New To Canada | Tony Piattelli | Calgary Mortgage Broker

NEW TO CANADA

There may be many challenges to buying a home when you’re moving to Canada. That’s why I’m here to help you settle into your new home.

A newcomer is someone who has immigrated to Canada within the last 5 years and is already a Permanent Resident or who has received confirmation of Permanent Residence from Immigration, Refugees and Citizenship Canada (IRCC).

Buying a home can be a challenging process, especially if you are new to the country. There are two things you need to know about the mortgage process before you start looking for a home.​

WHO IS CONSIDERED NEW TO CANADA?

DOWN PAYMENT & EMPLOYMENT HISTORY

Your down payment is a portion of the home’s purchase price that you pay upfront at the time of purchase. The more money you put down, the less you need to borrow.

Your employment history and immigration status could determine how much down payment you will need in order to buy your first home in Canada.

The majority of mortgage lenders will want two years of employment history to put less than 20% down. 

 

However, if you have a down payment of at least 35% of the purchase price, you can still qualify for a mortgage without the two years of employment history that is typically required. You need to meet the following requirements:

 

  • You must have immigrated to Canada within 5 years,

  • You must have permanent residence status,

  • You must have a minimum of three months’ full employment in Canada,

  • You may be required to obtain a letter of reference from your bank in your home country.

CREDIT HISTORY

When you move to Canada, it’s important to establish your credit as soon as possible. Signing up for a credit card, with most banks offering newcomer credit cards, is a great place to start. This credit card starts your Credit Report. As you use your credit card, including making regular payments, you begin to build a credit score. This score measures how well you have managed your credit. The higher your score, the more likely you’ll be approved for a mortgage.

 

Two to three months is typically a good place to start when establishing your credit score. Try to not exceed the credit limit and preferably pay off the balance in full every time you receive your statement. 

 

Other documents may be used to assess your credit, such as utility bills and payments over 12 months.

NEED HELP BUYING YOUR FIRST HOME IN CANADA?

If you need some advice, message me today!

 

I am here to help guide you through finding your new Canadian home in Calgary, Red Deer, Okotoks, Lethbridge or Cochrane.

Very professional and makes everything clear and easy to understand. Beyond friendly and always available.

Johanne P.