New Immigrant to Canada Call your Vancouver BC Mortgage Broker.
The Mortgage Group Canada Inc.

Non-Residents or New Immigrant to Canada

A Non Resident or New Immigrant to Canada is a person living outside of Canada, this even applies to Canadian citizens who have been living abroad, do not earn income in Canada or, do not pay income taxes in Canada.  If you are in this situation, you likely need the assistance of a Mortgage Broker to help get you the financing you need. 

If you are a Non-Resident, the financial institutions see you as a greater risk.  Accordingly, few lending institutions will lend to you and then even then will lend only as high as 65% at their best rates.  If you are a non-resident of Canada and not in Canada on an work permit but wish to obtain a higher loan to value ratio this will require finding private financing and the interest rate charged will higher than the discounted rates available at the major lending institutions.  However, each lender will examine the mortgage application on a case by case basis.  A banker's letter of reference provided by an applicant's previous bank or a credit report from the applicant’s country of origin may influence a lending institution with respect to both the approval of the mortgage application and the interest rate charged.

Typically for Non-Resident mortgage applications, the economic rent, as indicated in the appraisal which must be done as part of the financing requirements, must be sufficient to cover the costs of financing the mortgage (i.e. the monthly mortgage payments). 

Work Permit for Non Residents or New Immigrants to Canada

Those persons who would otherwise be considered Non-Residents but who are working in Canada based on having a valid Canadian work permit are eligible for financing not otherwise available to them.   In fact, some lending institutions will lend up to 95% of the purchase price (or value of the property) to an applicant who has a valid work permit and is working in Canada, if the mortgage is insured.  Mortgage Insurer guidelines for granting mortgage insurance to persons with a valid work permit restrict financing to purchases only, not refinancing.  Secondly, the mortgage must be amortized; a secured line of credit is not available.  Lastly, the property purchased must be only one unit and owner occupied.

Up Front Requirements for Non Residents or New Immigrant to Canada Applications

Applicants must have verifiable Canadian generated income, a down-payment showing a three month history of these monies, and a satisfactory credit rating in Canada or an acceptable credit history from their home country to meet the approval of both the lender and the insurer.
All borrowers must, prior to obtaining the financing, must present themselves to a bank in Canada with at least two pieces of identification, and open a bank account.

 

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  What is a New Immigrant or Non-resident Mortgage in Canada & how do I apply?

  ANew Immigrant Mortgage is a home mortgage provided to a newly landed immigrant in Canada. Canadian banks can provide mortgage financing to new immigrants at 65% to 70%of the purchase price of a residential property. For multi-million dollar homes, mortgage financing may be adjusted and required approval from the bank’s higher management.

  Non-residents buying in Vancouver BC Canada are eligible if the applicant is:

• • Considered an acceptable credit risk
  • Has a bankers recommendation from country of origin or
  • Has confirmation of income
  • Proof of down payment

  Program Offerings Non-Residents

  
  Non-Residents may be eligible to borrow up to 75% of the property value. (Lending guild lines are mostly equity based) Call your BC Mortgage Broker to discuss this option.
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  Each lender has different requirements, applying for the mortgage first is the best option.

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  Eligible applicants must:

  • Have recently immigrated or relocated to Canada within the last 24 months
  • Show a minimum of 3 months full time employment in Canada (borrowers being transferred through a corporate relocation program are exempt from this requirement)
  • Must have a valid work visa or obtain landed immigrant status
  • Must have full disclosure of all financial obligations inside and outside of Canada
  • Letter of reference from a recognized financial institution and or an international credit report demonstrating a strong credit profile
  • Proof of down payment
  • Have established credit for a minimum of 12 months
  • Proof of down payment
  • Full financial disclosure
  • Letter of reference from recognized bank

   

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