Being new to Canada will be an exciting time, but it can also come with many challenges. If you would like to buy a home in Canada you will be applying to a mortgage program for new immigrants in Canada, commonly referred to as a New to Canada mortgage.
Let’s have a look at a few myths about mortgages for Newcomers.
Myth: Newcomers to Canada will not be able to obtain a mortgage from a large Canadian bank.
Fact: There are a few banks who understand that you and your family have unique needs and offers special mortgage programs designed for Newcomers.
Myth: Newcomers cannot qualify for a mortgage if they do not have a well-established credit history in Canada
Fact: As long as you meet other eligibility requirements, you may qualify for a mortgage even with limited Canadian credit history.
Who is considered a Newcomer to Canada?
A newcomer is someone who has immigrated to Canada within the last 5 years and is already Permanent Resident or who has received confirmation of Permanent Residence from Immigration, Refugees and Citizenship Canada (IRCC).
In order to qualify for a mortgage, the lender will look at your ‘Status’ in Canada.
- You must have immigrated or relocated to Canada within the last 60 months.
- You must have a valid work permit or obtained Permanent Residency
It is true that the lender will require some Credit history in order to establish your Credit worthiness. Here are some documents that could be accepted:
- An international credit report (Equifax/TransUnion) demonstrating a strong credit profile or 2 alternative sources of credit demonstrating timely payments (no arrears), for the past 12 months.
- The two alternative sources are: Rental payment history confirmed via letter from landlord and bank statements
- One other alternative source (hydro/utilities, telephone, cable, cell phone and auto insurance) to be confirmed via letter from the service provider or 12 months billing statements.
Our team of mortgage brokers have extensive experience helping Newcomers apply for a New to Canada mortgage and we can help match you with the right program for your specific situation. Don’t delay contact us today to assist you.
Original article: www.genworth.ca