3 Requirements Immigrants in Canada Need for a Mortgage
One of the problems immigrants face is the long time it takes before they can own a house in the country they transferred to. However, immigrants in Canada will not experience the same problem as they can own homes shortly after moving to the country.
Through the New to Canada Program, immigrants can now apply for mortgages to get their first home away from home, even if they have only lived in Canada for the past five years. However, what do immigrants need to apply for a mortgage in Canada? Here are some ideas.
1. THREE MONTHS OF FULL-TIME EMPLOYMENT
Immigrants who want to apply for a mortgage in Canada must work for three consecutive months in Canada with a full-time job. The idea of working for three months is to ensure that the applicant can quickly get a job.
It means that their employees must not be seasonal while they continue to work on a job for three consecutive months or 90 days. Meanwhile, seasonal employment includes working as a summer camp counselor, ski instructor, tour guide, and other jobs dependent on the country's current season.
2. MORE THAN 5 YEARS OF RESIDENCY
It is most wise to have a work permit or Permanent Residency to be considered for conventional mortgages. Otherwise, you are considered a non-resident and must have a bigger down payment and be exposed to foreign taxes.
3. EXCELLENT CREDIT SCORES
Immigrants who want to apply for a mortgage in Canada need to have an excellent credit score. Their credit history is a decisive factor that lenders analyze when they want to determine the applicant's ability to repay the mortgage loan.
Therefore, immigrants need to ensure they have a good credit score which they can achieve by reviewing various factors affecting the credit score from paying their bills on time, including loans, credit cards, and mortgages acquired after years of using the service inefficiently.
Things Lenders Review before Approving a Mortgage
Other factors that lenders analyze when they want to approve the mortgage loan include borrowers' employment history, personal credit history, and current income.
The income refers to a stable source of funds and the ability to pay the loan over time. Some lenders require a specific income amount before approving an application. Therefore, shopping around is best to get the best deals possible.
Meanwhile, the credit report states all transactions made in the past years, including obligations. Applicants can get a copy of their credit report beforehand to avoid delays in the application process.
Lastly, the employment history keeps track of all the jobs an applicant has taken in the past years, stating the duration of how long they have worked on the job. Sometimes, lenders may ask for supporting documents from applicants with less than two years of experience in any position taken before.
THE BOTTOM LINE
Immigrants who want to apply for a mortgage in Canada must prepare certain documents before applying. The document requirements depend on the lender they are going to use. However, the same guidelines will apply to a majority of lenders. These are the three months of full-time employment, more than five years of residency, and excellent credit scores.
Level Up Mortgages offers the best loan options for first-time home buyers in Canada. Our goal is to assist our clients with mortgage financing to help them secure their dream homes. Immigrant or not, it is our joy to assist our clients in acquiring the house they have always wanted. Learn more about mortgages for newcomers to Canada, and apply for a home loan today.
Do you want to learn more about mortgage financing in Canada? Level Up Mortgages supports homebuyers and homeowners in attaining success in their mortgage journey with mortgage strategy, digital mortgage education, and introductions to all the other experts you need to succeed in home buying and your personal finance. To assist homebuyers and homeowners in purchasing or refinancing new homes, we work with premier banks and best-rate mortgage lenders in British Columbia and Ontario. Get in touch with us today!