Mortgage Blog

New to Canada and Seeking a Mortgage? We can help!

February 15, 2019 | Posted by: Brandi Pierik and Matthew Pierik - Red Deer and Calgary Mortgage Brokers

New to Canada and Seeking a Mortgage? We can help!

Have you immigrated or relocated to Canada within the past five years? I have access to some great new to Canada home loan options.

You may even be eligible under a New to Canada Program to purchase a property with as little as a 5% down payment.

If the property value is below $500,000, you can make a purchase for just 5% down. If, however, you’re buying a more expensive home – up to a million dollars – you’ll be required to pay 5% down up to $500,000, with an additional 10% down payment on the portion of the home value above $500,000.

Standard considerations

In order to qualify under a New to Canada Program, there are a number of things we’ll have to review to ensure this mortgage product is the right solution for you.

When it comes to income and employment, you must have a minimum of three months of full-time employment in Canada. But, if you’re being transferred under a corporate relocation program, you’re exempt from this rule.

And, depending on how much you intend to borrow for your mortgage in relation to the total cost of the property – your loan to value (LTV) – you must also provide specific credit documentation. Here are the typical credit requirements:

1. Borrowing 90.01-95% LTV
a. International credit report (Equifax or TransUnion) demonstrating a strong credit profile OR
b. Two alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternative sources required are: Rental payment history plus one other alternative source (hydro/utilities, telephone, cable, cell phone, and auto insurance)

2. Up to 90% LTV
a. Letter of reference from a recognized financial institution OR
b. Six months of bank statements from a primary account

When considering your down payment options, you may use traditional sources including personal savings, a non-repayable gift from an immediate family member(s), and proceeds from the sale of your property.

If you’re borrowing 95% of your purchase price, the down payment must be from your own resources. But, if you’re borrowing less than 95%, anything above the first 5% of the down payment may be gifted from an immediate family member or come in via a corporate subsidy.

Are you new to Canada and have questions about your Red Deer mortgage options? Do you want us to get a pre-approval in place with the best mortgage rates? Answers are a call or email away! Call Brandi Pierik, Dominion Lending Centres at 403-588-8657 or apply now for your Red Deer Home Loan at www.wehaveamortgageforthat.com

Back to Main Blog Page