
Accessing Homeownership as a Newcomer to Canada
Myth 1: Immigrants pay additional fees.
Myth 2: Immigrants need to provide a large down payment.
Eligibility Requirements
To qualify for a mortgage, newcomers need sufficient savings and proof of stable employment, just like native Canadians. The required documents vary depending on the down payment:
- Down payment of 10% or less: A recommendation letter from a recognized Canadian financial institution or 6 months of bank statements.
- Down payment of more than 10%: An international credit report showing a strong credit profile or two other sources of credit proving timely payments over the past 12 months (e.g., a letter from the landlord and bank statements confirming rent payments, or a letter from a creditor proving the payment of certain bills).
To show a financial institution that you are trustworthy and capable of repaying a mortgage, here are some tips:
- Open a bank account and use it regularly.Pay all your bills on time.
- Take out small loans from your financial institution to prove your ability to repay debts.
- Get a credit card, use it frequently, and pay off the full amount before the due date.
- Try to stay with the same employer for a long period to demonstrate your stability.
As mortgage brokers, we are here to help you achieve your dream of homeownership. Contact us today to discuss your mortgage options and take the first step towards your new home! Our services are paid by the lenders you choose, so you have nothing to lose.