Welcome to Canada! Canada loves its newcomers and makes it much easier to purchase your home here in the first three years of landing.
Usually, in order to get a mortgage, Canadians must be employed in a full-time permanent position for 3-6 months (depending on the lender) before they are eligible for a Canadian mortgage. This lender rule ensures that employees have passed the standard probation with their new employer. On top of this, you’ll be asked to show your credit activity and patterns, either by providing a credit report or through alternative sources. An example of an acceptable alternative is a landlord’s letter showing twelve months of on-time payments, or utility bills that show regular payments being made for at least a year.
People who are landed immigrants or on a working visa and have been employed for a minimum of six months can get up to 95% financing of their home in Canada, as long as they have a strong international credit report or can provide alternatives to the local credit rating.
People who are landed immigrants and are not working yet can get a 65% mortgage at best rates without even showing a source of income.
You’ll need to show a status of permanent residency (PR), a substantial down payment (35% or more), and prove that you can carry the monthly payments without a local income. To qualify for the “New to Canada Program”, you must:
- Have immigrated to Canada within the past three years
- Have a current landed immigrant status
- Have a letter of reference from a recognized financial institution
- Show liquid assets equal to 12 months of mortgage principal, interest, and property taxes
- Be prepared to pay an insurance premium for more than 65% financing