DID YOU KNOW:SOURCE: Genworth Canada 2019 Homeownership Study
25% of First-time homebuyers were born outside of Canada, including 16% who arrived in Canada within the past 10 years.
The process to secure a home loan or mortgage in Canada can seem overwhelming. New Canadian’s should take a three point approach to preparing for homeownership:
1. Save for a downpayment and closing costs
As Newcomers, down payment requirements are the same as any other Canadian’s and you can purchase your first home with as little as a 5% downpayment.
2. Build a Strong Employment and Credit History in Canada
Mortgage lenders use employment and credit history to determine if applicants are a safe credit risk. Be sure you can provide proof of stable employment by collecting your pay stubs or by asking your employer for a letter when you apply for your mortgage.
Build solid Canadian credit with 12 months of timely rent and utility payments (keep proof of payment). If you don’t already have a credit card, get one. Use it for minor purchases and pay it off within the grace period to show a pattern of responsible credit use.
3. Assemble Your Team
You will need to create a team to help guide and assist you through the home buying process.
Barb Pinsent from Mortgages by Barb suggests “Line up a Real Estate Agent and a Mortgage broker. Your team can answer any questions you have about the mortgage approval process and achieving your home ownership goal.”
If you are new to Canada or would like your Mortgage questions answered, contact Barb Pinsent at Mortgages by Barb on 780-370-1490.