The supporting documentation needed to get a mortgage, the down payment required, and the applicable interest rate for New to Canada Mortgages is dependent on permanent residency status. If you are a permanent resident (or you have a work permit and you have submitted an application for permanent resident) and you have a good credit rating, you can pay as little as 5% interest rate which is the typical mortgage rate.
If you are not a permanent resident, the down payment is 10%. If you do not meet this and other qualification criteria, you can still get mortgage default insurance through a New to Canada Program by the CMHC (Canada Mortgage and Housing Corporation), Canada Guaranty, or Genworth Financial.
A lender wants to determine if you are capable of making monthly repayments. We will help you gather and organize this information to streamline the application process and to win the confidence of potential lenders. We will advise you on the intricacies of Canadian mortgages. As an example, you should note that if you can afford 20% of the purchase price in down payment, yours will not be a high-ratio mortgage and you will not need mortgage default insurance, which reduces your monthly premiums. We will also advise you on how to save for the down payment, how to complete the mortgage pre-approval, and even refer you to a good realtor to help you find a home if you haven’t already. If your credit score is very poor, you may fail to get a mortgage from a mainstream lender (a bank or a credit union). In such a case, you need not worry because we have a good working relationship with private mortgage lenders. Although their rates are higher (since they are assuming a greater risk), we will negotiate on your behalf to bring the rates as low as possible. Whoever the lender is, we will negotiate for the reduction and even removal of different fees