The New to Canada Mortgage plan allows potential home buyers that have immigrated to Canada within the past five years the opportunity to buy a property with as little as 5% down. This program is based on the fact that Canadian Mortgage Insurers, such as Genworth, are willing to provide New to Canada borrowers with default insurance. Because of this program, mortgage lenders have very little risk in offering mortgages to borrowers new to this country. By having products like this, it allows families that are new to Canada start building equity quickly, and ultimately set their families up for future success.
Now, you may think that “great, this program is available, but it must be almost impossible to qualify for”. However, this can’t be farther from the truth! Here are some of the main criteria that you would have to meet in order to secure this type of mortgage:
- You have either landed immigrant status, or are a permanent resident of Canada.
- A minimum of 3 months of full-time employment in Canada. If you are in Canada due to a corporate transfer, you are eligible right away.
- Credit verification – there are a few options. You can provide an international credit bureau report, or you can provide 12 months’ worth of rent payments here in Canada. You cannot have ever filed bankruptcy in the past.
Once you provide the supporting documentation to prove the stipulations above, you are able to qualify for a mortgage based on the lenders normal guidelines for a high ratio mortgage. As always, it is best to reach out to an accredited mortgage professional. They will be able to guide you through this process as your trusted advisor, and ensure that you find the mortgage solution that works best for you and your family.
For more information on the qualifying guidelines of this product, please contact us directly. We will be happy to personally advise you on your own unique situation.