July 17, 2018

New To Canada Mortgage Rules

I have had a number of enquires recently on whether the New To Canada Program requirements have changed.  Individuals that have immigrated or relocated to Canada within the last 5 years can purchase a property with as little as 5% down payment.  Here is the criteria in order to qualify for a mortgage:

  1. Purchase price must be less than $1,000,000
  2. Under $500,000 you can purchase with 5% down payment
  3. If the property is between $500,000 and under $1,000,000, you can purchase with 5% on the first $500,000 and 10% on the portion over $500,000
  4. Maximum 2 units with 1 unit being owner occupied
  5. Maximum 25 year amortization
  6. Minimum 3 months full time employment in Canada (transfers under a corporate relocation program are exempt)
  7. Strong international credit report and/or 2 alternative sources ie rental payment history or hydro/utilities etc
  8. 5% of down payment must come from own resources and not a gifted down payment
  9. Must have immigrated to Canada within the last 5 years
  10. Must have a valid work permit or obtained landed immigrant status
  11. No Guarantors permitted
  12. Foreign Diplomats who do not pay tax in Canada are ineligible for this program
  13. This program is not available for Business For Self Alternative financing or Investment Properties

If you would like further information, please call me directly!

Colleen Saunders is a 25 year veteran in the mortgage industry serving Oakville, Burlington, Mississauga and Toronto and offering all mortgage related services such as 1st & 2nd mortgages, private mortgages and more.

To contact Colleen, please fill out the form on  www.mortgagesbycolleen.ca  or call 416-459-2406