New to Canada

New to Canada mortgages are available to folks who have established permanent residency within the last 5 years. (Some lenders require residency within 3 years or less).

Down payments required can range from 5% and up.

Policies differ a bit with each lender.

Here are some of the most relevant criteria:

High ratio financing: With minimum down payment (5%-35%), the mortgage must be insured by CMHC, Genworth or Canada Guaranty.

Generally this means that a minimum of 3 month’s work history will be required and credit history can be proven with alternate forms of credit such as up to a year of satisfactory rent payments, cell phone payments and or hydro/utility payments, etc.

Conventional financing is available where the down payment is 35% or more and the criteria is a bit less stringent, with proof of payments available to sustain the mortgage for 12 months or more being the most important. Income is not usually necessary.

Do expect to verify and document in detail the source of down payment funds for New to Canada mortgages.

Since each lender has assorted policies it is important to contact a mortgage broker to source out which company will have the best mortgage options to fit your situation.

New To Canada Information August 9, 2018