What you need to know when buying a home in Canada. Here are some facts you need to know for qualifying to borrow:
- You must have immigrated or relocated to Canada within the last 36 months for the New to Canada Program.
- You must have 3 months minimum of full-time employment in Canada (transfers under a corporate relocation program are exempt).
- You must have a valid work permit or have obtained landed immigrant status.
- For 5% down payment the funds must be from your own resources. For down payments above 5%, the remainder may be gifted from an immediate family member of a corporate subsidy.
- All debts held outside of the country must be included in the total debt service ration (rental income earned outside of Canada excuded from GDS/TDS calculation)
- GDSTDS Guidelines:
What you need to know about your Credit Score:
- All banks and most credit card companies, including department stores, report to Equifax Canada (the credit reporting agency used by most lenders) and TransUnion Canada
- Establish a credit report by applying and getting approved for a credit card, loan or line of credit. If you’re having trouble getting approved, some lenders offer a “secured” credit card, where they keep a deposit on hand about equal to your credit card limit, and give you a credit card
- Your credit score from another country will be taken into consideration in Canada
- It’s important to supply paperwork showing that you are a responsible borrower
- If you can’t supply an International Credit Report, lenders will accept other forms of confirmation such as a mortgage/rent payments, utilities, cable, insurance premiums and/or childcare for the previous 12 months
- A letter of recommendation from your current financial institution would also be helpful
These are the beginning stages of the New to Canada homebuyer’s information package. Click New to Canada for the full download.
