New to Canada
Mortgage For Newcomers To Canada
Since newcomers to Canada have a new credit rating and short work experience, finding a mortgage is not easy.
If you are a new immigrant in Canada, you might be eligible for the New to Canada Mortgage Program.
Applicants must meet the same credit, employment, income, debt service ratios, and down payment criteria as regular applicants, but the lender can be flexible on employment verification and credit rating requirements.
Employment and income – You need a letter of employment and recent paystub, sometime most recent T4 and most recent NOA.
Down payment verification: verifying the source of the applicant’s down payment.
Credit verification - Alternative credit references may be accepted by lenders, such as: Proof of payments for the previous 12 months, including rent, utilities, and savings.
We can help you determine if you meet the requirements for Mortgage For Newcomers To Canada by calling 416-900-1425.
How to apply
For new immigrants, lenders will recognize alternative credit references such as:
- Confirmation of rent paid, plus savings for the previous 12 months.
- Confirmation of payments such as utilities, cable, childcare, for the previous 12 months.
- A letter of reference from a bank and six months of bank statements.
Some lenders will also recognize and accept an international credit report.
A High-Ratio Mortgage
For new immigrants who require high-ratio mortgage financing, less than 20% down payment, with no Canadian credit history, lenders will base their decision on the application as a whole, taking into consideration net worth, employment history, and the property being purchased.
To be approved for a conventional mortgage with a prime lender, a new immigrant applicant must:
- Be considered an acceptable credit risk based on a bank reference from the county of origin and or an international credit report.
- Have other assets (net worth)
- Have employment history in Canada
If the new immigrant applicant does not qualify for a high ratio mortgage under the bank guidelines, and has credit and/or income issues an alternative lender may be able to help.
Call us 416-900-1425 to find out if we can assist you in determining if you meet the requirements for Mortgage-For-Newcomers-To-Canada.