When you are buying a home and need a mortgage the process isn’t always smooth. If you are new to Canada the process can be even more involved so taking a few steps before can save you a lot of time and energy. Here are some tips we would recommend:
Getting Ready to Finance your First Mortgage
1. Get your down payment funds into Canada as soon as possible. The longer the funds have been here, the less questions asked.
2. Keep track of your perfect payment history: ie. payment of rent, hydro, utilities, telephone, cable, cell phone, auto insurance.
3. Understand that whomever’s income you are using for the mortgage application is going to be the person for whom we need the perfect payment history. For example, if spouse A is making the income then the utilities should be in the name of Spouse A. If Spouse B is making the income then proof of Spouse B perfect payment history will be required. In other words don’t put all your bills under one spouse’s name if you are using two spouses’ income.
4. Understand “New to Canada Program” is for an Owner Occupied home not a rental.
For Future Reference
When it is time to put your application together, here are the kind of items lender’s will request:
1. International Credit Report (Equifax or Transunion for immigrants from US or UK)
2. 12 months rental payment history, hydro, utilities, telephone, cable, cell phone, auto insurance
3. Letter of reference from a Bank and or 6-12 months bank statements
4. Copy of valid work permit or landed immigrant status
5. Letter of Employment proving 3 months full time employment in Canada
6. 90 days of Bank statements showing accumulation of down payment.
7. Recent pay stub
8. If you have been in Canada long enough to have filed a year of taxes then a copy of the Notice of Assessment the Canada Revenue sends to all filers.
If you have any questions about mortgages please feel free to give us a call at 1-877-341-1299.