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25 Jan

NEW TO CANADA – MORTGAGES MADE EASY

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Posted by: Peter Paley

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.