How to Get a Mortgage as a New Immigrant to Canada
Welcome to Canada! If you are a new immigrant you may face the need to buy a home for your family sooner or later, and in Canada, getting a mortgage is the first step to purchasing a home. A newcomer is defined as an individual who has immigrated to the country within the past 5 years. This individual must be already a Permanent Resident or someone who has received confirmation of Permanent Residence from Immigration, Refugees, and Citizenship Canada (IRCC). Getting a mortgage helps you settle down faster. Buying a home can be a mammoth task, especially if you do not know what to do or how to proceed. Drop the worries as we have your back. Following are few tips that shall bring you a step closer to buying your first home in Canada:
Have a checklist in place: You need to go through a checklist for you to tick all boxes towards getting a mortgage successfully. Firstly, you must have an idea of your budget. This helps you know the price range in which you can buy a home and also live comfortably i.e tend to your other needs. You can use a mortgage payment calculator to get an idea about how much monthly payment you will be making.
Down payments: Homes don't come cheap in Canada so the full price of the property is almost never paid at once. Hence, a down payment needs to be made for which you must have enough savings to pay a big sum in one go.
Mortgage options: There are also a lot of mortgage options for you to explore while buying a home in Canada. Fixed rates, variable rates, first mortgages, conventional mortgages, private mortgages are just some of the options. Besides, there are mortgage solutions devised especially for the ease of newcomers. A mortgage broker can advise you on which of these suits your needs the best.
Get a mortgage pre-approval: Once you have made up your mind to buy a home, you would need a mortgage pre-approval. A pre-approved mortgage indicates the lender's commitment to extend the loan to you.
Hire a real estate agent: A Real estate agent helps you find the right home and plays a big role in the process of getting your mortgage. Make sure you engage a local real estate agent for a smooth experience.
Look for your ideal home: You would need to look for the home of your dreams. You would need to see its viability i.e. distance from home to work, and the kids' schools, amenities nearby, etc. You also need to ensure that this home fits your budget.
Engage a mortgage broker: A mortgage broker helps you get the best deal for your money. Of Course, they charge a fee to help you.
If you are new to Canada and are looking to buy your very first home, look no further. Contact LendX and we shall be happy to help.