The New to Canada program allows you to purchase a house in the first 5 years after you immigrate to Canada!
The New To Canada(TM) Mortgage Insurance Program makes it possible for individuals relocating to Canada to purchase a home with as little as 5% down. This program helps new Canadians purchase their first home, build equity, and become economically established in Canada. Josh Tagg, with Mortgages For Less has lots of experience getting financing for overseas buyers.
This program is designed primarily for those borrowers who have little or no credit established in Canada and those who still have a temporary Social Insurance Number.
Minimum & Maximum wait time:
As a minimum, you must have three months of full time employment in Canada (although this requirement is waived if you were transferred as part of a corporate relocation program.) As long as you have a valid work permit, or landed immigrant status, you may apply. If your down payment is only 5% down and you are not from the United States, you may need to wait a year to meet the alternative credit requirement outlined below. You can only qualify under this program during the first 5 years after your arrival.
Your 5% down payment must come from your own resources. This means that we must prove that the money is yours and has not been given to you as a gift or a loan. We will look for bank statements or investment statements showing the money has been in your name for at least 3 months. Down payment in excess of the 5% can be a gift from a family member or a subsidy from a corporate relocation program.
At 5% down payment, we will look for one of the two following sources to determine your credit worthiness:
- International Credit Report – only available from USA or UK
- Landlord reference letter confirming 12 months of on-time payments, confirmed by 12 months bank statements, AND 12 months statements from a telephone, cable or utility bill showing 12 months of on-time payments.
At 10% down payment, all we will require is 6 months bank statements from a recognized financial institution. In many cases, this can be from your country of origin.