The Challenges Newcomers in Canada Face When Buying a House
Welcome to Canada, your home sweet home!
Or so you would think, considering the dramatic increase in newcomers settling down across the great nation.
If you’re one of these new Canadians, or even if you’re thinking of making the move, there are a few challenges we all share, and it might be time to prepare yourself for them ahead of time. What are they?
Affordability
The cost of living in Canada is significantly higher than in other countries globally. This is especially true if you are used to living in a farming or fishing town and are planning to move to one of the larger cities such as Montreal, Toronto, or Vancouver.
The good news? Play your cards right, and you can even turn your affordability challenge into an opportunity and look for opportunities to invest in more affordable areas.
Bidding Wars
Most of us are familiar with the idea of bidding wars in real estate, but it may be a different experience when you’re moving to Canada. Bid wars are especially common in Toronto and Vancouver, where house prices have been skyrocketing due to economic growth, immigration, and limited housing supply.
If you’re sensing a sale is taking place, and a bidding war is going on around you, take a step back and ask yourself: what’s my strategy? If you decide to get in the mix, make sure you know the long-term financial consequences.
Lack of Sufficient Credit History for a Mortgage
If you’re thinking of applying for a mortgage at your new home in Canada, your credit history may not be long enough to get you approved.
While home buyers with substantial credit history may not have any problem getting approved, immigrants with a limited credit history may be asked to present extra proof of funds or pay a higher interest rate.
This makes it even more important to have a good credit history in Canada before moving here.
Language Barriers
It’s important to become familiar with the language of your new country, especially if you plan to settle in a large city. You will likely have limited access to a large network of peers from your own country and may need to interact with people from a different cultural background.
The best way to avoid this challenge is to find a way to learn the language and set a goal of how long it will take you to be comfortable in a conversation and understand what people are saying.
Job
Finding a job in Canada is a lot harder for newcomers than those born and raised here. A lot of newcomers struggle for a variety of reasons. One of the reasons is that many immigrants move to Canada because of their spouse’s job.
The spouse with the job has an advantage due to their networks and local job knowledge. This is why it’s important to go in with something to offer. It could be previous experience or a certification that will make you a more attractive candidate.
THE BOTTOM LINE
While Canada does present some challenges for newcomers wishing to settle down, the benefits outweigh these roadblocks. Canada is a great country to live in and the people are friendly and welcoming.
Are you a first-time home buyer in Canada? 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!
See what you qualify for or contact Paul to get your pre-approval.
Paul Davidescu (www.levelupmortgages.com)
Level Up Mortgages
604-809-3188
paul(at)levelupmortgages.com
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