Many new immigrants wonder whether they would be able to get a mortgage, upon their arrival to Canada. Most private lenders would do their best to make you believe that they are the sole option to fund a new immigrant’s needs for a mortgage. Naturally this would cause a lot higher than normal lending fees and even more additional costs for any new files, quotes, and etc. However there are many cases in which a private lender might very well be the only way to go since some newcomers tend to face issues such as bad credit or lack of credit history in general.
The institutions are asking you for information…
Each financial institution would require checking your credit history in Canada, and for new immigrants this application is causing the problem. How can you prove that you are a good payer?
Are you a newcomer to Canada – less than 24 months and want to buy your first home?
Some of the problems that the banks have with new immigrants for the most part are that they have not had the time to build a solid employment record. Despite the fact that you might have an impeccable credit score abroad, you have not as yet managed to build your new established credit history in Canada.
You have a job for at least 3 months and a down payment of 5%. Request the help of a mortgage broker. Eligibility of the borrower:
If you lack established credit and are still struggling to prove your employment record then you certainly have a couple of good reasons for being cautious when requesting the grant of a loan. After all most banking institutions are looking after their own interest while in the business. Their goal would be to make money rather than give it away as a charitable event. There are however several banks that are quite open to new immigrants and they in fact have programs labeled “Welcome to Canada” which can help you establish yourself as a fully pledged member of society. Clearly these programs are not considered suitable for everyone but they do cover a large number of newcomers that are ready to buy a new home. As per usual, just like in any other matter there are several criteria which must be covered before any of these banks can give you a quote mortgages and some of them include a minimum of 35% down payment. This program can very well be coupled with an offer from some insurance companies which allow a permanent resident to put as little as 5% down. On top of this any non-permanent resident can get a loan of up to 90% of the property value.
As you can see there are definitely more than one way for an immigrant to obtain a mortgage, all you need is the help of a mortgage broker to help you understand your options and pick the best one for you.