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New to Canada Mortgage

Being a recent immigrant to Canada and a home buyer can be exciting yet stressful. Fortunately, various government programs and incentives are made available for new Canadian residents to get on the road to owning their own homes.

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Get approved for special programs and incentives exclusive to New to Canada residents.

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There are a few things that borrowers would want to know more about this mortgage solution. Contact your local mortgage broker or book a free consultation with one of ours for more details.

Minimum Down Payment Mortgage

As Newcomers to Canada, home buyers can qualify for a minimum down payment mortgage with mortgage insurance provided by  Canada Mortgage and Housing Corporation (CMHC).

No Credit Score, Not A Problem

Borrowers without established credit history because they are newcomers to Canada will benefit the most from these mortgage programs that are designed specifically for new residents in Canada. There are conventional and alternative lenders who will work with the borrower's financial situation.

Permanent and Non-Permanent Residency

Mortgage financing insured by CMHC is available to home buyers who are newcomers to Canada regardless if their residency status is permanent or non-permanent.

Trusted Lenders

At Richmond Hill Mortgage Broker, we work with lenders who are reputable and have established outstanding levels of customer service, integrity, and compliance with regulatory authorities.

Buying a Home As a New Immigrant in Richmond Hill

Buying a home in Richmond Hill, or Canada in general, can be challenging, especially if you do it alone. There's a lot to consider when moving to a new country: taxes, buying a place, and employment options, to name a few. Figuring out how to buy a home as a new immigrant in Canada might have you stressed! But don't worry, we've got you covered with this article that breaks down the fundamentals of searching for a mortgage and home buying process as a new immigrant.

What Are the Different Ways to Buy a Home in Canada?

Buying a home is one of the most significant purchases you will ever make, so it's essential to understand your options and choose the one that is right for you. While some people can buy a home in full with cash, most people have to buy their first house with a minimum down payment, and some are gifted a down payment from family members. You can buy a home in Richmond Hill with a minimum down payment, and the remaining balance is paid in a mortgage loan from banks or credit unions. There are several ways to accomplish this task. Some people do everything themselves, while others rely on licensed professionals with insider knowledge of the industry to help them get the best deal in the market.

New immigrants in Canada do not have to wait for their credit score to be established before they can buy their first house with a mortgage. When in doubt, speak with a mortgage broker near you to find out more details.

Everything You Need to Know About Mortgages in Canada

Buying a home may seem intimidating to new immigrants in Canada, but it doesn’t have to be. If you are considering buying your first home, reach out to a licensed mortgage broker in Richmond Hill who will give you a basic understanding of the mortgage process and a few insider tips to help you get started on your new home. To help you understand the process end-to-end, it can be broken down into six simple steps.

  1. Mortgage Preapproval with a mortgage broker in Richmond Hill

  2. Choosing between Fixed vs Variable Rate and comparing a conventional vs alternative mortgage lender, whichever has the best offer

  3. Apply for Mortgage Approval

  4. Mortgage Underwriting

  5. Mortgage Closing with a real estate lawyer

  6. Mortgage Renewal at the end of the mortgage term

 

One of the most crucial choices you'll make regarding your mortgage is what type of financing you want to go with, as it can significantly impact your financial health. That's why you must take the time to find a reputable lender with great rates so you can save money in the long run. Also, try to find a lender who will allow you to include the closing cost in your new loan, which will help you avoid paying for it out of pocket.

What to Look Out for During the Home-Buying Process

When you are new to Canada and want to buy your first home, you should know a few things. Buying a home is a memorable and exciting time. The new house symbolizes your success and the hard work you put in to reach where you are now. For many people, buying a home is both an exciting and overwhelming process. You may have questions about everything from mortgages and home loans to interest rates and property taxes.

 Before you start shopping for your new home, check out our tips for getting the best deal:

  1. When looking at homes, ensure you're looking at the features and location you want, not just what's available.

  2. When hiring a real estate agent, look for someone with an excellent reputation which has helped previous clients find properties like yours in the neighbourhood you want.

  3. Make sure you have contacted at least one mortgage broker and one bank representative to discuss your mortgage options. You may be surprised that bank presentations do not necessarily have the range of options you need for your situation. They would most likely offer you one solution called the Mortgages for Newcomers that requires at least a 35% down payment to qualify. A mortgage broker can connect you with other lending solutions that do not require as much down payment to qualify for a mortgage as a newcomer to Canada.

FAQ on Newcomer Mortgages in Canada

Can a New Immigrant in Canada Buy a House?

Yes, a new immigrant in Canada can buy a house, condominium townhouse, or any other residential property. Remember that the path to homeownership is mostly the same for new immigrants as other long-time residents in Canada, except for a few incentives the Government of Canada has put together to help with the transition to be more accessible. The process can be daunting and confusing, but there are many helps available from professionals in the real estate and mortgage industry ready to guide you to make sense of the requirements and solutions that will help you achieve homeownership.

 

Exclusive to new immigrants to Canada, you can purchase a residential property without two years' employment history if you have at least a 35% down payment of the purchase price. Some additional requirements to qualify do apply, such as:

  • You immigrated to Canada in the past 60 months when you apply

  • You have a Permanent Resident (PR) status

  • You have a minimum of three months of full-time employment in Canada

  • You have to obtain a letter of recommendation from your bank in your home country before moving to Canada

 

​This is just one example of the numerous lending options available to Newcomers to Canada. Speaking with a mortgage broker will help you discover all the different lending options that apply to your situation. It is usually a complementary session with a local mortgage broker.

How Long Do You Have to Be at a Job to Get a Mortgage in Canada?

Those who are employed will need to be in a permanent position and have passed the probation period before they can utilize their employment as a source of income to qualify for a mortgage. Typically, employers will impose three months probation period and issue a letter of employment declaring the employee's status of employment as permanent full-time, permanent part-time, or still going through the probation period. In the same job letter, the employer will declare the employee's full name, job title, and start date or length of employment. All this information is necessary for mortgage lenders to decide whether they will qualify you for a mortgage based on your current employment.


​For self-employed people, the criteria for employment history are slightly different. Mortgage lenders will continue to require proof of income for self-employed borrowers and expect at least two years of working history in the same industry. Self-employed borrowers must also provide a financial statement for the gross income and expenses of the business supported by bank statements. Lastly, borrowers must show that they have filed taxes on time without incurring any tax arrears.