" Get your New-Immigrant-Home-Ownership Kit now! "
If you are a newcomer to Canada, you may not have to wait for permanent resident status to realize your dream of home ownership in this country. You may be able to purchase a home with as little as 5% down and obtain a mortgage with a low, competitive rate through one of our major mortgage insurers. No minimum period of residency is required. To be eligible to take advantage of programs for newcomers, most mortgage insurers only require that you have immigrated or relocated to Canada within the last 3 years.
The following are other minimum requirements for most lenders/insurers:
- 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
- Borrower must prove income via third party validation of income such as letters of employment, paystubs, etc.
- Other documents such as Letter of Reference from a recognized financial institution, 6 months of bank statement from primary account, Purchase and Sale agreement, and/or Downpayment confirmation may be needed.
- Must have a valid work permit or obtained landed immigrant status
For 95% loan-to-value, down payment must be from borrower's own or traditional resources (i.e. Applicant's savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (< 50% of minimum required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency).
For loan-to-values of less than 95%, the remainder may be gifted from a corporate subsidy or an immediate family member, or from other non-traditional sources (i.e. any source that is arm's length to and not tied to the purchase or sale of the property such as borrowed funds, gifts, 100% sweat equity and lender cash back incentives.)
All debts held outside of the country must be included in the total debt servicing ratio. (Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
Note: This program is not available to Diplomats or any other foreign political appointed individuals who do not pay income tax in Canada. Borrowers without third party validation of income and individuals with diplomatic immunity are not eligible. Other documents usually required for home buyers must be submitted to the lender. See First-time Home Buyers section of our site to read more on documents required.
Individuals can access their scores and credit reports from the following credit reporting agencies:
- EQUIFAX: https://www.econsumer.equifax.ca/ca/main
- EXPERIAN: http://www.experian.ca/
- TRANSUNION: http://www.transunion.ca/
For newcomers with permanent resident status with limited Canadian credit history or unavailable foreign credit bureaus, alternative sources of payment history can be considered. Examples of alternative sources of credit:
- Confirmation of payment of rent or room and board via letter from landlord and bank statements. (Letter from landlord must indicate the following: name of tenant, monthly rent, length of tenancy, payment history. Bank statements must support the amount of rent and timeliness of payments outlined in the letter. Rent payments should be timely, i.e. no thirty-day late payments.) plus
- One additional obligation or documented regular savings, for the preceding 12 months. If confirmation of rent payments is not available, payment over the preceding 12 month period of any three regular periodic obligations including but not limited to: utilities, cable, childcare expenses, insurance premiums, documented regular savings. Payments should be regular and direct (i.e. not payroll-deducted). No more than one thirty-day late payment on non-rent obligations.
Applications that fall outside the late payment guidelines above will be considered on a case-by-case basis.
Because we recognize how important it is for new immigrants to get good information, we have put together a package that will help you settle in this country. Our "New Immigrant Home Ownership Kit" package will help you familiarize yourself with our systems, buying a place, finding a realtor to work with, saving money, budgeting, etc. It also offers our free report for First-time home buyers, as well as coupons you may use to get free products and services or consultations with our business partners. It will include a directory of useful resources for additional services such as accountants, lawyers, realtors, etc. To find out more, simply email us at info@canadamortgagehub.com with the "New Immigrant Home Ownership Kit" in the subject line or call us at 1-888-853-8372.
