Essential Mortgage Tips for Newcomers to Canada

Essential Mortgage Tips for Newcomers to Canada

You recently immigrated to Canada, and now the task of settling into a new country begins. Getting settled, learning about the area, and buying a home can be a daunting task for many new residents.

As a new resident of Canada, you know you want a new home, but you are not sure where to start your search or how to qualify for a loan with mortgage lenders in Vancouver. 

By learning a few of the essentials and working with a trusted Vancouver mortgage broker, you can successfully finance your new home. Canada does not forbid foreign ownership of real estate; therefore, you are free to purchase property regardless if you are a temporary or permanent resident of Canada.

5 Facts to Know When Applying with Mortgage Lenders in Vancouver
Canada does things differently when it comes to a new mortgage. Therefore, as a new immigrant, you need to know the following:

Credit History: As a new entrant, you have not had the time to establish credit history in the country. Most lenders allow you to build credit history by providing references from financial institutions in your former country, and records showing at least one year of on-time rental payments. Furthermore, you must prove you have sufficient funds for a down payment. Due to your increased credit risk, the lender may require as much as 35 per cent for a down payment – especially for any buyer that has lived in Canada for five years or less. Note that as a new immigrant, as long as you are employed for 3 months and have strong international credit, you might qualify for up to 95 per cent financing.

Employment History: In addition to credit history, it is unlikely that you have had adequate time to establish your work history. Some lenders require that you work at least three months with your Canadian employer. If you work for the same company and you recently transferred to Canada for that job, you can use that reference to establish your stability.

Down Payment Terms: In addition to the 35 per cent, you may need a down payment in Canada for 30 to 90 days, but this depends on the lender. A Vancouver mortgage broker can help identify which banks suit your buying needs, budget, and down payment capacity.

Property Taxes: When buying in Metro Vancouver, you pay the provincial Property Transfer Tax, and also the foreign-buyer Property Transfer Tax of approximately 15 per cent of your new home purchase price. If, however, you have a Canadian work permit and you are a foreign national living in Metro Vancouver, you are exempt from the additional tax.

Choose the Right Broker
: The broker you work with makes a difference in your new home purchase. As an immigrant, you are subject to different terms and qualifications. Therefore, you want a broker that has helped immigrants and new residents in the past obtain loans from mortgage lenders.

Gain Valuable Insight by Working with a Local Vancouver Mortgage Broker

Qualifying for a new mortgage in Canada does not have to be daunting. When you work with Rala Investments Ltd., we simplify the process. We educate you on the differences of Canadian financing, and help you fund the home of your dreams.

Get started by booking a consultation with one of our brokers today. You can call us toll-free at 866-732-5865 or request your consultation online.