Newcomers to Canada play an increasing role in Canada’s growth, creating new market opportunities. CMHC and Genworth insured financing is available to New to Canada with permanent and non-permanent residence status (work permit - valid for a minimum of 6 months), helping newcomers to realize their dream of homeownership in Canada.
For permanent residents, where there is limited Canadian credit history and where foreign credit bureaus are not available, CMHC and Genworth continues to consider alternative sources of payment history for Loan-to-Value ratios up to 95%. Examples for alternative sources are Letter from Landlord, Utility Bills, Car Insurance Payment Records etc.
Newcomers with non-permanent resident status (work permits) have access to CMHC and Genworth insured financing of up to 90% loan-to-value ratio for the purchase of a 1 unit owner-occupied residential property. A minimum of 5% down payment has to come from own sources. The other 5% can be gifted.
No additional fees or premiums as a result of residency status - standard product specific premiums apply. No minimum period of residency required.
Some Important Tips:
Build Your Credit
The first step to getting a mortgage in Canada is to build your credit rating. A strong credit rating will help you get a better mortgage rate, which could save you thousands of dollars in interest charges over the life of your mortgage. Here is a list of activities that will help you build your credit:
Apply for, use and pay off a credit card each month
Pay your bills in full and on time, including rent, utilities and telecommunication services
Apply for small loans from your bank and make regular payments
Prove that you have a consistent source of income, by staying with the same employer for an extended period of time
Alternative Credit Supporting Documentation
If you’re new to Canada and have a weak Canadian credit history, you’ll need to provide some specific supporting documents to show you have built up credit other ways. Some of the documents you may need to provide include:
A valid work permit or landed immigrant status
Proof of income through either an employment contract or pay stubs
Proof of 12 months of rental payments and/or a confirmation letter from a landlord
Regular payments towards utilities, telecommunications, insurance, etc. and/or confirmation letter from service provider(s)
Letter of reference from a recognized financial institution
Several months (ideally twelve months) of bank statements
Documented regular savings for 12 months
An international credit report