Understanding New to Canada Mortgage Programs

Moving to Canada is an exciting milestone, and for many newcomers, homeownership is a top priority. However, navigating the mortgage options available for those new to the country can be complex. At Dominion Lending Centres Mainstream Mortgages, we’re here to simplify the process and help you find the right mortgage solution to suit your unique needs. Here’s everything you need to know about New to Canada mortgage programs.

Who Qualifies for New to Canada Mortgage Programs?

New to Canada mortgage programs are designed for individuals who have immigrated to Canada within the last 60 months. Both insured and conventional mortgage options are available to help you achieve homeownership:

• Insured Mortgages: For those with less than 20% down payment.
• Conventional Mortgages: For those with 20-35% down payment.

Let’s break down these options.

Insured Mortgage Options

To qualify for an insured mortgage, applicants must:

• Be permanent residents or temporary residents with a valid work permit.
• Have immigrated to Canada within the last 60 months.
• Include all foreign debts in the total debt servicing (TDS) ratio.

Key Requirements:

• Down Payment:
  • 5% down payment from personal resources or as a gift from an immediate relative.
  • Funds must be in a Canadian bank account for at least 90 days (exceptions may apply).
• Employment Verification:
  • Full-time permanent employment for a minimum of 3 months.
  • Provide an employment letter confirming start date, position, salary, and hours worked, along with two recent paystubs.
• Credit History:
  • For 90.01%-95% Loan-to-Value (LTV), borrowers from the US or UK need a strong credit bureau report. Alternatively, provide 12 months of timely payments for rental, utilities, or other recurring bills.
  • For up to 90% LTV, borrowers must provide six months of bank statements or a reference letter from their financial institution.

Conventional Mortgage Options

For borrowers with 20%-35% down payment, conventional mortgage programs are available. These programs require a solid financial profile, including:

• 20% Down Payment:
  • A full financial picture, including savings habits, debt load, and the source of funds.
  • Disclosure of all foreign obligations.
• 35% Down Payment:
  • Access to the Equity Offset Program, which allows borrowers to qualify for a larger mortgage amount by showing 12 months of Principal, Interest, Taxes, and Heating (PITH) in liquid assets.

Specialized Mortgage Programs

• High Net Worth Program:
  • For borrowers with significant assets. Requires a minimum of $250,000 in liquid assets on deposit in Canada.
  • Ideal for individuals whose income comes primarily from assets rather than traditional employment.
• Future Income Program:
  • For permanent residents with a minimum credit score of 680.
  • Allows borrowers to qualify for higher mortgage amounts by demonstrating future income potential and net worth.
  • Maximum mortgage amounts: $2.5M (joint borrowers) or $1.75M (single borrower).
  • Up to two properties and 30-year amortization are permitted.

Start Your Homeownership Journey Today

At Dominion Lending Centres Mainstream Mortgages, we’re committed to helping newcomers navigate the mortgage process with confidence. Whether you’re exploring insured or conventional options, our team is here to guide you every step of the way.

Ready to learn more about your options? Contact us today, and let’s get you one step closer to owning your dream home in Canada.

The economic landscape is shifting, and with the new Trump Administration in the United States, there is speculation about how potential policies and global trade adjustments could impact Canada. Economists and financial analysts are voicing concerns about the possibility of economic challenges ahead, including employment uncertainty. While we can’t predict the future, one thing is clear: preparation is key.

Refinancing Your Mortgage: A Strategic Financial Move

If you’re a homeowner, now might be the perfect time to consider refinancing your mortgage. Refinancing can help you safeguard your finances and weather potential economic turbulence. Here’s how:

1. Consolidate High-Interest Debt & Improve Cash Flow: High-interest consumer debt, like credit cards, can be a heavy burden. By refinancing your mortgage, you can access your home’s equity to pay off these debts. This simplifies your finances by consolidating multiple payments into one lower-interest payment, saving you money in the long run.
2. Strengthen Your Savings: Refinancing can allow you to lower your monthly mortgage payments, freeing up cash flow to build an emergency fund. A healthy savings account provides peace of mind and a financial cushion in case of unexpected expenses or job loss.
3. Lock in Stability: With interest rates still relatively low, refinancing allows you to secure a fixed rate, protecting you from future rate increases. A stable and predictable payment can make budgeting easier, especially in uncertain times.
4. Invest in Your Future: By restructuring your mortgage, you might free up cash to invest in other opportunities, such as education, home improvements, or even starting a small business. These investments can help you adapt and thrive, even in a challenging economy.

Is Refinancing Right for You?

While refinancing has many benefits, it’s not a one-size-fits-all solution. Factors like your current mortgage terms, the value of your home, and your long-term financial goals all play a role in determining whether refinancing is the best move.

At Dominion Lending Centres Mainstream Mortgages, we’re here to guide you through the process. Our team of experts will help you assess your options, calculate potential savings, and create a refinancing strategy tailored to your needs.

Prepare for the Future – Start Today

The best time to strengthen your financial position is before challenges arise. Refinancing your mortgage now can help you face the future with confidence, no matter what lies ahead.

If you’re ready to explore your refinancing options, contact us today. Let’s create a plan that works for you and your family.