New to Canada Mortgage Program and Rules

New to Canada Mortgage Program and Rules

New to Canada Mortgage Program and rules

At Lendramp mortgages we have specialized on how to get our clients approved that are permanent residents or are on a work visa. We work closely with many lenders and insurers and have put together the ultimate new to Canada program for our clients to not only get approved, but also to get the best deals on the market when you are buying your new home.

Getting a mortgage for the first time can be complicated and many lenders lack the knowledge necessary to get new to Canada clients approved. Contact us today to get the knowledge you need to get approved fast at a great rate!

Online there is limited knowledge on the special programs available for people on work visas or have their permanent residence. We will explain it all to you including the lendramp new to Canada program.

There are 3 insurers in Canada that offer a new to Canada program, the banks use the insurer guidelines to approve clients for the new to Canada program. The 3 insurers are SagenCanada Guarantee and CMHC. Each of these insurers have their own guidelines. Because we are mortgage brokers with access to all of these lenders, I will help simplify the minimum requirements and rules for you.

Requirements for permanent residents

Minimum downpayment 5%

Max term Length 25 years

Rate types: Fixed, variable, capped or adjustable

Max Property value $1, 000, 000

Maximum of 2 units 1 must be owner occupied

  • Must have immigrated to Canada within the last 5 years.
  • Minimum 5% down payment from borrower’s own resources. Remainder may be gifted from an immediate family member or from a corporate subsidy. No borrowed down payments permitted.
  • Borrower required to have permanent resident status/landed immigrant status, or a valid work permit.
  • Minimum 3 months of full time employment in Canada (professional employee relocation exempt from this requirement).
  • No mortgage delinquencies, previous bankruptcies or foreclosures.
  • All debts held outside of Canada must be included in qualification ratios.
  • Foreign rental income may not be used in qualification ratios.
  • Maximum debt service ratios: GDS 39% / TDS 44%

Requirements for Work Visas

Minimum downpayment 5%

Max term length 25 yrs

Rate types: Fixed, variable, capped or adjustable

Max Property value $1, 000, 000

Maximum of 2 units 1 must be owner occupied Must have immigrated to Canada within the last 5 years.

  • Minimum 5% down payment from borrower’s own resources. Remainder may be gifted from an immediate family member or from a corporate subsidy. No borrowed down payments permitted.
  • Borrower required to have permanent resident status/landed immigrant status, or a valid work permit.
  • Minimum 3 months of full time employment in Canada (professional employee relocation exempt from this requirement).
  • No mortgage delinquencies, previous bankruptcies or foreclosures.
  • All debts held outside of Canada must be included in qualification ratios.
  • Foreign rental income may not be used in qualification ratios.
  • Maximum debt service ratios: GDS 39% / TDS 44%

New to Canada Mortgage Rules and Questions

What is the minimum credit score?

There is no minimum credit score for this program as many people will not yet have credit in Canada. You cannot however have bad credit. If you have late payments or collections you will not qualify for this program. Some insurers have a minimum credit score for one applicant of 680.

How much money do I have to make to qualify?

Qualifying for a new to Canada mortgage will allow a total debt servicing ratio of 43%. This means debt vs income. If you want to know your debt servicing ratio please click apply now and input your income information and debt.

Do I have to have a full time job to qualify?

No you do not need a full time job. However you need to have minimum of 3 months of employment and guaranteed hours or salary.

How many hours is considered full time?

37.5 hours are considered full time. Most employer will consider full time employment 40 hours per week.

Can I qualify if my work is casual?

Yes you can qualify however they will require a 2 year average of you t4’s or notices of assessment to quantify your income.

What is the minimum downpayment for new to Canada?

The minimum downpayment for the new to Canada mortgage program is 5%.

What kind of properties can I buy using the new to Canada Program?

You can purchase a house, condo or acreage.

How long do I have to be at my job before I can qualify?

You will have to be at your job for a minimum of 3 months to qualify for the program. The reason for this is that this may put you beyond your probationary period.

How many applicants can be on a new to Canada mortgage?

Up to 4 applicants can be on a new to Canada mortgage. The property must be owner occupied by at least one resident.

What happens if my downpayment is in the old country?

If your downpayment is in your home country you will have to bring the money and deposit it in your bank account for a minimum of 3 months.

Do I need an international credit bureau?

An international credit bureau can be used as a source of alternative credit. You will need 2 good sources of alternative credit to qualify for the program.

What is alternative credit?

Alternative credit is a credit source not listed on your credit bureau. The banks accept letters from your financial institution, letters from landlords, international credit bureaus, cell phone bills and bank statements for this. If you have any questions in regards to this please call us anytime.

Can I qualify for the new to Canada program if I have no credit?

Yes you can qualify if you have no credit on your credit bureau. We will give you options of what you can use for alternative credit.

What banks have a new to Canada mortgage program?

Many banks will have a New to Canada program through an insurer. However there are differences between the guidelines of every bank. We look at your overall scenario and choose a lender that will approve your unique situation. It is better to talk to us first about your scenario so that we can put you in the right direction. We can also get you lower rates in most cases at the banks.

What is an insurer?

An insurer guarantees the bank that you will not foreclose on a property. Using an insurer is required by all banks when you are putting less than 20% down on a mortgage.

How can I find out if I am eligible for the new to Canada Program?

Please click apply now or call us to find out if you are eligible for the program. We are Edmonton based mortgage brokers that can help you anywhere in Canada.

Can I receive a gift as the downpayment with the program?

Yes you can receive a gift from an arms length family member like a brother, sister or parent.

Can I qualify for the first time home buyer incentive if I am using the new to Canada program?

Yes you can use both of these programs together.

Can I get a mortgage in Canada if I am not a citizen?

Yes you can get a mortgage if you are not a citizen. I have successfully helped people get mortgages when they are permanent residents, visa residents and overseas buyers! The more you put down as a downpayment the easier it gets to get approved!

Documents required for the New to Canada mortgage program

  1. Employment Letter (Stating guaranteed hours or salary and not on probation)
  2. Most recent Pay Stub
  3. Copy of visa or Permanent residency
  4. 3 Months history of the accumulation of the downpayment, this is usually bank statements or rasp statements etc. (must have name and account number on it)\
  5. Last years t4
  6. Alternative credit: Letter from landlord and 12 months bank statement
  7. 12 months of utility bills with your name on it.
Have us contact you today, and get the lowest rates

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