07 Oct What Are The Mortgage Options For Newcomers In Canada?

Posted at 15:54h in First Time Homebuyer Mortgage by

Are you a newcomer in Canada and planning to buy a home you can call yours? The journey to homeownership is both complex and complicated, especially if you are an immigrant and recently gained a permanent residency or citizenship. Finding the correct mortgage option and making the right mortgage choice can help you save thousands of dollars in the long run. 

In this blog, we’ll discuss the mortgage aspects that can help you make the right mortgage choice.

Mortgage Eligibility & Requirements for Newcomers

A newcomer in Canada is considered as an individual who –

  • is already a Permanent Resident (PR),
  • has immigrated to Canada within the last five years, or
  • has received confirmation of Permanent Residence from Immigration, Refugees and Citizenship Canada (IRCC).

Mortgage Options for Newcomers in Canada

  • Government Programs and Assistance

Newcomers can take advantage of a variety of government programs and services to help them become homeowners. The New to Canada Mortgage Program is provided by three mortgage default insurance companies: Canada Mortgage and Housing Corporation (CMHC), Genworth Financial, and Canada Guaranty.  

This program enables people with low credit history or restricted residency status to qualify for a mortgage. It ensures simple documentation requirements, flexible down payment requirements, and lower insurance costs for newcomers who are buying their first home and available for permanent, temporary, and non-permanent residents working in Canada with legitimate work permits.

  • Alternative Lenders and Mortgage Brokers 

Alternative lenders include banks and credit unions. These lenders consider variables other than traditional credit history. Other considerations include rental payment history, work stability, and foreign credit reports. 

Mortgage brokers have a large network and link eligible borrowers with these lenders. They can make the process easier and assist newcomers in finding lenders that understand their specific needs. They shop around to find the competitive mortgage rates and programs available. Not only this, they negotiate on the homebuyer’s behalf for better rates and products from lenders. 

  • Building Credit and Financial Preparedness 

Establishing credit and financial stability is an important step that newcomers must take when applying for a mortgage.  Applying for a secured credit card, making timely payments, and managing funds responsibly are some of the steps that might help you establish an excellent credit score. Setting up a consultation with expert financial advisors specializing in home buying can help newcomers make informed decisions.

Conclusion

If you are a newcomer and looking for a trusted mortgage broker who can help you get a first buyer home mortgage approved, rely on none other than Satbir Bhullar. With a wide lender network and a number of mortgage choices to select from, we help you get approved for a competitive mortgage deal at the lowest price possible. For more details, give us a call today.

 

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