Best Canadian Mortgage for Newcomers

Canadian MortgageWelcome to Canada!
Canada loves it’s newcomers and makes it much easier to purchase your home here in the first three years of landing.

Usually, in order to get a mortgage, Canadians must be employed for a minimum of three months before they are eligible for a Canadian mortgage. This lender rule ensures that employees have passed the standard probation with the new employer. On top of that, you’ll be asked to show your credit activity and patterns, either by providing a credit report or through alternative sources. An example of an acceptable alternative is a landlord’s letter showing twelve months of on-time payments, utility bills that show regular payments being made for at least a year.

People who are landed immigrants and have been employed for a minimum of three months can get up to 95% financing of their home in Canada, as long as they have a strong international credit report or can provide alternatives to the local credit rating.

People who are landed immigrants and are not working yet can get a 65% mortgage at best rates without even showing a source of income.

You’ll need to show a your status of residency (PR), a substantial down payment (35% or more), and prove you can carry the monthly payments without a local income. In order to qualify for “New to Canada Program”, you must:

  • Have immigrated to Canada within the past 3 years
  • Have a proven landed immigrant status
  • Have a letter of reference from a recognized financial institution
  • Show liquid assets equal to six months of mortgage principal, interest and property taxes (only in some cases)
  • Show additional liquid assets equal to 25% of the property’s purchase price (for borrowers wanting 75% financing)