Written by Mary Carvalho   |   Posted on   |   297 views

In past blogs, we’ve covered “typical” mortgages and what’s involved.  You’ll need to provide proof of income, your credit rating and more to pass a “stress test” with your lender.  This will determine how much money you’re eligible to receive as a loan towards your home purchase.

For information on those nitty-gritty details and how to find the mortgage that suits you best, check out our blog: Mortgage 101.

However things can work a little differently when you’re a self-employed entrepreneur, or a new resident in Canada.

Financing Options for Newcomers to Canada

Newcomers to Canada often face unique challenges, such as limited credit history and unfamiliarity with the Canadian financial system.

Becoming a permanent resident makes it possible for new Canadians to apply for standard mortgages. If you are not a permanent resident of Canada yet, but you hold a current work permit and have submitted an application for permanent residency, you can still apply for a standard mortgage.

If you are thinking of applying for permanent residency, bear in mind that you must have been physically present in Canada for at least 730 days in the past five-year period. This means that applicants must have lived in Canada for 2 years minimum — or longer if you frequently travel outside the country.

a) Newcomer Programs: Some banks and lenders offer specific mortgage programs tailored for newcomers. These programs take into account alternative credit history, such as rental payment records, overseas credit history, or a letter of reference from a recognized financial institution in their home country.

b) Down Payment Assistance: Certain provinces and municipalities in Canada offer down payment assistance programs for newcomers, providing financial support in the form of grants or loans to help with the initial home purchase costs.  This can be an incredible help to getting financing secured on a home.

c) International Mortgage Transfers: In some cases, newcomers who have an established relationship with an international bank may be able to transfer their credit history to a Canadian financial institution, which can help strengthen their mortgage application.

Of course, it is recommended that individuals consult with a qualified mortgage professional or financial advisor to explore the specific financing options available to them based on their individual circumstances.

*All information provided by the Brantford Regional Real Estate Association (BRREA) and ITSO for the highest sales volume and highest number of completed transactions since January 1, 2015. All Brantford MLS® House Listings come from the various systems operated by Real Estate Boards and Associations across Canada. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used underlicense. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.



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