Newcomers to Canada
New to Canada? Your Path to Homeownership Starts Here. No Ifs, And's or Eh's about it.
If you’ve recently immigrated or relocated to Canada, we can help you purchase a home with as little as 5% down. Whether you’re settling in the heart of Canada West or beyond, we provide tailored mortgage solutions to make your dream home a reality. Let’s make your new beginning feel like home.
How the Mortgage Process Works for Newcomers:
Eligibility Check:
Your broker will assess your eligibility based on your employment history, credit, and financial situation.
Pre-Approval:
Get pre-approved to determine your best rate, mortgage product, and ensure you know what you can afford.
Choose Your Mortgage:
Your broker will help you choose between different mortgage options, such as fixed vs. variable rates.
Apply for Full Approval:
Once you’ve found your home, your broker will submit your mortgage application to the lender for full approval.
Close the Deal:
Once your mortgage is approved, you’ll close the deal, pay the down payment, and finalize everything with your lawyer.
Newcomer Mortgage: Everything You Need to Know
Eligible Loan Purposes:
You can purchase a home in Canada, including both primary residences and new builds, through our specialized Newcomer Mortgage program. Here’s what you need to know:
Purchase Transactions:
1 & 2 Units: You can qualify for a mortgage with up to 95% LTV (Loan-to-Value) if the home value is under $1.5M
- Property ≤ $500,000: Requires a 5% down payment.
- Property > $500,000 & < $1.5M: Requires 5% down on the first $500,000 and 10% on the portion above $500,000.
3 & 4 Units: Up to 90% LTV.
Eligible Property Types:
- Maximum 4 units, 1 must be owner-occupied.
- New constructions with a Lender-approved New Home Warranty Program.
- Existing resale homes, in high-demand markets, and properties with at least 25 years of remaining economic life.
- For 3- and 4-unit properties, the property must meet local zoning requirements and have fully self-contained units.
Maximum Property Values:
- For LTV > 80%, property value must be under $1.5M.
- For LTV ≤ 80%, property value must be under $1M.
Qualification & Documentation:
Income & Employment:
- Standard income and employment verification requirements apply.
Credit History:
- If you don’t have a Canadian credit report, the lender and insurer will assess your creditworthiness through alternative means:
- International Credit Reports.
- 12 months of bank statements or 12 months of billing statements (e.g., rental payments, utilities, etc.).
- Letter of reference from a recognized financial institution.
Down Payment Sources:
- You must have immigrated or relocated to Canada within the last 5 years.
- Must have a valid work permit or be a permanent resident.
- All foreign debts must be included in your Debt Service Ratios (exceptions for rental income from outside Canada).
- No Guarantors or non-residing co-borrowers allowed.
- Down payment grants from approved Affordable Housing Programs are also accepted at up to 95% LTV.
Mortgage Terms & Rates:
Available Mortgage Options:
- Fixed, Variable, Capped Variable, and Adjustable Rates.
- Max Amortization: Up to 30 years (subject to conditions).
- Qualifying Interest Rate “Stress Test” : The greater of Contract Rate + 2% or 5.25%.
Mortgage Insurance Premiums:
- Premiums range based on LTV (Loan-to-Value ratio).
- Example: LTV up to 65%: 0.60% premium, LTV 90.01% – 95%: 4.00% premium.
- Higher premiums apply for amortizations over 25 years.
GDS / TDS Guidelines:
- Gross Debt Service (GDS): 39%
- Total Debt Service (TDS): 44%
Get Newcomers to Canada in Seconds with My Mortgage Toolbox
It’s a smart choice. Apply online now—it’s quick, simple, and hassle-free!
Need More Information?
Our team at Brokers for Life specializes in helping newcomers navigate the mortgage process, from eligibility checks to securing your dream home. Contact us today to see how we can help!
