Finding a Home in Your New Country
When you leave your home to settle in a new nation like Canada, you’re taking a huge leap, and that can often be a daunting proposition. Thankfully, there are plenty of resources in place that can help immigrants adjust to life in their new home, and those include programs to make it easier to buy homes.
While new to Canada mortgage programs can be immensely helpful, they can also seem a little complicated if you’ve never heard of them before. Today, I’m going to use my expertise to help you learn more about how to get a mortgage if you and your family have just arrived in Canada.
Do You Qualify?
Of course, the first thing that you’re going to need to consider is whether or not you qualify for the new to Canada mortgage program in the first place. There are a few requirements for immigrants who want to find a home using this system, though most of them are easily fulfilled.
The first stipulation is that you have been living in Canada for less than three years, as this ensures that the program only applies to immigrants who have arrived recently. That being said, you’ll need to have been employed in the country for a minimum of three months, so the window to apply will be a little narrower than a full three years.
The next thing that you’re going to need is status as a landed immigrant, and if you’re applying for the new to Canada program in specific, it’ll be the last requirement.
There are also a few requirements for immigrants that want to get a mortgage of any sort, regardless of whether it falls under the new to Canada category. The only major hurdle is ensuring that you have your status as a permanent resident, though there are a few ways around that.
To get status as a permanent resident, you’ll need to have resided in Canada for a minimum of 730 days in five years. This amounts to around two years, and there are quite a few additional advantages to being a permanent resident.
If you would like to get a mortgage without permanent residency, you can still get one, provided you have applied to become a permanent resident, and you have a work permit.
The only other option if you’re not a permanent resident is getting a mortgage through CMHC, Genworth Canada, and Canada Guaranty, which are the default lenders.
The Details of Getting Your Mortgage
When you’ve made sure that you can get a mortgage in the first place, you can then start to see whether or not you will look good as a potential client for any lenders. As you would expect, lenders are a lot more confident when they feel like they will be paid back, and your credit score plays a large part in this.
You’ll want to make sure that you have a good Canadian credit score if you’re planning on getting a mortgage, and this can often be a hurdle for immigrants who don’t have long to build it up. To make sure that you build your credit score as soon as possible, apply for a credit card and pay it off at the end of the month every time.
The last thing to consider is that you’ll need to save up for a down payment on your mortgage as well, so keep a bit of money in your savings account every month so that you can be prepared.
I hope that this guide has helped you organize your thoughts. If you need any help with your new to Canada mortgage process, don’t hesitate to contact me, as I have plenty of experience in the field.