New to Canada Mortgages
Are you a new immigrant in Canada? Are you interested in buying a home, but struggling to figure out how to secure a mortgage?
If you have been turned away by mainstream lenders because you don’t have a proper credit history and you’re unsure what to do next, then we are here to help.
Most new immigrants in Canada will not have a proper credit history when they apply for their first mortgage. Most newcomers don’t realize that programs and mortgage alternatives exist to support them achieve their home ownership dreams.
At Main Street Mortgage, our team helps new Canadians secure a mortgage for their first home, despite being self-employed or lacking a proper credit history. We understand the options available for new immigrants and we can help you find a program that will fit your specific situation.
Find out how we can help with a New to Canada mortgage.
Mortgage Programs for New Immigrants in Canada
If you are a new immigrant in Canada and you’re trying to secure a mortgage, there are a number of options available. However, your ability to apply for a mortgage will depend on three main factors:
- Your status as a permanent resident in Canada
- Your credit rating in Canada
- The size of your down payment for a home
To apply for permanent residency in Canada, you will need to have been physically present in Canada for at least 730 days (2 years) in a 5-year period. In other words, you will need to have been living in Canada for a minimum of 5 years. If you do not have permanent residence, you will need to have submitted an application for residency and hold a current work permit, in order to apply for a standard mortgage.
If you are looking for a standard mortgage, you must also have a good credit rating in Canada. Since this can take some time to build up, there are alternative ways to provide a credit history. These alternative ratings will qualify you for various New to Canada programs, which are offered by Canada’s three default mortgage providers:
- Genworth Canada — New to Canada Program
- Canadian Mortgage & Housing Corporation (CMHC) — Housing for Newcomers
- Canada Guaranty — Maple Leaf Advantage
To learn more about these mortgage programs, and other alternative credit rating options, click here to read our blog about mortgages for new immigrants in Canada.
Tips for Securing a Mortgage as a New Immigrant
If you’re a new immigrant in Canada who is looking to buy their first home in our country, here are a few quick tips to help you get started:
- Build up your credit. Although it may take time, a good credit rating will help you secure a better mortgage in the future. Apply for credit cards, use them, and pay them off each month. You can also apply for loans from the bank. Besure to pay everything on time — including your rent, cell phone bills, and utility bills.
- Save for your down payment. A larger down payment will make it easier to secure a mortgage for your new home in Canada. In order to qualify for New to Canada mortgage programs, you will need to save at least 10% of your new home’s purchase price.
- Apply for permanent residency in Canada. If you have been in Canada for close to 5 years, then you should start planning to apply for permanent residency. Even if your application is not yet approved, starting this process can help you qualify for New to Canada mortgage programs.
- Keep a record of your income — and try to stay with the same job. Keep your employment contract, or pay stubs, from any jobs that you have held in Canada so you can show your employment history and prove you have the income to support a mortgage. You should also aim to avoid changing jobs too often as this can be seen unfavourably by lenders.
- Find documentation to prove your good credit history. In addition to tracking your income, keep records of payments made for rent, utilities, insurance, and cell phone bills. Bank statements that document your savings can also be helpful. If you can obtain an international credit report, this will be useful in your mortgage application process.