Yes, this is the best scenario. Permanent residents with a good credit score and sufficient cash for a 5% down payment will be treated just the same as a Canadian citizen by a financial institution or lender and have an easy time securing a mortgage.
Without permanent resident status, mortgage lenders might require a larger down payment to approve mortgage loans, generally 10% of the purchase price. If you have a valid work permit, and have applied with the Government of Canada for permanent residence status, approval for a mortgage with as little as 5% of the purchase price as down payment is possible.
Sometimes people will supply a letter of credit from their existing bank in their home country, or an international credit report, to be considered for a mortgage approval. There are other ways to confirm credit history from non-traditional sources, such as:
There are other tasks you can complete to confirm your credit worthiness and help qualify for mortgage programs, such as:
Yes, the mortgage rates and terms offered by lenders are the same for newcomers to Canada as for Canadian citizens.
Yes, remember that if you have a minimum of 20% of the home’s purchase price available for a down payment, you only are approved by the lender, and CMHC mortgage default insurance is not required. Without the requirement for mortgage loan insurance, you can significantly reduce yourr total cost of borrowing.
Our team is devoted to helping you achieve your long term goals. Enjoy options and possibilities that you may not have considered when sticking with traditional banking products. If your goals include paying down your mortgage faster or looking for a rental income to make some headway on your amortization we are happy to discuss all of your options. Your Kelowna Mortgage Broker is able to help you with your first mortgage or renegotiating the terms on an existing property. Call John Antle Mortgages in Kelowna today and let’s get started!