If you’ve recently immigrated to Canada and are looking to turn your dream of purchasing a property a reality, simply continue reading to discover how to successfully obtain a mortgage.
Mortgage Tips for new immigrants.
1. If you’ve immigrated to Canada within the past 5 years, you may be able to purchase a home, with a low 5% down payment under the New to Canada Program
If you’re serious about purchasing a home and establishing roots in Canada, it’s advisable to purchase a home, within 5 years of entering the country as during this period if you are a qualified home buyer you’ll be able to purchase a home with a small down payment of around 5%.
Just keep in mind that the home which you purchase must be under $1,000,000. If the home which you purchase is priced up to $500,000 you’ll require a 5% down payment. However, if the home which you intend to purchase is priced over $500,000, you’ll have to front up with a 5% down payment for the first $500,00 of your mortgage and front up with an additional 10% down payment for the amount of your mortgage which is over $500,000. Contact our mortgage brokers in Meaford to answer all your mortgage related questions.
2. If you finance a mortgage using the New to Canada Program, you’ll be able to select a fixed rate mortgage, a variable mortgage or an adjustable mortgage
If you’re interested in signing a mortgage under the New to Canada Program, you’ll be able to choose a mortgage plan which you’re comfortable paying off. Depending on your personal preferences you may choose a fixed rate mortgage, if you feel that interest rates may rise in the coming years or you can choose to sign a variable mortgage if you believe that interest rates are likely to drop in the years which it will take you to pay off your mortgage.
As an alternative, you can also opt for an adjustable mortgage which will allow you to lock in an interest rate at a later date.
3. Work on building a positive credit rating
In order to successfully obtain a mortgage in order to purchase your first home in Canada, it’s highly advisable to work on building a positive credit rating. Some ways to establish a positive credit rating is to apply for a credit card, to show that you can reliably make credit payments every month. Another way to increase your credit card rating is to ensure that you pay off your bills such as rent and utilities on time every month.
4. Prove that you have a steady source of income and will be able reliably make your mortgage repayments
Lastly, if you stay employed by the same employee over a lengthy period of time you’ll also be able to prove to a mortgage broker that you have a reliable source of income
New Immigrant Mortgages Options.
So if you are set on obtaining a mortgage in order to purchase your first home in Canada, it’s well worth talking to our friendly team to see how we can help you sign a mortgage!
Contact our mortgage experts today