New Immigrant Mortgage program

 

 

New Immigrants

New immigrants with permanent resident status can qualify for high ratio mortgages. As a rule of thumb, CMHC requires one year of job stability for the 5% down payment program. Naturally, the longer the better, especially if there are weaknesses in the proposal such as a low credit score and/or gifted down payment.

The one year minimum requirement is not a hard and fast rule, however, and may be reduced at the discretion of the lender/CMHC. There are other factors that are considered. The job type is important. For example, a job as a university professor will carry more weight as compared with a person working at a fast food restaurant.

Secondly, because lenders/brokers have the ability to pull a US credit bureau, immigrants from the US may be able to qualify for a 5% down payment mortgage sooner.

If the borrower is able to increase their down payment, their chances of obtaining a high ratio mortgage increase significantly. A borrower who has been on the job for only a month, but has 15% to put down may very well qualify for a high ratio mortgage. In this case, because the borrower may not have a long credit history in Canada, the lender may require a credit reference from their bank in the country of origin to determine the customer's paying habits.

Each individual case will be different and each lender will have different guidelines for dealing with new immigrants. Maria will be happy to provide a free consultation to a new immigrant looking to purchase their first home in Canada.

Still looking for a job?

If you do not have a job, banks have new immigrant programs. These programs generally require 35% down payment and a letter of reference from your banker overseas.