Mortgage Blog

The RIGHT WAY to get a Mortgage

New To Canada & Looking For A Mortgage in Maple Ridge or Pitt Meadows?

July 20, 2016 | Posted by: Tania Kalinich

If you are new to Canada, then you will not have an easy time getting a mortgage. As an immigrant, you would not have a work history or a recorded credit history in the country. Those two are the most crucial factors that make new to Canada mortgage options limited. Many people feel that getting a mortgage is difficult because one is an immigrant. That is not the case. Many immigrants come over with high paying jobs or start up a business that churns substantial profits. The immigrant status is not the main hurdle here. It is the lack of a credit history and obviously few or no federal or provincial records, be it education, employment or identification, history of old addresses or the number of years one has been in the country. Immigrants, who have lived here for several years, say ten or fifteen, find it as easy to get a mortgage as a Canadian.

Fortunately, there are mortgage brokers such as myself, who can help immigrants to get a Canadian mortgage. Typically, banks and mortgage lenders raise the bar for qualification when it comes to immigrants. They ask for a higher down payment just to reduce their exposure and thus risk. They look for very high incomes which ensures them that the immigrants are financially well off to keep paying. They also require letters of recommendations or a cosigner at times to be doubly safe.

All these eligibility factors are a tad unfair because not every immigrant would be able to furnish those needs. Most immigrants would not be in a position to make a hefty down payment, even if they earn a handsome salary or earn sufficient money through their businesses.

There are some new to Canada mortgage options that treat immigrants in the same or similar way as the citizens. Immigrants can get up to 95% of loan to value mortgages, the income requirements can be relaxed, immigrants can apply for mortgages in just three years of having stayed in Canada, pay standard rates of interest applicable to all which means the premiums or monthly payments are also what citizens would pay and would get similar term options.

To increase the chances of qualifying for new to Canada mortgage options, immigrants must have valid work permit and should be able to verify having landed immigrant status, must provide income proof, down payment confirmation, purchase and sale agreement and a letter of reference from some known and reputed financial institution or a detailed bank statement of the primary account. For up to 95% of loan to value, immigrants must be able to furnish an international credit report. One can get it generated by paying a small fee. There are many international credit bureaus that cater to this but one must not attempt to get such a report if their credit history in the country of birth is not very encouraging. Rental payment history, any loan and its subsequent repayment in Canada, history of utility bills and account of investments or assets are also going to help to qualify immigrants for mortgages in Canada.

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