Newcomers to Canada

You are a newcomer to Canada and buying property with a bank loan looks like an impossible dream?

Don’t fret – meet with a Multi-Prêts broker. We have experts that can find a solution for your situation.

In the meantime, you can learn about the basic requirements for buying property in Canada below.

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Qualification criteria

As a newcomer to Canada, the two main criteria before applying for a mortgage are:

Have permanent or non-permanent resident status. Non-permanent residents must meet certain criteria.
Have full-time employment with a valid permit for more than 183 days after the date of disbursement (proof required: a letter from your employer).

Depending on your employment and credit history, mortgage application conditions will vary.

The door is open. Make yourself at home.

Your credit

For the newcomer to Canada, the main obstacle for getting a mortgage is lack of credit history.

Lending institutions rarely have access to your credit information from your country of origin, which means they don’t have any information on which to evaluate your credit. If your bank account is well in the positive, you may have a case; but few newcomers have that luxury. The best solution? Build a credit history.

Your credit rating

Your credit history is used to determine your credit rating.

Contrary to popular belief, the credit history of borrowers is only one of the elements that will be considered by financial institutions in their decision to grant a mortgage or not.

In addition to the credit file, the various mortgage lenders will pay particular attention to the debt ratios of the applicants.

To discover all the important factors to consider.

Your work history

Job stability also has an impact on your credit rating. Lending institutions like it when you have a history of staying with the same employer for a long time. That said, lenders are obviously pleased when you’ve changed jobs to improve your quality of life.

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Before buying a property

Before looking or buying a property, it is important to carefully follow the process. Take the time to get your affairs in order and do things properly so that you will be happy once you move into your new home.

Establish your ability to pay

Buying a property within your means requires calculating your borrowing capacity and other factors before you start your search. Costs associated with purchasing property include one-time costs, recurrent costs and maintenance costs.

One-time costs

Legal fees (notary)
Inspection fees (to uncover defects in the property )
Transfer tax (often called “welcome tax”)
Real estate agent commission (if necessary)

Recurring costs

Mortgage payments
Insurance
Municipal taxes and school tax
Utilities (electricity, internet, telephone, etc.)

Maintenance costs

Keep your home in good condition to protect your investment

Potential maintenance costs (roof replacement, doors and windows, renovations, etc.)
Condo fees (applicable to condo ownership)

Get a mortgage pre-approval

Before starting on your property search, you can get a mortgage pre-approval. This is an agreement between you and a lender for a specific amount with specific terms (interest rate, possibility to make additional payments, closing costs etc.)

This agreement does not commit you to anything and is usually valid for a period of 90 days. This gives you the opportunity to validate your ability to pay for a home of your own. A Multi-Prêts broker can help you obtain a mortgage pre-approval.

Narrow down your property search

Before you start house hunting, define the type of property and area where you want to live, based on your current and future needs.

Property type

Condo
Single family dwelling
Townhouse
Other

Property characteristics

number of bedrooms
number of bathrooms
city vs suburb
with a garage
with a pool
etc.

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