The Different Mortgage Options for U.S Newcomers to Canada
People tend to rely on mortgages to fulfill their dream of buying a home. Besides the financial relief that they can get from it, it will also allow them to focus on other expenses that they may incur along the way. The thing is, things are way different in Canada than it is in the U.S., that is why one must familiarize themselves with the differences so they may get a great deal out of it.
Below are just a few of the mortgage options that one may get as a newcomer in Canada.
1. The Conventional Loans
This type of mortgage is based on the borrower's desire to make large down payments. This is the same with conventional loans in the U.S., though the latter offers lower rates and can be used in the event that a borrower has a large down payment.
On the other hand, Canadian conventional loans have higher rates that can be paid for in smaller chunks.
2. The Government-insured Mortgages
There are now more flexible mortgage rules and a better loan-to-value ratio. This is why more and more people are attracted to this type of mortgage. Since the government may insure down payments below 20%, you can have a down payment as low as 5%.
3. Non-Conforming Mortgages
If you want to build a house, then this is the best type of mortgage for you. This type of mortgage is for people who want to build a house for their families. As of the moment, you need a down payment that can be as high as 35%, but this can still be reduced if you are able to get a good mortgage broker. This is a great option for people who want to build a house at a faster rate.
Am I Eligible for a Newcomers Mortgage?
Yes, you are. Those seeking mortgages for their new home in Canada can even be insured against mortgage default by the Canada Mortgage and Housing Corporation (CMHC). Just be sure that you have:
Immigrated to Canada within the last five years Legal status in Canada Been employed full-time in Canada for at least three months A down payment of at least 5% Met the qualification ratios
THE BOTTOM LINE
Mortgages are indeed one of the best ways to get some financial relief. You just have to know which mortgage option is best for you and keep in mind that what works for you in the U.S. will probably not work for you in Canada.
Take note of our pointers above, and you will never be lost in the shuffle of Canada's mortgage regulations and policies.
If you are looking for reliable mortgage brokers in Canada, look no further than our experts here at Level Up Mortgages. We simplify the Mortgage journey for new buyers, newcomers, and the self-employed.
Call us today and let us discuss all your available mortgage options in no time.