Newcomers to Canada

Your New Chapter: A Mortgage in Canada

If you're starting a new chapter in Canada, I understand that the journey to homeownership can seem both exciting and overwhelming. As a dedicated mortgage broker representing Mortgage Pal, I'm here to provide valuable mortgage advice in your preferred language and help you secure the best possible rate to make your transition smoother.

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Owning a home in Canada is a dream for many, and my friendly, but highly-trained ability is here to guide you from the very beginning until you step through the door of your new home.

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Can You Get a Mortgage as a Newcomer to Canada? As a newcomer, there are qualification and eligibility requirements you'll need to meet to purchase a primary residence in Canada. These requirements include:

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1. Having permission to work in Canada and a valid work permit (additional details may apply).

2. Being a permanent resident.

3. Being a refugee or temporary worker (additional details may apply).

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Unlock Your Best Rate and Mortgage Product No matter which bank you're currently with when you arrive in Canada, there may be opportunities to find a mortgage at a different lender that can save you money.

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I specialize in dealing with banks and lenders on your behalf, leveraging our substantial volume to secure a volume discount. With us, you'll receive unbiased advice aimed at helping you save on your first mortgage in Canada.

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How Much Down Payment Do You Need as a Newcomer? The down payment requirements for newcomers to Canada vary based on your residency status:

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1. Permanent Residents: With permanent residency (subject to federal eligibility and regulations as of March 2023), you can purchase a home with as little as a 5% down payment (subject to home price restrictions).

2. Non-Permanent Residents: Those with non-permanent resident status may need to provide a minimum of a 10% down payment.

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For down payments of less than 20%, mortgage default insurance is typically required, which can potentially help you qualify for a better rate. See further details below.

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Foreign Buyers Ban, Amended March 27, 2023

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Those with permission to work in Canada and a valid work permit can buy a primary residence (other details apply)

• Ban exceptions include permanent residents, refugees, and temporary workers (though with eligibility requirements imposed for home buying)

• Have questions? Give us a call today

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Insured Mortgage Programs for Newcomers All three mortgage default insurance companies (CMHC, Sagen, and Canada Guaranty) offer New to Canada Programs to assist eligible newcomers in obtaining a mortgage.

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Key Features of Newcomer Mortgage Programs:

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• Permanent residents have access to all CMHC, Sagen, and Canada Guaranty mortgage insurance products (subject to product-specific eligibility requirements).

• For permanent residents with limited Canadian credit history and no access to foreign credit bureaus, alternative payment history sources may be considered for Loan-to-Value (LTV) ratios up to 95%.

• Non-permanent residents are subject to federal eligibility requirements and may have access to insured financing of up to 90% LTV for the purchase of a 1-unit, owner-occupied residential property.

• Standard product-specific premiums apply, and there are no additional fees or premiums based on residency status.

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Benefits of These Programs:

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• Access to Homeownership: These programs simplify and streamline the mortgage qualification process, making homeownership more accessible.

• Competitive Interest Rates: Insured financing provides the opportunity to secure competitive mortgage rates from various Canadian banks.

• Nationwide Availability: These programs are available across Canada, with no set maximum loan amount.

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Navigating the Mortgage Process as a Newcomer to Canada As your dedicated MortgagePal broker, I possess the knowledge and experience needed to guide you through the mortgage process. Here are the key steps:

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1. Determine Eligibility: Mortgage lenders will assess your employment history, credit score, and other financial details. I'll help you understand your eligibility and advise on any necessary preparations before applying for a mortgage.

2. Get Pre-Approved: Prior to house hunting, it's advisable to get pre-approved for a mortgage. This pre-approval will provide you with your best rate, a flexible mortgage product, and the ideal lender for your situation. It also helps you understand your affordability, making the home-buying process smoother.

3. Choose Your Mortgage: I'll assist you in selecting the right mortgage for your needs. We'll discuss the differences between fixed and variable rates and explore their pros and cons.

4. Apply for Your Mortgage: Once you've made an offer on a home (ideally with financial conditions), it's time to apply for full mortgage approval. I'll help you compile all the necessary documentation and submit your application to the lender on your behalf.

5. Close the Deal: Once your mortgage is approved, you can proceed to close the deal on your new home. Your down payment will be required when the lawyer is ready to transfer the mortgage funds on your closing (possession date). I'll assist you throughout this process, ensuring everything is in order.

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Your path to homeownership in Canada begins here. Feel free to reach out to me today, and let's get started on this exciting journey.