Apply for a New to Canada Mortgage
Published on 29 August 2022, 07:22:56 AM
Good news if you’ve just arrived – you can get a mortgage in Canada as a foreigner.
New to Canada mortgages give you the chance to buy a home in your new country.
They’re the perfect solution to affording a home of your own. Why rent when you can take advantage of new immigrant mortgage programs (Canada) to invest in your future?
If you have permanent resident (PR) status or are a non-resident foreigner and have 5% to 10% for a down payment, you may qualify for Canada Mortgage and Housing Corporation’s (CMHC) new to Canada mortgage.
Canada Guaranty and Sagen™ also offer a new to Canada mortgage. Check out the Canada Guaranty Maple Leaf Advantage™ mortgage.
Quick Reads
Who is eligible for a mortgage in Canada?
How long do you have to work to get a mortgage Canada?
What are the new mortgage rules in Canada?
Your Eligibility for a Mortgage
How reliable you are at paying debts is used by your lender to decide if you can get a new to Canada mortgage.
You need a credit score of 600 or more for new immigrant mortgage programs in Canada. Your credit score is produced by Equifax, which tracks how long you take every month to pay credit cards and other debts. Your score goes up if you pay bills on time, all the time.
Your lender may also use:
- receipts from rental or room and board payments
- utility or cable bill histories
- insurance or child care payments
- or records of regular savings, such as from a bank
- international credit reports
- a letter of reference from your bank in your home country
as proof you can manage debt.
Qualify for a CMHC newcomer mortgage.
Your Work History
How long you have to work to get a mortgage in Canada depends on how you make a living. Banks and CMHC ask for three or more pay stubs, and a letter from your boss saying you passed your job probation. You may have to wait longer if you are self-employed. Ask your bank for advice. Apply for a New to Canada mortgage at Sagen™.
Mortgage Rules in Canada
Canada’s new mortgage rules include:
Stress Test
Your lender may do a stress test to see how much mortgage you could afford if interest rates went up. Try a private lender or credit union if you are worried about the stress test. Use the stress test calculator.
Shorter Amortizations
You have up to 25 years to pay off your mortgage. You could get 30 or 35 years to pay if you have a larger down payment (20% or more of a home’s sales price).
Mortgage Default Insurance
Insured mortgages, for those with the lowest down payments, are available for homes worth $1 million or less. Mortgage default insurance pays your bank or other lender if you can’t or won’t make your mortgage payments. CMHC, Canada Guaranty, and Sagen™ are Canada’s insured mortgage lenders.
Insured mortgages let you make a downpayment of 5% on the first $500,000 of a home’s price, and 10% of the balance, up to $1 million. Insured mortgages are offered to home buyers with less than 20% for a downpayment.
You can also use private mortgage lenders to get a regular, uninsured mortgage. What to know about private loan lenders in Ontario.
Debts You Already Have
Your other debts for a CMHC mortgage can only total 39% of your gross debt service (GDS) or 44% of your total debt service (TDS). See what your GDS and TDS includes and calculate your debt.
The new mortgage rules make it easier to get a mortgage if you have other bills to pay.
Why You Need a Real Estate Lawyer
Your real estate lawyer makes your new to Canada mortgage legal. We prepare the legal paperwork needed to ensure a property you buy belongs to you. Your Axess Law lawyer can go over the offer to purchase with you. We explain terms and conditions to ensure you understand your new to Canada mortgage.
We suggest what to put in your offer so you can cancel if needed, and tell you if the seller can keep your deposit or not. Our real estate lawyers answer all your questions. Even if you have already made an offer, your Axess Law lawyer may be able to change it. We can talk to the seller’s lawyer for you, and witness while you sign legal documents.
We transfer title to a property you buy into your name. Axess Law can add a spouse to title if you are joint tenants, meaning you share ownership of a home or property. Your lawyer looks for claims by construction companies or others to ensure you own the title outright.
Use an Axess Law lawyer near you to discharge mortgages (Ontario only) if you sell a home bought with a new to Canada mortgage. Axess Law discharges existing mortgages, and registers new mortgages against title by contactingy your bank, credit union, trust company, or private lender. Mortgage discharge fee Ontario for home sellers.
Your lawyer’s role in discharging a mortgage in Ontario.
Affordable Real Estate Lawyers, Anywhere You Are
Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Hiring a real estate lawyer near me.
Phone or Go Online to Book a Lawyer
Use our online web form to make your own appointments, or dial toll-free to 1-877-402-4277 (647-479-0118 in Greater Toronto Area). Our lawyers can meet with you day or evening, anywhere in Ontario, by online video call. We make appointments 7 days a week, and can meet with you in person at any of our Greater Toronto Area or Ottawa law offices.
Axess Law has onsite parking, and easy transit access.
