If you have plans to move to Canada in the near future or you’ve already made the move and you’re thinking of buying a home to establish your roots, it’s often tough to know where to start when seeking a newcomer mortgage in Canada.
Working with a mortgage agent is your first step, as I understand the New to Canada mortgage programs available to meet your needs, and I can ensure you’re well prepared to qualify for a mortgage before you set out home shopping.
Two key areas of focus when seeking a newcomer mortgage in Canada are employment and credit.
In order to qualify for a mortgage, you’ll need a minimum of three months’ full-time employment in Canada. (Note: you’re exempt from this rule if you were transferred under a corporate relocation program.)
You’ll also need an established Canadian credit or 12 months of bank statements. Lenders are also interested in rental payment history or payment history for utilities, phone, insurance, etc.
Since building your credit history takes time, It’s important to start working towards this goal as soon as possible.
3 steps for building Canadian credit history:
- Open a bank account and make regular transactions to demonstrate your ability to manage money.
- Apply for a credit card and use it regularly. Ensure you pay the amount owing in full every month and avoid carrying a balance.
- Take out a loan and demonstrate responsibility by consistently making payments on time.
Budgeting for your down payment
Another significant step in the homebuying process includes establishing a budget and setting money aside for your down payment.
There are programs available that allow for as little as a 5% down payment. Your down payment can come from a variety of sources including personal savings, a non-repayable gift from an immediate family member or proceeds from the sale of a property.
Have questions about your newcomer mortgage options in Canada? Answers are just a call or email away!