a surge of international migration over the last few years so it’s a good time to review some of the details surrounding mortgages and how individuals new to Canada can qualify to be homeowners.
If you have a client who is already a Permanent Resident or has received confirmation of Permanent Resident Status, they are eligible for a typical mortgage with a 5% down payment – assuming the borrowers have good credit.
If they have limited credit, or have not yet qualified for Permanent Residency, there are still options! In fact, there are several ‘New to Canada’ mortgage programs through CMHC, Sagen™ and Canada Guaranty Mortgage Insurance. Please note, we will typically require a valid work permit that is valid up to 3 months post-purchase date.
To qualify for these New to Canada programs, the borrowers must have immigrated or relocated to Canada within the last 5 years and have had three months minimum full-time employment in Canada.
• For 90% credit, a letter of reference from a recognized financial institution OR six (6) months of bank statements from a primary account will be required.
• If they are seeking credit of 90.01% to 95% they need an international credit report (i.e: Equifax) demonstrating a strong credit profile OR two alternative sources of credit (i.e.: hydro/utilities, telephone, cable, cell phone or auto insurance) demonstrating timely payments (no arrears) for the past 12 months
As always, if they don’t fit into one box, I have other options available to consider! Depending on their residency status and credit history, there are many alternative or private lenders who may be able to fund their mortgage.
SO – if your New to Canada clients are unsure of their options or want to make sure they get the best mortgage product possible, please don’t hesitate to contact me. As a dedicated mortgage professional, I have access to dozens of lender options, which will allow me to find them the best options. I would love to set up a virtual appointment to discuss their financial history, goals and the mortgage process.