Mortgage for New Arrivals

Many new arrivals to Canada prefer to rent for the first year or so to be sure that they have selected the right neighbourhood for their family. But there are some, who just know right from the start that they have made the right choice and want to purchase their own home immediately.  This can be a problem as the mortgage lenders are looking for evidence that the buyer is  in a financially sound position with a decent credit rating. This information is not readily available for new immigrants. However, there are products out there which do allow people new to Canada to purchase with as little as 5-10% down. Details of one such product, as provided by Mandy Szucs of Real Mortgage Associates, are given below:
Acceptable loan purpose Purchase transactions only
Eligible properties Maximum two units where at least one unit must be occupied as the principal residence
New construction or existing properties
Terms Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
Amortization options LTV > 80%: Up to 30 years
LTV ≤ 80%: Up to 40 years
Borrower qualification
·        Must have immigrated or relocated to Canada within the last 36 months
·        3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
·        Must have a valid work permit or obtained landed immigrant status
·        For 95% LTV, down payment must be from own resources. For LTV’s less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy.
·        Guarantors are not permitted.
Documentation Requirements
LTV Documentation requirements*
All LTV’s
  • Valid work permit or verification of landed immigrant status
  • Income Confirmation
  • Down payment confirmation
  • Purchase and Sale agreement
Up to 90%
  • Letter of reference from a recognized financial institution
    OR
    Six (6) months of bank statements from primary account
90.01 – 95%
  • International credit report demonstrating a strong credit profile
    OR
    Two (2) alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternative sources required are:

    • Rental payment history confirmed via letter from landlord and bank statements **
    • One other alternative source (hydro/utilities, telephone, cable) to be confirmed via letter from the service provider or 12 months billing statements
For further information, contact Mandy Szucs at MandySzucs@RMABroker.ca
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