Newcomers to Canada
People from all over the world immigrate to Canada. The newcomers to Canada add to Canada’s population growth and offer significant opportunities. Newcomers to Canada will seek shelter in all its forms. Mortgage opportunities should be explored as a number of programs are available.
- Newcomers who have permanent resident status are eligible for all CMHC and Genworth Mortgage Loan Insurance products (subject to product specific eligibility requirements).
- For permanent residents where there is limited Canadian credit history and/or where foreign credit bureaus are unavailable, CMHC and Genworth continue to consider alternative sources of payment history for Loan-to-Value ratios up to 95% on a case-by-case basis.
- Newcomers who have non-permanent resident status are eligible for CMHC and Genworth insured financing for up to 90% loan-to-value ratio for the purchase of a (one-unit) owner-occupied residential property.
- No additional fees or premiums are applicable as a result of residency status.
- No minimum period of residency in Canada is required.
Benefits for Newcomers
- Access to homeownership – Newcomers with permanent residence status are able to purchase a home with as little as a 5% down payment.
- Competitive Interest Rates – Access to CMHC-insured financing, and as such, competitive interest rates from many lending institutions in Canada.
- Availability – Everywhere in Canada with no maximum loan amount.
- Non-Residence Lending
Non-residence lending is a program for Canadians living abroad and non Canadian citizens that wish to purchase a property in Canada.
Take note that various lenders have restricted lending areas. As well, in some cases, certain lenders will not lend under this program.
35% is the required minimum down payment, which is to come from one’s own resource. The down payment must be available in a Canadian bank account prior to the mortgage funding. The down payment may not be in the form of a gift and proof of funds for 90 days prior to the mortgage closing is also required.
Proof of Income
To prove income, a letter of employment from your current employer confirming length of time you have worked at the company, your annual salary including any bonuses and confirmation that you are not on probation and your salary (or hourly with guaranteed full time hours), are required. A recent paystub (issued within the last 60 days) will also be necessary.
Proof of Credit
If a Canadian credit bureau is unavailable, an international credit bureau or letter of reference from the bank you currently deal with should be sufficient.
Some lenders require a year’s worth of mortgage payment history in a Canadian bank account before they will approve you for a mortgage.