New To Canada
So you’ve moved to this great country, Canada and now you want to be a homeowner – that’s exciting! The first thing you’ll be thinking is where do I start and what do I need to know? Good questions! There are some rules you have to follow and some tips that we’ve sourced from some of the best web sites out there. Here’s what you need to know or do:
- Open up a bank account and use it often, save your monthly statements – you may need to provide this information to your mortgage broker or bank depending on what you qualify for.
- Establish credit in Canada – apply for a credit card (and use it) or a small personal loan that can be paid back in 6-12 months. Make sure you make your monthly payments – you can’t miss even 1! Don’t max out those cards – use them, but make sure to pay them off each month. You will need 3 months of employment with the same employer. (if you have been transferred as part of a corporate relocation, you may be exempt)
- Pay all of your bills on time (Rent, utilities, cel phone bills, cable, telephone, etc) – keep your receipts and statements.
- If you are putting less then 10% down on your mortgage then you will need to obtain your international credit report through either Equifax or Transunion, but be aware that your credit score must be strong OR if that’s not possible, then you can provide 2 sources of credit showing that you paid your bills in a timely fashion with no missed payments for 12 consecutive months (These 2 sources can be 1). 12 months of rent – need a letter from your landlord and bank statements and 2). 1 other alternate source (utility bills, cel phone bills, cable, etc) – you will need either a
confirmation letter from the company or 12 months of statements (Note: these alternate sources have to be Canadian).
- If you are qualifying for a 10% down mortgage then you need to provide a letter of reference from any recognized financial institution or 6 months of bank statements from your main account.
- You need a valid work permit or verification of landed immigrant status.
- Guarantors are not allowed.
- You must have immigrated or relocated to Canada within the last 5 years
Keep in mind that when your buying a home, in addition to having to pay your mortgage costs, there are other expenses as well. There are 1-time expenses called closing costs. These closing costs can include pre-paid property taxes, inspection fees, moving fees, mortgage fees and lawyers fees. There will also be ongoing costs including home insurance, utilities, property taxes, home maintenance, etc. All important to budget for.
There may be some other rules that apply and we can send you to talk with some great Mortgage specialists to help you sort it all out! They can talk to you even if you are 6-12 months away from purchasing – they will go over all you need to know to help you formulate a plan and make owning your Canadian home a reality.
Genworth Canada New to Canada Program
Mortgages for New Canadians with less than 20% down payment video
What Newcomers Need To Know, Buying your First Home In Canada – Canada Mortgage and Housing Group Newcomer’s
Regina Multicultural Council