How to Get a Mortgage When You’re New to Canada

Arriving in Canada in an environment where rents are very high and property prices have increased can be incredibly intimidating. At Spire, we’ve always had a focus on mortgages for New to Canada clients, but we’re focusing on improving these services more than ever.

What is required to get a mortgage as a Newcomer?

Whether you’re a landed immigrant with a work visa, a permanent resident or Canadian citizen, there are options to obtain a mortgage. Different situations will require different down payment amounts, mortgage terms and documentation.

All borrowers seeking triple A financing will be required to provide the following:

• Proof of Employment: employment letter with an overview of your salary and employment status.
• Proof of down payment: bank or investment statements show 90 days history on the down payment funds. (These funds can be in another country but the bank statements may need to be translated).
• Proof of Acceptable Credit provided by the following: Landlord reference letter and monthly bank statements showing rental payments, utility bills, telephone bills, cable bills, insurance payments

Work Permit Holders:

• Of an active work permit. (If your VISA is expiring, an extension of work permit or an application for the permanent residency can be used to prove residency)
• 5% of the required down payment funds MUST come from your own resources, and in most cases, must be in the country for 30 days. These can be gifted funds from a close family member.

Permanent Residents:

• Permanent Residents are not required to show 5% of the down payment is coming from their own resources.

**What if I’m moving to Canada without employment? **

If you’re arriving in Canada and have not yet secured employment, you are still able to purchase a home if you can come up with 35% down payment. We have several lender partners that will work with us to put together a “non-conforming” mortgage product. You will be required to have 35% of the purchase price for down payment as well as at least 12 months of principal, interest and taxes payments in your bank account in Canada.

These mortgage products come at slightly higher rates and require a 1% lender fee. Given the strong rental market in Alberta, many of our clients prefer to purchase a home and start building equity in a property vs. paying rent. To learn more about the “rent vs. buy” conversation CLICK here to check out our calculator.

Spire Mortgage Team has worked with many New to Canada families to help them settle into their own homes in Alberta. Purchasing your own home means that you can begin to establish community, settle your children in their school and start building equity.

At Spire we can provide services in English, French, Hindi, and Gujarati. We try our best and go above and beyond to ensure everyone is heard, no matter our language barriers, Canadian status or financial circumstances.