Many newcomers come to Canada with the hope of owning their own home. However, processes for becoming a homeowner can vary by country to country. It can be hard navigate through the entire home-buying process while attempting to meet and understand all of the criteria requirements to qualify for newcomer mortgages.
The steps involved in your application may vary depending on your status in Canada, your credit rating, and the amount you can afford to pay down on your potential home, but you can buy a new home with a minimum down payment of just 5%.
New to Canada – Newcomer Mortgages in Milton
If you are new to Canada on a work permit, or here as a landed immigrant, you now have the ability to purchase a home up valued up to a million dollars.
If you’re purchasing a home that is less than $500,000, a standard 5% down payment is required. However, if the property you are hoping to buy is greater than $500,000, but less than $1,000,000, than you will be required to pay the 5% down payment on the first $500,000, then an extra 10% down payment on any amount over and above, up to $1,000,000. This is referred to as your Loan-to-Value (LTV) limit.
Loan Security, Property Eligibility, Terms & Rates
This option is available to immigrants who have landed in Canada as a visitor on a work visa, or as a permanent resident.
Here are some properties types that also meet the eligibility requirements:
- A home with a rental unit – As the borrower you must reside in one of the two units
- Lender-approved new constructions that fall under the New Home Warranty Program
- Any existing property listed for resale
- Residential homes that are ready for the re-sale market in certain areas of high demand
- Properties that will do well in the economy for at least 25 years
Under this program you can choose between a fixed rate, variable rate, capped variable rate or adjustable rate. You interest rate term should not exceed 25 years and your LTV limit should also be greater than 80%. However, if you choose a fixed term rate of 5 years or more, a contract rate will be used. If your rate is less than 5 years then your qualifying interest rate will be whichever is greater, the contract rate or the 5-year standard rate.
How to Qualify for a Newcomer Mortgage in Canada
As a new borrower you may be asked to verify and provide documented proof surrounding your employment and income, credit, banking information, length of time in Canada, status in Canada, non-Canadian debts and your down payment. This may vary and is determined on a case-by-case basis.
Under this program we do not allow application to make use of a Guarantor. Also, if you are a Foreign Diplomat, you will also not be eligible.
For more information about this program or to apply today, contact Halton Team Mortgages and get the professional advice you deserve as a Canadian newcomer!
When your finances matter, we’ll be there for you!