Preparing for A Mortgage Application as A Newcomer to Canada
posted in Mortgage News
Canada welcomes thousands of newcomers every single year, and recent statistics have shown that as many as one in five home buyers are new to the country. However, even if the majority of those newcomers arrive safe in the knowledge that they have plenty of savings to put towards a down payment, there are still a few extra steps they’ll need to take in order to be fully prepared to make a mortgage application, and here are the most important ones:
Find a neighborhood that fits your needs
You might have had no problem making the decision to buy a home in Canada as a newcomer, and might even have easily selected the region you want to settle in, but finding a neighborhood that is an exact match for your lifestyle and needs, could prove a little trickier. While there are many fantastically welcoming and affordable neighborhoods in every town and city, you’ll need to find one that fulfils the majority of your needs, unless you don’t plan on staying there long term.
With different neighborhoods, comes different types of homes, and remember that this will also have an impact upon your final choice and eventual mortgage application.
Work to build up your credit history
Lenders always look to your credit score to help them determine whether you qualify for a mortgage, and if you’re a newcomer to Canada with no credit history, this could prove troublesome. With this in mind, you may want to consider working to establish your credit history as soon as you arrive in the country, and this can be achieved by applying for utilities in your name, or applying for a secured credit card.
Get the funds together for a substantial down payment
Even if you arrive in Canada as a newcomer with savings to put towards a down payment for a property, you should still work towards giving the biggest down payment you can afford, as this will give you so much more choice. Note that some find saving their dollars harder than others, and you may benefit from seeking professional advice from a financial advisor, or even an experienced mortgage broker.
Make sure you have all the required documents
From proof of resident status (such as a permanent resident card or work permit), to employment contracts, bank statements and a credit report from your country of origin, having all the necessary supporting documents ready to show your lender, will help give them an overview of your complete financial circumstances, and could help expedite proceedings.
Be open to working with a local mortgage broker
With help from a local mortgage broker, you can gain access to a variety of different lenders that you may not have been able to access independently, many of whom could offer you a mortgage deal tailored to your specific circumstances, at a great rate. Canada is an exciting and welcoming country to live in, where newcomers are treated like old friends! To find your ideal home as a newcomer in Canada, be sure to seek help from a local, experienced mortgage broker as soon as possible.