Moving to a new country could be an exciting experience, but it also comes with a lot of questions. Especially about mortgages! One big question that newcomers in Canada face is, “Can newcomers to Canada apply for a mortgage? Well, the good news is yes! In this guide, you will find all the answers regarding mortgages!
Understanding Mortgage Eligibility for Newcomers
When you live in a new country, you get to know their rules and eligibility for certain facilities. To help you understand mortgage eligibility, here’s what the lenders will look at:
- Your job and how much money you earn
- Your credit history
- Your residency status
- Your down payment
How Can Newcomers to Canada Apply for a Mortgage?
Can non-residents get a mortgage in Canada? Yes, and this is how you can apply:
Get a Job and Steady Income
Lenders want to know that you can pay back the loan. So, when you have a full-time job with regular pay, it will make your application much stronger.
Save for a Down Payment
You’ll need to show that you have money saved up for a down payment. If you’re a permanent resident, you might only need 5%. On the other hand, if you’re on a work permit, you might need 10% or more.
Build Canadian Credit
If you’ve just moved to Canada, you probably don’t have a credit score yet. That’s okay! Here’s how you can build credit:
- Getting a credit card
- Paying all your bills on time
- Not borrowing too much money at once
Choose the Right Bank or Lender
Some banks in Canada have special programs for newcomers. These programs are designed to help people with no Canadian credit history.
Work With a Mortgage Specialist
Many newcomers go for a mortgage advisor. You can find reliable lenders like Asim Ali, who offer the services that you need. These experts will guide you in finding the best deals.
Credit History: Canadian vs. International
Are you concerned about your credit history? Here is some information that will help you to see the difference:
| Feature | Canadian Credit History | International Credit History |
|---|---|---|
| Where it’s used | Built in Canada using credit cards, loans, and bill payments | Built in your home country before moving to Canada |
| Accepted by all lenders? | Yes, all lenders in Canada use it | Not always. Some lenders may not accept it |
| Helps with mortgage approval? | Yes, strong credit makes approval easier | It might help, but you may still face extra steps |
| How to improve it | Use a credit card, pay bills on time, and borrow responsibly | You can’t change it once in Canada, but you can show proof |
| Other options | Build credit by using Canadian financial tools | Use alternative credit like rent or utility payment history |
What Are the Newcomer Mortgage Programs in Canada?
Many banks in Canada offer special mortgage programs for newcomers. These programs will make it easier for you, even if you are new to the country. These are some of the great options for you:
- Rbc newcomer program
- TD new to Canada program
- Scotiabank startright program
- Cibc newcomer program
Government Initiatives and Recent Changes
Canada’s Government is trying to make housing easier for newcomers. As of January 1, 2023, there’s a ban on buying homes for some non-Canadians. However, this will not harm you if you are among these people:
- Permanent residents
- Work permit holders
- Refugees
Conclusion
It is quite okay to have questions and get worried. So, can newcomers to Canada apply for a mortgage? The answer is yes! Contact any advisor you want so that they can handle the stress for you! With the right help, your application will be stronger. If you think this blog guided you, don’t forget to reach out!