Welcome to Canada!
If you’re new to Canada and looking to get a mortgage, here are some tips to help you navigate the process:
Establish credit: One of the first things you should do when you arrive in Canada is to establish a good credit history. This can be done by applying for a chequing account, a credit card and using it responsibly, paying bills on time, and avoiding excessive debt.
Save for a down payment: In Canada, most lenders require a down payment of at least 5% of the purchase price of the property. You’ll need to save enough money in your savings account to cover this cost, which can take several months or years.
Find a lender: Look for a lender that specializes in mortgages for new Canadians. You may also want to consider working with a mortgage broker, who can help you find the best mortgage options based on your needs and credit history.
Gather documents: You’ll need to provide documentation to your lender, including showing proof of entry into Canada, proof of identity, proof of income, and proof of residency. Make sure you have all the necessary supporting documents in order before you apply for a mortgage.
Get pre-approved: Before you start shopping for a home, it’s a good idea to get pre-approved for a mortgage. This will give you a better idea of how much you can afford to spend on a home and help you narrow down your search.
It’s important to do your research and to carefully consider your financial situation and long-term goals before taking out a mortgage for your new life in Canada. You may also want to seek the advice of a mortgage broker to help you make the best decisions for your situation. Mortgage brokers and mortgage agents can give you more options than the traditional big banks and financial institutions can. We have access to multiple lenders to help find a mortgage the best suits you and your needs.
Just because you are a new immigrant does not mean that you have to wait to purchase a home. If you have been in Canada for less than three years, have landed immigrant status, and have been employed in Canada for a minimum of three months, you can qualify for a mortgage. There are a number of mortgage programs available to new immigrants.
Contact your bank, credit union or mortgage broker for more information. In order to qualify for a mortgage, you must meet the requirements of your lender. You will need to provide proof of income, show that you have enough money saved up for down payment and closing costs, and pass credit checks. It’s important to be aware of the different types of mortgages available and how they work.
The most common mortgage is a 5-year closed mortgage, which allows you to pay off your home loan over five years without having to make any additional payments on top of your principal and interest. A closed mortgage means that there are no other loan options available (such as an open or variable rate).
The only difference is that you will have to provide a letter from your bank stating that you are employed in Canada. In addition, if you are self-employed, your income must be proven with the help of documents such as tax returns or auditor’s reports.
If you’re new to Canada and looking to invest in a rental income property, here are some tips to help you navigate the process:
- Research the market: Before investing in a rental property, research the local real estate market to determine which areas have strong rental demand and potential for appreciation. You may also want to consider factors such as transportation, schools, and local amenities.
- Create a budget: Determine how much you can afford to invest in a rental property and create a budget that takes into account all of the costs associated with owning a rental property, including mortgage payments, property taxes, insurance, maintenance and repairs, and property management.
- Find a lender: Look for a lender that specializes in financing rental properties. You may also want to consider working with a mortgage broker, who can help you find the best mortgage options based on your financial situation and investment goals.
- Hire a real estate agent: Hire a real estate agent who specializes in investment properties to help you find the right rental property. Your agent can also help you negotiate the best terms and price on your purchase.
- Consider property management: If you plan to rent out the property, consider hiring a property management company to handle the day-to-day operations of your rental. This can include advertising the property, screening tenants, collecting rent, and handling maintenance and repairs.
Investing in a rental property can be a good way to build wealth and generate passive income, but it’s important to do your research, understand the risks, and seek the advice of a financial advisor before making this type of investment.
If you’re new to Canada, please give us a call today!