New To Canada

Applying for a mortgage is a reasonably simple process if you’re a Canadian citizen. However, people who have just moved here but aren’t yet citizens of Canada can still apply for a mortgage. Simply said, the procedure is more involved, and more thorough documentation is required.

What kind of mortgage you will ultimately be eligible for as a newbie to Canada depends on a few different variables. These elements are:

• Whether or not you have a permanent residential address
• Your down payment amount
• Your credit rating

In terms of a mortgage application, there are basically potential situations a novice could find themselves in. Let’s look at them now.

• You have a strong credit score, a down payment of at least 5%, and you are a permanent resident. This is the best-case situation because you are eligible for a conventional mortgage with these characteristics, just like any other Canadian citizen.
• You have a down payment of at least 5% and are a permanent resident, but your credit is not strong. You can still be eligible for the New to Canada Program provided by the three mortgage default insurance carriers, despite the fact that it is not ideal.
• You lack a down payment of at least 10% and are not a permanent resident. Only in this situation will you be ineligible for a mortgage.

What can qualify you for the New Canadian program?

To be eligible for the New to Canada Program, you must prove that your credit is good. There are several methods available to accomplish this:

• Utilizing a credit card frequently and finishing the balance in full
• Paying all loans off in a timely manner
• Paying all of your bills on schedule, including your phone and utility bills