Many people move to Canada with the the hopes of becoming a permanent resident or gaining employment. However, for many new immigrants, once you get here and get to know the beauty throughout Canada you decide to stay and make Canada your home. If you do then buying your own home may be the next dream that comes into your mind.
You should know, if you don’t have the right help, guidance and understanding when it comes to Canadian mortgage, the process can be rather tricky. This is especially true if you’re planning to buy a home in the very near future. We’re here to ensure you are informed about the things you need to do as a new arrival that will help you obtain a mortgage in Canada.
Are Your Finances and Documents in Order?
As you can imagine, you need to have your finances in order is your intent is to buy property. First, you’ll need to establish some financial gains or savings, as well as build some credit history. We’d strongly recommend a minimum of 6 to 12 months history, so that your mortgage lender has enough history to evaluate when making their decision to lend to you.
Here are a few other things you should know as a newcomer, to set yourself on the right path towards your home ownership dream:
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Open a new bank account and set up direct deposit with your employer
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Always keep records and receipts of your rental payments, never pay in cash
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Ensure your home utility bills are also well documented and paid up-to-date and on-time
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Consider a pre-paid/secure credit card to begin to establish your credit history, and always pay on time consistently
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Insured loans require a minimum of 10 percent down
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Uninsured loans come with a 35 percent down payment
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A 5 percent down payment may also sometimes be considered
When you keep track of your finances (spending and payments), this will be a greater help to lenders, making it much easier to review your financial information and behaviours.
Some Other Documented Proof You’ll Require
Keep in mind, you’ll have to provide documents too, such as:
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Pay stubs
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An employment letter from your employer
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Bank statements (12 months)
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Utility bills (2 – 3 months)
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Proof that you have enough for your down payment
Something else that will be considered by financial lenders is your intent to actually remain in Canada. For instance, if you’re here on a work visa, and it only has a 6-month validity, than this won’t work in your favour when applying for your mortgage, as it does not prove stability.
Before You Apply
Before applying for a mortgage or a pre-approval on a mortgage, you need to speak to an experienced mortgage broker. They are the best person to advise you on your options and they can find the best mortgage product to match your circumstances. So, there is no need to feel intimidated when it comes to applying for your first mortgage, with the proper help and support it will be much easier to accomplish your goals.
Although the process is very straightforward, first-time homebuyers do get overwhelmed during this process, simply because they don’t have the help or support they need. Speak to your mortgage broker to learn more about various mortgage solutions, information and requirements.
When we say YES! We stand behind our promise. ®