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[GUEST POST] Mortgages for new comers

[GUEST POST] Mortgages for new comers

The following is a guest post by Christopher Molder – A Specialist Mortgage Broker based out of Toronto – for more information on Chris Molder, and his brokerage please visit:

Mississauga is an especially popular city for new Canadians to put down their roots. And if you are like most newcomers to Canada buying a home will be a top priority for you and your family. Owning a home in a great Mississauga neighborhood not only gives you a place to live and protect your family but it also helps establish yourself for your new life in Canada.

Purchasing a home in a vibrant and growing market like Mississauga is a good place to invest in your family’s financial future. In Canada real estate is considered an asset and is a good store of value and historically has proven to appreciate in value over time.

Because real estate values in Canada are so high the majority of Canadians and especially first-time buyers need to borrow from banks and lenders in order to have enough money to purchase a home.

As a newcomer to Canada you might not be aware that banks and lenders have created specialized lending programs to help new Canadians realize their dream of home ownership. There are a number of programs available from lenders in order to help you finance the purchase of your home.

Let’s have a look and see which program suits you best:

The New To Canada Program

If you have have immigrated or relocated to Canada within the last 5 years you might be eligible under the New To Canada program to buy a property with as little as 5% down payment.

There are a number of borrower qualifications which I list below. This is the plan for you if you have been living in Canada for 5 years or less and have full time employment.

Borrower Qualifications:

  • Must have immigrated to Canada within the last 60 months (5 years)
  • 3 months minimum full time employment in Canada (borrowers being transferred through a corporate relocation program are exempt)
  • Must have a valid work permit or obtained landed immigrant status
  • At least 5% of the down payment must be from your own resources. The remainder may be from a gift from an immediate family member.
  • All debts held outside of the country must be included in the application.

The key to this program though is that you have to show the lender that you have full employment in Canada.

But what if you live abroad or earn your income from outside of Canada? Can you still obtain a mortgage?


The short answer is yes but only through a very limited number of lenders who have specialized unique Non-Resident qualification programs.

If you are a non-resident coming from the U.S. your down payment must be at least 35%. However, if you are purchasing from any other part of the world then your down payment must be 50%. The key in successfully getting this financing is making sure that the down payments funds are from your own sources and that the property being purchased is for personal use. This program is designed for parents wanting to buy a residence for their children studying in Canada or family living in Canada while spouse works abroad and earns income abroad.

Note if you are looking to buy a home for investment purposes or as a rental then you will have to purchase it with 100% cash. There are no lending programs available for foreign purchasers in Canada looking to buy a rental property.

How do you apply for these mortgages?

Not every lender can lend under the New To Canada or Non-Resident program. A knowledgeable and professional mortgage broker should be able to provide you with your various options and lenders. A mortgage broker is able to able shop the entire market to not only find you the appropriate lender but also competitive low interest rates. One of the major advantages to working with a good mortgage broker versus the bank is that the broker is not a bank employee and should be able to provide you with honest impartial advice. You might be surprised to learn that there is no fee or cost to work with a mortgage broker.

About Chris Molder
A mortgage broker with finance in his blood. Chris is a 2nd generation mortgage broker who runs his family’s mortgage brokerage. He loves working with his Mississauga clients to de-mystify mortgages and turn the tables on the lender. It’s easy to get into a mortgage. But hard to get out of one. Chris’ focus is on helping clients get out with minimum time and interest cost. To find out more about Chris Molder and his mortgage brokerage, please visit:

About Amit Bhandari

In 1982 a couple had a child that was kept in hospital until he was given the all-clear to go home. As soon as it was given, these parents promptly escaped from a maximum security hospital to the Nottingham (England) underground. Today, Amit is wanted for his expertise in real estate within top school boundaries. Suffering through a recession 2008, Amit survives as a Realtor of fortune. If you have a problem, and if no one else can help, maybe you can hire Amit Bhandari.

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