New to Canada?

Are you new to Canada? If so, welcome! We are a proud country and we know you will love it just as much as we do.

Now that you’re here and have gone through the immigration process, you’re probably thinking about where you’re going to live and buying a home. This is a special case in the mortgage and home buying process, but don’t be afraid! As long as you prepare in advance and set yourself up with a mortgage professional there shouldn’t be any major problems.

To help you prepare for buying a home, we’ve prepared the following list of requirements you need to be aware of.

Mortgage Qualifications and Rules for New Residents

• You have immigrated or relocated to Canada in the last 60 months (5 years)
• You have worked in Canada for at least 3 months in a full-time position
• You have a valid work permit or have landed immigrant status
• You must have at least a 5% down payment come from your own resources
• Your debts outside Canada, including mortgages, will be included in your affordability ratios
• You are not permitted to use a guarantor
• You pay Canadian taxes

Documentation required for all New Resident Applications

• A valid work permit or have landed immigrant status
• A verification of income
• A down payment verification
• A purchase and sale agreement

• If you have 10% or more as a down payment:
  • A letter of reference from a recognized financial institution OR 6 months of bank statements from a primary bank account

• If you have less than 10% as a down payment:
  • An international credit report with a strong history
  • 2 alternative sources of credit demonstrating you make timely payments such as:
    • A record of a 12 month rental and letter from your landlord regarding payments
    • Records of 12 months from insurance, utilities, or phone

Mortgage Insurance and Other Costs

• In Canada, people who have less than 20% as a down payment and use mortgage financing will be set up with mortgage insurance by their lender which you will be liable to pay
• Legal fees will be up to $2000
• Title insurance will be around $249 plus taxes
• Appraisal fess will be around $350
• Property taxes to be paid to the current owner will be calculated by your lawyer

This entire process doesn’t need to be difficult if you prepare well in advance. Documentation from your home country can take weeks to arrive and is not permitted to be faxed or emailed. If you have arrived before your spouse, you will also need to get a legally prepared spousal consent document which can take weeks to process as well.

If you need any assistance with anything on this list there are many guides on the Canada Mortgage and Housing Corporation (CMHC) website that has guides in a variety of languages. You can also set yourself up with a mortgage professional who will be happy to help guide you through the process. Either way, welcome to Canada!