Even if you’re a new immigrant to Canada with no established credit with one of the major credit bureaus, you still can qualify for an insured home mortgage if you meet the following requirements.

• You have to been granted landed immigrant status by Immigration Canada.

• The bank will need to be able to verify your source of down payment and the estimated closing costs as well as your source(s) of income to support the repayment of the mortgage and the payment of related costs such as property taxes.
• Records showing payment of rents and two other monthly payment obligations.  The rent verification information will need to include bank statements and a letter from your landlord stating when you moved in, the monthly rental amount that was paid,  and the payment history.The other two types of payments can be for such things are telephone, cable, power and can be verified by bank statement or paid invoice.   All payments must have been made on time, or your application for mortgage will be declined.

  If you can’t show the 12 month payment histories mentioned above, then you will need to provide 6 months of bank statements from your main account or a letter of reference from a recognized financial institution.

• To be classified as a new immigrant for the purposes of obtaining an insured mortgage, you must have moved to Canada in the last 36 months and been employed on a full time bases for at least 3 months.
• If you are using a guarantor, their income will also need to be verified.

For individuals that fit these criteria, insured mortgages can be secured for up to 95% of the property value as long as the down payment comes from the borrowers own sources.  For loan to values less than 95%, the amount put down greater than 5% can come from a relocation subsidy or be a gift from an immediate family member.

The debt service requirements that apply are the same as those applied to conventional mortgages.  All foreign held debts will be added to the total debt service calculation while all foreign rents earned will be excluded from the calculations.

Amortization periods can be as high as 35 years in length with fixed and variable rate mortgage terms available.

Please be reminded that the above requirements are for informational purposes only and do not exactly represent any particular lender program.

If you would like assistance with locating and securing an insured mortgage, I recommend that you give me a call so that we can go through your situation together and determine the best course of action.

Click Here To Speak With Mortgage Broker and Insured Mortgage Specialist Joe Walsh

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