You’ve moved to Canada and settled into your new surroundings. Now you’re considering buying a home and establishing roots. But where do you start?
Working with a mortgage agent is your first step, as we understand the ins and outs of New to Canada mortgage programs, and can ensure you have everything you need to qualify for a mortgage before you head out house hunting.
Employment and credit history
In order to qualify for a mortgage, you’ll need a minimum of three months’ full-time employment in Canada.
You’re exempt from this rule, however, if you were transferred under a corporate relocation program.
You’ll also need an established Canadian credit or 12 months of bank statements. Lenders are also interested in rental payment history or payment history for utilities, phone, insurance, etc.
It’s important to start building a solid credit history as soon as possible, as it takes time.
Here’s how to get started building your Canadian credit history:
- Open a bank account – either chequing or savings, and make regular transactions to demonstrate your ability to manage money
- Apply for a credit card and use it regularly. Ensure you pay the amount owing in full every month and avoid carrying a balance
- Take out a loan and demonstrate responsibility by consistently making payments on time
Down payment
Another significant step in the homebuying process is to establish a budget and set aside money for a down payment as soon as possible.
There are programs available that allow for as little as a 5% down payment. Your down payment can come from a variety of sources including personal savings, a non-repayable gift from an immediate family member or proceeds from the sale of a property.
Have questions about buying your first home in Canada? Answers are a call or email away!