Mortgage For New Immigrants Canada

Moving to another country permanently is already a big deal. But if you even decided to buy a house in that country — you are a real hero to us. Especially for you, we will be talking about mortgage for new immigrants canada, what you can expect from it, what documents you will need, and other useful information. 

Types of Immigrational Statuses

Before jumping to the mortgage for new immigrants canada section let’s talk a bit about your immigrational status. We will not be taking into consideration cases where someone crossed the border illegally, only about how to become fully rightful for mortgage citizens of a new country.

Mainly, there are two types of immigration statuses that will allow you to receive a mortgage:

  • Permanent resident (PR) 
  • Refugees and Citizenship Canada (IRCC)

If you do not have PR you need to have at least legal working permission. 

Canadian immigration is a very complicated process that can take up to 4-5 years. Before going through the application process it is still possible for you to apply for PR with IRCC. When applying for PR from IRCC, the main document you need to provide is a valid passport or travel document issued by the Canadian government. You also need a birth certificate as well as a citizenship document from your country of origin. In addition, IRCC requires you to submit a completed Application For Permanent Residence form.

Bank Mortgages Programs For Newcomers to Canada

Now, when the question with a legal stay in the country is solved, let’s go to the mortgage for new immigrants canada section and see what different banks can offer to us. 

CIBC Newcomer Program Mortgage

If you are looking for more affordable housing, CIBC is an option you can use. It is a new program that offers low interest rates to immigrants who are looking for finance to buy their first home or condo, or to refinance their current mortgage with CIBC. To qualify for this program as an immigrant, you need to be a PR and have a Canadian credit rating. 

However, there are other options in CBIC. For example, they also offer Newcomer to Canada Plus Program Mortgage and Foreign Worker Program Mortgage. All programs in different banks mainly differ in their requirements. In this case, for the plus program, you do not need Canadian credit history and for the foreign worker you do not even need to have PR (only working permission).

RBC Mortgage Programs For Immigrants

This bank has a program for newcomers to Canada called RBC StartRight. It is a program that will help your family to settle in a new country and not worry about finances. To meet the qualifications for this program, you need to have a PR, be a new innovator or entrepreneur or have accepted a job offer from a Canadian employer. You can also apply if you are an international student enrolled in one of Canada’s institutions of higher education who intends to continue residing in Canada after graduation. 

This is how you can apply for a mortgage from RBC bank Canada, with the StartRight Program: it is available to someone who has a Permanent Resident Visa (PRV) and has been living in Canada for less than 2 years up to 5 years, or has accepted a job here in Canada. 

Unlike other banks that require a 5% equity stake in the business, RBC StartRight Program does not require this. So, if you are an international student or new immigrant without business experience then this will be one solution that will fit into your budget. 

Scotiabank StartRight Programs for Permanent Residents

This bank gives similar mortgage programs to immigrants called Scotiabank StartRight. It will help you through the immigration process and your settlement. You will receive support during your first year after the PR application. If you are looking for a similar program to the one offered by RBC, this is an option you can choose. 

If you need help with your business, this bank will work with you to meet your needs. You can go for financing for your business project or financing to complete the construction of your home where you want to live with your family after resettling in Canada.

What Other Documents do You Need To Provide For Mortgage?

It is still possible for you to receive a mortgage after resettling in a new country with the help of a mortgage broker in Canada. So let’s talk about what documents can be useful for brokers to help you do this.

You need to provide the following for that mortgage broker Canada:

  • Personal information contained in your passport or travel document
  • Employment or business information contained in your certificate of incorporation
  • Property information is contained in your latest property tax statement 
  • Bank statements for the last 3 months, showing all bank accounts you have in your name including savings accounts

It is still crucial to confirm all information listed below with official bank websites and in the relevant authorities.

What Is Important When Applying for Mortgage as a Newcomer in Canada?

Let’s breathe deeply and stay positive, remember that everything is possible if you want it! After regarding all these bank programs we can do a little summing up. When applying for a mortgage as a newcomer in Canada you must consider:

  • Your immigrational status
    • You are a permanent resident (down payment of at least 5%)
    • You have an only work permit (down payment of at least 15% or even 35%)
  • Your working experience and time of staying
    • You have come to Canada within the last 5 years and worked there for more than 2 years
    • You have come to Canada within the last 5 years and worked less than 2 years (However, 3 months employment history in Canada)
  • Your credit history in Canada
    • You have it and it is good
    • You have it and it is bad (sorry to hear that, that’s bad)
    • You do not have it at all (At least a letter of reference from a bank in your home country is required)

Mortgage For New Immigrants Canada: Conclusion

As you can see, each bank offers different programs and some require different documents. We also do not talk about the mortgage program fees, some banks offer low interest rates but still more than others. You need to know more about that and to be fully prepared, because moving to another country is the decision of your life.

Practical mortgage knowledge is very important because it will be your helper while making your future in Canada. Next time when you are looking for a mortgage with a broker in Canada for your new business or house purchase, remember these helpful tips from us! 

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