New to Canada Mortgage
New Canadians are making their numbers felt in the housing market, as they get settled and make the transition from renter to owner, with New to Canada mortgage brokers helping to make that transition possible. How does the process work? First, let’s find out what we need.
New to Canada mortgage requirements and how to check them off your list:
New Canadians need a credit history. But how do you establish one if you have just started your life here? We have a few tips and tricks up our sleeve:
- Proof of employment: You can qualify for a mortgage with three months of employment history. This makes your lender aware of the fact that you have a steady source of income and hence will be able to repay the loan you are taking to repay your home with sincerity and ease. Since you have established an income source, you will seem like less of a risk to the lender.
- Proof of timely rent payments: If you are staying in a rented home, you can provide the rent payments as proof for your creditworthiness. These have to be confirmed by your landlord and bank statements. It is important to note that the landlord cannot be a family member as these statements can be forged with them and this makes you look bad with a lender. Make the rent payments on time as these can help when you are looking for a mortgage with a higher amount.
- Bank statements: If you have opened an account in a bank, you can take these bank statements which show pre-authorized payments for12 months for regular payments such as utilities, telephone, cable, insurance premiums, along with a bank reference letter. Since this proof of payments comes from an institution which is invariably a trustable source, you can use this to your advantage. It can help you get larger amounts and make you seem trustworthy.
- The credit report from origin country: A credit report from your country of origin can really help you. Most clients who have moved to Canada recently are unaware of this option. With a mortgage agent, you can be made aware of such options which can reduce your struggling and increase your chances of getting a New to Canada mortgage without any hassle. This can be obtained from your origin country and presented to the lender to establish a credit history.
- Build a credit history: Even though it is not required, it is a good idea to start establishing credit in Canada as soon as you can. A down payment of five percent is the minimum, although a larger down payment may be required. This can be done with the help of credit cards and another form of credit payments. Buy a few credit cards and start making regular payments towards them to build the credit history. This can help you to seem willing to make prompt payments and also be a wise decision to prevent issues when you try for a mortgage in the future.
- Start saving: With all the payments you are making trying to establish a credit history, you are likely to forget that you need to save for the down payment as well. Make a few reserves for the down payment so you are not caught off-guard during the mortgage process.
Why should you hire us?
From counseling on credit, obtaining credit references from foreign banks, to confirming foreign income, we advise you on the process and paperwork and present your financial history to the lender or lenders that can best meet your needs.
Call us for the right mortgage for your dreams and family!