New to Canada
It may come as a surprise to many new immigrants that, in fact, it is possible to get mortgages and borrow money all with very competitive interest rates.
If you have been employed for a minimum 3 month period you can qualify for up to 95% financing on your new home as long as you can provide proof of strong international credit reports OR you can provide 1 year of timely payments on 2 alternative sources such as cell phone, utilities, rent, cable etc… You can only borrow funds against a residence that will be your primary home.
With 5% down the down payment funds must be from non-borrowed sources which will require 90 days of your bank statements to show the accumulated savings/investments. The lender wants to confirm that any large deposits can be properly tracked to the source.
We would also need to see a letter of employment, your most recent pay stub and your confirmation of landed status.
If you are not employed and have applied, been granted or have secured landed immigrant status you can still borrow between 65% and 75% of the value of a home (provided of course that you can still show strong credit from the example above) As an additional condition, the banks will also want to see that you have liquid assets equal to at least 6 months of mortgage principle, interest and property taxes. If you are wanting 75% financing you must be able to show additional liquid asset equal to 25% of the purchase price of the home (once again, this is only for a primary residence).
Be sure to educate yourself. Work with someone who will teach you about your options to ensure that you are getting the proper advice. Blind trust can be a very expensive mistake. We are here to make your first experience with Canadian mortgages a very positive one!
Now that you have been armed with some great information, WELCOME TO CANADA, the place where we live in igloos, love beavers, play hockey and apologize way too much! We look forward to working with you as you start this new chapter in your life. For more information on the communities in and around Ottawa click the Best of Ottawa link.