New to Canada
Welcome! Mississauga and the GTA are known for their incredible ethnic diversity, and we warmly welcome you to your new home. We’re excited to help you navigate your pathway to homeownership in the community you have targeted. As a newcomer to Canada, your homeownership journey will be thrilling and complex. That’s why seeking the guidance and trusted experience of Mississauga Mortgage Broker Joe Purewal is the best way to ensure a successful outcome.
Homeownership Programs for New Canadians
Homeownership as a newcomer to Canada is possible thanks to specialized lending programs designed for new Canadians. These programs can allow you to buy a home with as little as a 5% downpayment. Joe Purewal is well-versed in all the available options, so you can access the program that best meets your needs.
It’s important to note that if you have lived in Canada for over five years, you are no longer considered a newcomer, meaning you must apply for a standard mortgage.
Credit History is Essential
Demonstrating creditworthiness is critical for mortgage qualifying, yet one of the first challenges many newcomers face is building a strong credit history. Starting from nothing may seem daunting, but if you have good financial habits, you are already building a history that may be acceptable to lenders that offer new to Canada lending programs.
These lenders will consider prompt rent payments, bank statements with pre-authorized payments for 12 months (for utilities, cell, internet, and insurance), evidence of regular savings for a year, and a credit report from your country of origin.
If you are early in the process, here are some ways to start building your credit history:
- Obtaining a credit card, using it monthly, and paying it off when you get your bill.
- Paying all your bills in full and on time.
- Applying for a small loan from your bank and making regular payments.
- Ensuring you have a consistent source of income by staying with the same employer for as long as you can.
As a permanent resident, you can buy a home with a minimum down payment of 5% on the first $500,000 and 10% on any amount exceeding $500,000. This downpayment needs to come from your own resources. Some lenders may require a higher downpayment. When qualifying for a mortgage, the general rule is the bigger the downpayment the better.
If your downpayment is less than 20%, mortgage default insurance is needed from either CMHC, Sagen, or Canada Guaranty. This insurance is a percentage of your mortgage and will increase your final mortgage amount.
Are you Self-Employed?
If you are self-employed, proving your income might present added challenges. However, by consistently depositing all your income into your bank account, you are proving a reliable income stream that lenders require. There are more hurdles when you are self-employed, but it is manageable, especially since Joe Purewal has the experience to guide you through the process.
You Need a Strong Advocate
Understanding the documents required to secure a mortgage can be overwhelming, but rest assured, Joe Purewal will carefully review your situation and provide the guidance you need to assemble the necessary documents, which may include:
- Proof of permanent residency
- Proof of income through employer pay stubs
- Proof of rental payments for 12 months
- Proof of your payments for utilities, cell, internet, insurance, etc.
- Letter of reference from your financial institution
- Several months of bank statements that include your regular savings
- An international credit report.
As your advocate, Joe will present your complete financial history and situation to lenders to secure the best program for your situation.
Trust Mississauga Mortgage Broker Joe Purewal
As you take the exciting step towards homeownership, trust in Mississauga Mortgage Broker Joe Purewal. Joe understands the unique challenges faced by those new to Canada and is a dedicated advocate for helping newcomers achieve their homes. With his top experience and unwavering commitment to your success, you can confidently embrace the future and make your dream of owning a home in Canada a reality. Welcome to your new beginning!