As someone with deep personal ties to the immigrant experience—my parents spoke multiple languages and used their own secret language to discuss family matters—I have a heartfelt connection to helping newcomers to Canada. Just as my parents sought a better life in Canada, many of our clients come here with dreams of a brighter future for themselves and their families.
Whether you're a recent immigrant, landed immigrant, or refugee, buying a home in Canada is a significant milestone. We understand that navigating the mortgage process can be overwhelming, especially when you're new to the country. That's why we're here to help. Here is a list of key considerations when applying for a mortgage in Canada as a new immigrant.
Understanding your mortgage options
As a new Canadian, understanding your options and choosing the right mortgage is crucial to achieving your homeownership goals. Here's a breakdown of the main options:
Fixed vs. Variable Rates
With a fixed-rate mortgage, your interest rate remains the same for the entire term. A variable-rate mortgage, on the other hand, fluctuates based on market conditions.
Amortization Periods
The amortization period is the length of time it takes to fully repay your mortgage. Common options in Canada include 25, 30, and 35 years.
Open vs. Closed Mortgages
An open mortgage allows you to make prepayments or pay off the entire loan at any time, while a closed mortgage has restrictions on these actions.
Mortgage requirements for new Canadians
To qualify for a mortgage in Canada, you'll need to meet certain requirements:
Documentation
You'll typically need to provide proof of income, identity, residency, and employment.
Credit Score
A good credit score is essential for obtaining favorable mortgage terms. If your credit history is limited, consider building it up by using credit responsibly.
Downpayment
The minimum down payment required for a mortgage in Canada varies based on the purchase price. Government programs like the First-Time Home Buyer Incentive can help you with the down payment.
Contact us today to discuss mortgage options for new Canadians.
Frequently asked questions about mortgages for new Canadians
Welcome to our FAQ section where we address common questions and concerns that new Canadians often have about mortgages. Whether you're a recent immigrant, landed immigrant, or refugee, this section is designed to provide you with valuable information and guidance.
While there's no strict minimum, a higher credit score generally leads to better interest rates and terms.
It may be more challenging, but some lenders offer programs for individuals with limited credit history.
The approval process can vary, but it generally takes a few weeks.
Yes, you can often qualify for a mortgage while on a work permit.
Typical documents include proof of income, identity, residency, and employment.
In some cases, a Canadian guarantor might be necessary, especially if you have limited credit history or income.
Yes, you can often qualify for a mortgage using foreign income, but you may need to provide additional documentation to provide proof of income.
At Olympic Mortage, we want the best for the people around us. We care for our clients, whomever they are, wherever they’re from. Everyone gets the best of us, because that’s what we want to be putting out to the world. So go ahead, try us.
CONTACT DETAILS
Suite 301, 1321 Blanshard Street Victoria, BC V8W 0B6
