How Can New Immigrants Qualify For a Mortgage in Canada

Are you a recent immigrant to Canada and looking to buy a home? The Newcomer’s Mortgage Program is designed to help you secure a mortgage, even if you’re in the process of building your Canadian credit history.

An Introduction to the New to Canada Mortgage Program

The Newcomer’s Mortgage Program is a beneficial initiative for those who have recently immigrated to Canada and are interested in buying a home. This program can assist you in securing a mortgage even if you’re still establishing your Canadian credit history. However, there are certain important considerations and eligibility criteria that you need to be aware of before applying.

Eligibility Criteria for the Newcomer’s Mortgage Program

To be eligible for the Newcomer’s Mortgage Program, you must meet the following criteria:

  • You must be a permanent resident of Canada.
  • You must have immigrated or relocated to Canada within the last 60 months.
  • You must have at least three months of full-time employment in Canada.
  • You must have a minimum down payment of at least 5% of the home’s purchase price.
  • Your ratios (GDS and TDS) must not exceed 39% and 44%.
  • Your income must be stable.

Please note that not all newcomers to Canada will qualify for this program with a traditional lender. Some borrowers might need to put down a minimum of 20% if they don’t qualify under this program..

Rules of the Newcomer’s Mortgage Program

Mortgage rules are in place to protect Canadians from overstretching their finances. These rules include:

  • They must qualify at at the greater of the qualifying rate of 5.25%, or 2% higher than the mortgage contract rate.
  • Down payment is to be from own resources (minimum 5%), the remainder may be gifted from an immediate family member
  • Only income that is declared in Canada can be used to qualify.

How to Increase Your Chances of Approval

Here are some tips to increase your chances of getting approved for a Newcomer’s mortgage:

  • Get pre-approved before you start looking for a home. You will know how much you can afford to borrow, and will make the home-buying process easier.
  • Establish a Canadian credit history. You can start building one by applying for a credit card with a security deposit. Get in touch with us if you need more information on this type of credit card.
  • Start saving for a down payment – the more you save for down payment, the lower your mortgage payments will be.
  • Make sure your finances in order. This starts with having stable income, and not having too many expenses.
  • Get your documentation in order. You will need to provide proof of your income by way of work letter, pay stubs, tax returns; assets used for down payment by way of a bank statements; and list of your debts.
  • Start the process. Work with a mortgage professional that is committed to helping newcomers navigate the financial landscape. At TheBroker.ca Ltd., we’re here to guide you every step of the way. Our belief is that everyone deserves a chance to own their home, and we’re here to help make that a reality. We work with multiple lenders, and we can help you understand the different types of mortgages available, and which one might be the best fit for your financial situation, specifically those aimed at assisting newcomers like yourself.

At TheBroker.ca Ltd, we are constantly looking for ways to provide helpful advice related to mortgages, current mortgage rates, and more. If you have any questions or need further assistance, we offer a complimentary no-obligation consultation.

Feel free to reach out to us at (519) 252-9665 during our regular business hours. Alternatively, you can fill out our contact form, and your message will be promptly emailed to us. We value your time and inquiries, and we make it our priority to respond to all messages within one business day. When reaching out, please provide us with your contact details, a brief overview of your mortgage needs, and the most convenient times for you to have a consultation. We look forward to assisting you with your mortgage.

This article was brought to you by TheBroker.ca Ltd., a mortgage brokerage that is licensed with the Financial Services Regulatory Agency of Ontario (FSRA), which regulates businesses in the financial sector. The Principal Broker Sash Trajkovski has over 20 years of real estate and mortgage experience in the Ontario marketplace. You can verify our licenses by visiting the following links from FSRA’s website: our corporate license and Principal Broker license. Our mortgages services are available to all residents of Ontario. If you’re in Ontario and looking for more personalized advice and information, consider booking your Complimentary Consultation today, and let us help you understand the details that will guide you on your path to a suitable mortgage solution.

Disclaimer: Please note that this information is current as of the date of publication and is intended to be general in nature. It is not intended to provide legal, tax, financial, or other professional advice and should not be relied upon as such. Always consult with a professional for advice tailored to your individual circumstances.

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