Welcome to Canada!
Navigating a real estate market in a new country can be overwhelming and can lead to new Canadians to assume that homeownership in this country is out of reach. However, with a little planning and the right advice, it is actually very attainable, even with as little as 5% down payment. If you have been in Canada for less than three years, have landed immigrant status, and have been employed in Canada for a minimum of three months, let's get you pre-approved for a mortgage!
The biggest challenge that new Canadians interested in homeownership may face comes from a lack of understanding of the process; often relying on information passed along from friends and family who immigrated years prior - this advice could be incorrect, irrelevant or outdated.
It is common for new immigrants to think that their status will require them to incur more fees, but the costs for new Canadians to buy a home typically do not differ much from those of current permanent residents. Like all other home buyers, new Canadians will need to pay legal fees, disbursements, land transfer taxes, appraisal fees, and title insurance fees when they purchase a home. And with respect to the down payment, qualified new immigrants can purchase with as little as 5% down.
To be approved for a mortgage, new Canadians will need sufficient savings and proof of stable employment. They will also have to provide either a satisfactory International Credit Report OR 12 months of bank account history with a Canadian financial institution that proves satisfactory rent payments (or a letter from a landlord) and 12 months' worth of utility bill statements that demonstrate adequate payments.
If the borrower is not able to provide either of these two requirements, they may still be able to purchase with a larger down payment.
New Canadians may be eligible for the federal government's First Time Home Buyers Tax Credit.
There are very specific guidelines under the New to Canada programs, and that's why it's important to speak to an experienced mortgage broker who is very familiar with these programs, and I have helped many new Canadians get the keys their new homes. Please give me a call today!