New to Canada
New Canadians get helping hand buying homes in Canada
Both CMHC and Genworth offer insured mortgages for applicants new to Canada.
Permanent Resident
For those that have obtained permanent residency status, mortgages can be approved under the New to Canada Program. Applicants under this program must have relocated to Canada within the last 6 years. The main requirements are at least 3 months at a permanent full-time job, no derogatory credit (meaning collections, judgments or garnishees), and landed immigrant status. As for the down payment, a home can be purchased with 5% down as long as the home country is able to provide an international credit bureau. The 5% down payment must come from the applicants own resources, meaning gifted or borrowed down payments will not be accepted. 10% down is required if a letter of reference or 6 months bank account statements can be provided from a recognized financial institution in place of the international credit bureau. With a down payment of 15%, only the work visa or verification of landed immigrant status is required if a guarantor can be provided.
Non-Permanent Residents
For non-permanent residents of Canada, or temporary residents, mortgages are available through both insured and uninsured channels. The borrower must have a valid work visa or a letter from a current employer confirming they are legally eligible to work in Canada. In this case, the application for mortgage must be submitted within 24 months of arrival and a minimum of 3 months full time employment is required. The minimum down payment required is 5% and a source of reference is also needed. The reference source can either come from the current employer, a recognized financial institution in Canada, or via an International credit report. The minimum down payment requirement for uninsured mortgages for non-permanent residents is 35%. And of course, a satisfactory credit history is also needed.
Outside Guidelines? No Problem!
In the event where a person new to the country does not fit in the guidelines of the above 2 programs (ie. There is no credit bureau system in the home country and the applicant cannot provide the full 10% down payment), options outside of these 2 systems do exist. In this case, the applicant will be asked to provide an alternative means of proving their credit-worthiness. Each application will be reviewed on a case-by-case basis.