Accessing Homeownership as a Newcomer to Canada
Planiprêt
Jan 27, 2025
Have you recently immigrated to Canada and think that buying a property is out of your reach? Think again. With good planning and sound advice from real estate and mortgage brokers, it can become a reality.
Debunking Some Common Myths
Newcomers often rely on information provided by their family or friends. While this is understandable, some information may be incorrect or outdated. Here are two common myths:
Myth 1: Immigrants pay additional fees.
Myth 1: Immigrants pay additional fees.
FALSE. Newcomers pay the same fees as permanent Canadian residents. They must pay for the inspection, notary, and land transfer tax (also known as the welcome tax).
Myth 2: Immigrants need to provide a large down payment.
Myth 2: Immigrants need to provide a large down payment.
FALSE. A 5% down payment is sufficient to buy a property. However, mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) will be required. The premium amount depends on the 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:
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).
Practical Tips
To show a financial institution that you are trustworthy and capable of repaying a mortgage, here are some tips:
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.
Contact Us
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.
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.
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