Designed to aid those who have recently become residents of Canada via relocation or immigration, qualified homebuyers are eligible to purchase a property for a down payment as low as 5% thanks to Genworth’s New to Canada Program.
The program is designed to help new residents settle down sooner and more seamlessly. It provides loan-to-value (LTV) ratios as high as 95% for those who qualify. An LTV this high is best suited for first-time homebuyers who cannot afford to pay much upfront for a new home.
How Do I Qualify for a New to Canada Mortgage?
First, you’ll need to provide proof that you’ve been a full-time employee in Canada for three months or longer. The down payment, which is around 5%, must come from your savings.
However, a down payment can also be gifted to you from a family member. Employers are also able to subsidize down payments for their employees as part of relocation agreements.
When you apply for this mortgage type, you must provide documentation of money still owed on things such as:
- Credit cards
- Existing mortgage
You are also required to provide the following:
- Purchase and Sale Agreement – Prospective homebuyers must provide this to verify the value and location of the home you wish to buy
- Proof of Employment – This is a letter of employment provided by your employer that delineates your income and employment status
- Proof of Down Payment – To prove your ability to provide the necessary down payment, you’ll need a statement from your bank or investment company showing that you can afford to pay the 5% minimum of the purchase price.
What Type of Property am I Eligible to Buy?
The New to Canada Program focuses on helping single families. The home you choose cannot exceed two units, and you must reside in one of the two.
An approved New Home Warranty Program must cover the home.
Prospective homebuyers can also buy existing homes, provided the home is located in a residential area showing a stable history of sales and purchases.
What are the Benefits of a New to Canada Mortgage?
Several benefits accompany this program. Here are a few of the most prominent:
- Competitive Interest Rates – CMHC insured financing ensures more competitive rates across the board.
- General Availability – The program is available from coast to coast, and there are no set maximum loan amounts.
- No Minimum Required Period of Residency – Even if you’ve just relocated, you can still qualify
- CMHC and Genworth Insured Financing – Protects newcomers with non-permanent resident status up to 90% LTV on 1-unit, owner-occupied residential properties.
- No Fees Based on Residency Status – Newcomers are not subject to additional fees or premiums.
- Access to CMHC and Genworth Mortgage Loan Insurance Products – All newcomers with permanent resident status can access these products.
Is the New to Canada Mortgage Right for Me?
If you’ve recently moved to Canada and find that your relocation costs have left your savings accounts looking thin, this is a fantastic option to help you become economically established.
The New to Canada mortgage provides fixed, adjustable, and variable rates. In some cases, if you’ve relocated as a result of a new job opportunity, your employer can subsidize your down payment, making the process easier and more affordable for you.
There are no minimum income or residency requirements, and the program is available from coast to coast, making it a viable and affordable option for the majority of newcomers to Canada.
If the New to Canada program seems like a good fit for you, speak to your trusted mortgage professional today for more information.