According to Statistics Canada, a newcomer to Canada is defined as a permanent resident (landed immigrant) who has been in Canada for five years or less. Most of our newcomers have come from India, China, and the Philippines. In 2023, Canada announced a revision of our immigration goal upwards to reach 500,000 new arrivals each year by 2025. Welcome!
Your most important consideration is credit history and often newcomers must build their credit history from scratch, which can be done by using credit cards, taking a lease on a rental accommodation, and getting a car loan.
If you haven’t been able to establish a credit history, you can qualify for a mortgage with three months of employment history and by demonstrating credit worthiness as follows:
- Proof of timely rent payments
- Bank statements showing pre-authorized payments for12 months for regular bills such as utilities, telephone, cable, insurance premiums, along with a bank reference letter
- Twelve months of documented regular savings
- A credit report from your country of origin
When you have permanent residence status, you can buy with the minimum downpayment, which is 5% of the first $500,000, and 10% on any amount over $500,000. If you’re a non-permanent resident, you will need a downpayment of at least 10% of the purchase price.
If you are self-employed, it’s more difficult to prove your income so be sure to deposit all income into your bank account regularly to show your lender that you have consistent earnings. My experience is that lenders that will work with you to understand your entire financial situation, including future income potential.
After I review your situation with you, I’ll advise on the paperwork you will need to assemble, and then advocate on your behalf, presenting your full situation and financial history to the lender that has the best program for you.
I love working with New Canadians and in 2019 I received a Best Broker award from the Canadian Mortgage magazine for my role in helping so many achieve their dream of homeownership. Since this is one of my favourite specialities, I am confident I can help! Get in touch today to learn more about how you can qualify for your first home in Canada!
