New To Canada Mortgage Programs are available to applicants who have immigrated to Canada within the last 60 months.

All three of Canada’s Mortgage Insurers (CMHC, Genworth & Canada Guarantee) all have insured options.  An insured mortgage is one where the borrowers have less than 20% down.   Banks and Credit Unions have a few conventional options for borrowers who have between 20%-35% down.

Insured Options: Permanent Residents Or Temporary Residents

  • Must have immigrated or relocated to Canada within the last 60 months.
  • Must have a valid work permit or obtained permanent residency.
  • All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS / TDS calculation).
  • Guarantors are not permitted.
  • Foreign Diplomats or any other foreign politically appointed individuals who do not pay income tax in Canada are ineligible for this program.
  • Clergy assigned to specific church requires only a visitor record.
  • A down payment grant provided under a mortgage insurer approved Affordable Housing Program may be used as down payment at 95% LTV (the borrower is not required to have 5% down payment from own resources).

5% Down:

  • 5% down payment from borrowers own resources via 90 days confirmed bank statements.  Down payment should be in Canada for the entire 90 days and in liquid and easily accessible cash.   Some exceptions can be made, however, it is a much more comfortable experience if the money can be in a Canadian Bank account for minimum 90 days.
  • Borrowers need to be permanently employed.   This means that each borrower will be required to provide and employment letter from their employer confirming their Start Date, Position, Wage Or Salary and the Guaranteed Hour Per Week Worked.  Two Paystubs will also be required to ensure that both the full hours are being worked and that the year-to-date hours and pay align with the employment letter.
  • Credit Score/Credit Worthiness can be demonstrated by an international Equifax or Transunion Credit Bureau or by providing 12 months of alternative credit sources (Rent receipts, cell phone bill, auto insurance, utilities).

10% Down:

  • 10% Down Payment Required.  5% from own resources.  The other 5% can come in the form of a gift from an immediate family member or a corporate subsidy.
  • Borrowers need to be permanently employed.   This means that each borrower will be required to provide and employment letter from their employer confirming their Start Date, Position, Wage Or Salary and the Guaranteed Hour Per Week Worked.  Two Paystubs will also be required to ensure that both the full hours are being worked and that the year-to-date hours and pay align with the employment letter.
  • Credit Score/Credit Worthiness can be demonstrated by a letter of reference from a recognized financial institution OR six (6) months of bank statements from primary account

Conventional Options: Permanent Residents (PR)

Each application must be supported by a sound business case for approval consideration and at a minimum must detail the following:

  •  Full financial picture
  •  Saving habits and debt load
    Is it consistent with their normal personal or business circumstances?
    Source and reasonability of both the down payment and Liquid Assets
  •  Reasonability check: Regardless of the down payment amount, a
    reasonable explanation must be provided as to how the funds were
    accumulated.
  • All foreign obligations must be disclosed.

20% Down:

 

35% Down:

Equity Offset Program

▪ The Equity Offset program will allow a customer to qualify for a greater mortgage amount by providing a minimum of 12 months’ worth of Principal, Interest, Taxes and Heating (PITH) in liquid assets, in addition to their down payment.  The typical customer for the Equity Offset program may be in the process of retraining or completing their education in their specified field. The customer may be currently earning less income than expected for a professional in their field of work.

High Net Worth Program
▪ The High Net Worth (HNW) program will allow a customer to qualify for a greater mortgage amount by verifying the customer’s liquid asset holdings in an amount equivalent to the mortgage requested. In addition to the customer’s down payment, a minimum amount of $250,000 in liquid assets on deposit in Canada is required to qualify for this program. The typical customer for the HNW program is someone with significant asset accumulation and may not be employed in a traditional manner. Their income may be coming from their assets alone.