Mortgage for Newcomers to Canada
Did you know that for newcomers to Canada, you do not need the highest credit rating to qualify for mortgage? Did you also know that small debts here and there could affect your rating immensely? These dynamics make looking for a house in Canada an exciting journey, but only if you have the right ammunition.
First, don’t panic – you are not alone in this. According to the Canadian Magazine of Immigration, one out of five Canadians is an immigrant, as of 2011. Canada’s population is at 35,749,600 according to 2015 estimates. Now you can do your estimation to see how just how many are looking for a home.
The Major Issues To Handle
I will tell you the reality of the housing market in the country. Newcomers to Canada are full of hope that within a few months they will get a home. However, the unfamiliarity of the market and other challenges leave many disappointed. Once the reality has set in, a majority of newcomers to Canada worry about issues such as:
- Getting mortgage approval
- Rising cost of housing
- Increasing mortgage rates
- Monthly mortgage payments
Good News! You Have Options
Lenders are ever relaxing their conditions and offering home loans designed for new immigrants. Here is how you can please your lender to get closer to fulfilling your dream of owning a home.
Get A Job Soon
As a new immigrant, you may want to get an employment for at least three months before approaching a mortgage lender. This is one of the most common requirements from lenders. Of course, others may only require you to prove your creditworthiness. This includes references from previous employers, work permits and such documents.
Learn About The Market
All mortgage markets have their unique characteristics, so take your time to understand how the Canadian market operates. For example, if you are planning to buy a condominium, you need to know the requirements for buying a stratified property.
Is your overseas credit history impressive? One thing you will realize is that you can use this history to get a mortgage. In my research, I found at least two institutions that use this method-TD Canada Trust and the Canadian Imperial Bank of Commerce (CIBC).
Request for Pre-Approval
If you are a new immigrant looking to secure a mortgage, you should give priority to pre-approval and this is why:
- You spend significantly less time when applying for mortgage
- Chances of your offer going through are manifold
- No time is wasted looking for irrelevant products
Prepare The Following Materials
As you may have already discovered, a lot of stress may be involved in the process of getting a newcomer mortgage. Therefore, it is important to have the paperwork ready to make the process as smooth as possible. Below are some of the documentations that the lender may need.
- Bank statements
- Employment letter
- Social insurance number
- Canadian passport or work permit
Finding The Best Mortgage Rates
It is true that homeownership can be one hectic process for newcomers to Canada. However, knowing what to expect and preparing in advance can quicken everything and possibly reduce cost. The good news is that lending agents can help in different ways, including advising on the best options and best mortgage rates available, whether in Ontario, Quebec, BC, Alberta, among others.