Most Common Mortgage Challenges for New ImmigrantsAdmin
Thousands of people immigrate to Canada each year. For most, their first instinct is to rent an apartment or a house once they’re settled in Canada. On the other hand, many immigrants adopt the dream of owning a new home in a new country, so know you’re not alone.
As a newcomer who has just immigrated to Canada it’s likely you’re considering buying your first home, but we’re sure you’ll face many challenges. Fortunately, Mortgage Alliance is here to help you throughout the entire home buying process while overcoming the many struggles along the way.
Before you become a first-time homeowner, you need to be aware of all challenges that can arise before entering into the home buying process. Here’s first-time homebuyer guide on the most common mortgage challenges for new immigrants.
Little or No Credit History
Establishing credit in Canada can probably be one of the biggest challenges you will face as a newly immigrated resident. The main reason many people like yourself face this obstacle is due to a lack of financial history within this country. This makes it even more difficult to secure mortgage financing, therefore you should start to build or establish your credit immediately after you first arrive.
You can begin the credit-building process by bringing English reference letters from banks and creditors from your home country. This will help you to establish your credit more quickly.
Substantial Down Payments
It’s not uncommon for financial institutions (banks) to request substantial down payments of up to 35 percent from a new immigrant. This in itself can prove to be most difficult to any homeowner in general, more if you’re self-employed.
However, Canadian lenders are now tailoring mortgages to your needs, even if you maintain non-landed immigrant status. These lenders open up the possibility of securing a mortgage with as little as 5 percent down, providing you use your own money.
You will require the following documents and proof before you complete your mortgage application:
- Proof of your status in Canada and/or your passport
- Canadian SIN (Social Insurance Number)
- A letter of employment
- References from creditors or banks
- Documented proof for the source where you will get your down payment from
- Banking statements for the last 90 days
How a Mortgage Agent Can Help Newcomers
As a newcomer, you can seek out help from trained and qualified mortgage Agents who can advise and counsel you on building or be repairing your credit in Canada. They can also help you learn about all of the options available to you based on your special financial situation, find multiple lenders that will work with you, and get you pre-approved and then approved in no time at all.
To talk to a mortgage team today, get in touch with Mortgage Alliance.