Homeownership for New Canadians
Homeownership may play a large part in your “Canadian Dream.” The good news is that buying your first home is not as difficult as you may think. Here are three things that will help you get started on your journey to homeownership:
- DOWN PAYMENT & OTHER FEES - minimum 5% of the purchase price for down payment from your own savings. Home buying costs typically do not differ much between newcomers and other Canadians. Traditionally, homebuyers make a down payment on the purchase of their home. Qualified new immigrants can purchase with as little as* five percent down payment. *Likewise, you will need to pay closing costs(legal fees, disbursements, land transfer taxes, an appraisal fee and title insurance) when you purchase a home. The more you save toward your down payment and closing costs, the sooner you can buy your own home. Down payment verification will be required via 90 day bank statements showing history of savings and balance in your bank account.
- PROOF OF EMPLOYMENT To be approved for a mortgage under the New To Canada program, you will need proof of stable ongoing employment income. You will be required to provide income verification via recent pay stubs and a letter from your employer confirming your employment details such as; position, tenure, hourly wage or salary and minimum number of hours worked.
- CREDIT HISTORY Given that your established credit history in Canada may be limited, you will also need to provide either a satisfactory international credit report or demonstrate timely payments (no arrears) for the past 12 months on rental payments and one other alternative source such as utility payments. This information can also be verified via 12 months bank statements. (If you are unable to provide these two requirements, you may still be able to purchase a home with a larger down payment.)
Please let me know if I can help you on your road to Homeownership.