NEW TO CANADA
Purchasing your new home is an important step when settling into your new life in Canada. We are here to guide you through the process, handling all of the details so that you can focus on finding your new home!
If you have emigrated to Canada within the last five years and are a Permanent Resident, or if you have a work permit and have applied for your permanent residency, you may be able to purchase your home with as little as 5% down.
The first thing we’ll need to do is determine the type of mortgage you will need and the amount of down payment you will require for that mortgage. Depending on your PR status and your credit, the minimum down payment will be between 5- 10% through an insured program. 5% of your down payment must be from your own resources, meaning not borrowed or gifted. If you are selling your home in another country and using some of the proceeds as a down payment on a home in Canada, you must be able to prove this.
The minimum down payment for an owner-occupied purchase will be 5% on the portion $500K and under, and 10% for the portion of purchase price above $500K. For any purchase with less than 20% down, an insurance premium is added to the mortgage and spread over the length of the mortgage, or amortization (commonly 25 years). For any property valued at $1M or higher and for any rental property, the minimum down payment is 20% and there is no insurance premium added to the mortgage.
Canadian mortgage lenders and insurers want to see employment letters that prove your offer of employment and salary in Canada, and in most cases that you have worked here for a minimum of three months. Lenders and insurers also want to see that you have a solid credit history. If you have not yet established Canadian credit, we can often use an international credit bureau and alternative sources of credit history. We will let you know what documentation will be required once we have decided on a particular lender and mortgage product. We will also help you understand how to start building your credit in Canada.
Once we know the type of mortgage and your down payment amount, we will then work with you to determine how much you can qualify for, so that you are confident you’re looking at the right homes, and that you are comfortable with what the monthly cost of your new home will be. We will help you determine this amount by discussing your hopes and future vision, as well as your current situation and lifestyle.
We will lock in an interest rate for 120 days for you while you start actively looking for your home. This guarantees a maximum rate should interest rates increase while you are still looking.
Once you have found your new home, we will research the best mortgage options and rates for you again at that time, and walk you through the pros and cons of each lender offering to help you make the decision that feels most right for you.
Our team will help you from first call through to following up with your lawyer at closing to ensure your home buying experience is a smooth and a happy one!
Please call 604-996-7701 or email me personally for help on how to start down the path of home ownership in Canada!