 Since the process of obtaining financing in Canada is likely to be new to you, we are looking to provide you with some of the general principles in this section of our website.
Depending on your status upon your arrival you are likely to find one of the next three categories of interest.
Landed Immigrant Status:
As a landed immigrant most of the financing opportunities as well as “best” mortgage rates available to Canadian Citizens are also applicable.
Any mortgages exceeding 80% of the purchase price or value* of the property are required to be insured for the protection of the lending institution. With the approval from a mortgage insurer, most lenders will provide up to 90% or possibly 95% of the purchase price/value of the property. An insurance premium is charged by the insurer and this premium is added to yur mortgage.
Applicants must have verifiable Canadian generated income, verifiable down payment, and a satisfactory credit rating to meet the approval of both the lender and the insurer.
Alternatively if you are putting 35% or more cash down towards the purchase as your down payment, then some lending institutions may waive the requirement to confirm employment or income.
Work Permit:
Financing for applicants residing in Canada with a valid work permit is available,dependant on the length of the permit and up to 95% financing is available.
Non-Residents:
Depending on whether the purchase of the property is for investment or recreational purposes, the maximum financing amount is likely to rage from 50 to 80% dependant on the amount of informaton ha is available and can be verified along with the type/location of the property..
Lending institutions are often not as aggressive with discounting their mortgage rates, but will base their decision on an individual basis.
A banker’s letter of reference provided by an applicants previous bank can be very helpful in this process if available at the beginning of the process.
The above stated information is for reference purposes only. For more specific questions or to begin the approval process, please contact one of our brokers who will be pleased to assist you.
Please refer to “Why use the services of a Mortgage Broker” and “Closing Cost Estimates” in our website index for additional information.
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