How To Qualify For New To Canada Mortgage

8 August 2023 By: sunlitemortgage0 comments

Are you new to Canada and looking to buy a home? The New to Canada Mortgage Program can help you get a mortgage, even if you still need to establish a Canadian credit history. Buying a home is a big decision, especially if you’re new to Canada. There are many things to consider, including the cost of housing, the type of mortgage you want, and the eligibility requirements.

If you’re new to Canada, you may wonder if you can get a mortgage. The good news is that you can, but there are a few things you need to know.

The New To Canada Mortgage program

The New to Canada Mortgage Program is an excellent option for newcomers to Canada who want to buy a home. It can help you get a mortgage even if you still need a Canadian credit history. However, the program has some restrictions, so it’s essential to understand the borrower’s eligibility requirements before you apply.

Eligibility Requirements Of A New to Canada Mortgage

• Be a permanent resident of Canada.
• Borrowers must have immigrated or relocated to Canada within the last 60 months.
• Have three months’ minimum full-time employment in Canada.
• Have a down minimum payment of at least 5% of the home’s purchase price.
• Have a maximum gross debt ratio (GDS) of 44%.
• Your income must be stable.

It’s important to note that not all New to Canada borrowers qualify under this program with a traditional lender. Some borrowers might have to put a minimum of 20% if they don’t qualify under this program based on income of GDS.

New to Canada Mortgage Rules

Mortgage rules are in place to protect Canadians from overextending themselves financially.

The rules include:

• A mortgage qualification rate of 5.25% or 2% above the mortgage contract rate.
• A limit on the amount of debt that borrowers can have.
• Borrowers to have a down payment of at least 5% of the home’s purchase price.
• Only income declared in Canada can be used to qualify.

Here are some tips for getting approved for a New to Canada mortgage:

• Get a mortgage pre-approval before you start shopping for a home. A pre-approval will give you an idea of how much you can afford to borrow and will make the home-buying process go more smoothly.
• Start building your Canadian credit history. You can do this by applying for a credit card or a line of credit.
• Save up for a down payment—the larger your down payment, the lower your monthly mortgage payments will be.
• Get your finances in order. Make sure you have a stable income and that you’re not carrying too much debt.
• Be prepared to provide documentation. When you apply for a mortgage, you must provide documentation proving your income, assets, and debts. This documentation should include pay stubs, bank statements, tax returns, utility bills, car payment history, and lease agreements.
• Be patient. The mortgage approval process will depend on how prepared you are with your documents. Keep going even if you’re not approved for a mortgage right away. Your mortgage broker will be able to lead you in the right direction.

If you would like assistance in getting a new to Canada mortgage, you can contact a Sunlite Mortgage agent at (877) 385-6267.

Sunlite Mortgage is a mortgage brokerage that specializes in helping newcomers to Canada get mortgages. They have a team of experienced mortgage professionals who can help you understand the requirements and get approved for a new-to-Canada mortgage.

Contact Sunlite Mortgage today to get started on your dream of buying a home in Canada.