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| Subject: Mortgage Information for New Immigrants |
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To All
One of my clients recently attended an educational program that informs new immigrants how to obtain a mortgage. They were satisfied not saying that the company is excellent but for some new immigrants getting a mortgage can be difficult.
Learning the in´s and out´s of obtaining a mortgage can be very difficult.
Try this company if your in the Toronto area.
Oriana Financial Group. 905-239-3485 and ask for Debra she is licensed.
I do not personally endorse this company but my client and his friend are very satisfied. They just got their house.
Roy
www.cvimmigration.com
[16-07-2008,12:38]
[**.158.61.154]
Roy |
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(in reply to: Mortgage Information for New Immigrants)
Hello Everyone... I know I am miles away from getting a house in Canada... but, it´s part of the dream...
May be we keep the topic going whith questions and answers:
Here are mine...
Do you need to make BIG, BIG bucks to be able to afford a house... I know there are areas where homes are relatively inexpensive... but do Mortgage companies ask for like 20% down all the time or downpayments vary depending on lender´s credit or finances?
I understand that we must have some credit history to prove we have good credit before getting a home loan... but how much time does it take to get a good (acceptable) credit score in Canada... ?
Are there programs for new home owners or to help people buy their first home in Canada? when I bought my first home in the US, they had a program like that in place to help people get their first home... things like 0 down payment or some other benefits that might make it easier for a family to get a home...
Thank you for replying...
[16-07-2008,15:30]
[***.229.236.216]
Lily |
(in reply to: Mortgage Information for New Immigrants)
$0 down in Canada died last week on the heels of the US subprime insanity.
5% is now the minimum downpayment. You can borrow from your RRSP for a downpayment.
house prices will be tied to location, location, location. In my part of the country, everywhere else seems cheap.
[16-07-2008,15:52]
[**.155.160.37]
Sharon |
(in reply to: Mortgage Information for New Immigrants)
When I was in Canada I used to see sometimes 0 down option. Not sure now. Though would be hard to get 0 down without a good credit (if it even exists).
[16-07-2008,15:57]
[***.254.208.246]
DC |
(in reply to: Mortgage Information for New Immigrants)
yes, 0 down was an option up until last week. That kind of mortgage required insurance. They have now raised the downpayment requirement to 5% still requiring insurance.
[16-07-2008,16:32]
[**.155.160.37]
Sharon |
(in reply to: Mortgage Information for New Immigrants)
Here in the US anything less than 20% down requires mortgage insuracne OR you have to divide the loan amount into 2 halves with a much higher APR for the 2nd loan (usually 10% of the total loan).
[16-07-2008,16:57]
[***.254.208.246]
DC |
(in reply to: Mortgage Information for New Immigrants)
This company my client found starts out with educating the consumer. I just saw that housing prices in Vancouver dropped by 40% does anyone know why.
Roy
www.cvimmigration.com
[16-07-2008,19:04]
[**.52.217.162]
Roy |
Mortgage Information for New Immigrants (in reply to: Mortgage Information for New Immigrants)
Lily,in response to your questions:
Q1. Genworth Financial Canada (GNW) has revised their eligibility requirements. Borrowers who have immigrated to Canada within the last 36 months (previously 24 months) will now be eligible for insured financing through GNW.
? The maximum Loan to Value Ratio (LVR) for a GNW insured mortgage under this program has increased to 97%. Please note: This will be changing effective Oct 15/08 to 95% LTV maximum.
? Documentation requirements for insured mortgages have been revised.
One of the following documents will now be required as a personal reference, in addition to verification of landed immigrant status:
For GNW insured Applications with LVRs up to 90%:
o Canadian credit history with a minimum Beacon score of 650 (No Score or No Hit not acceptable), or;
o Letter of reference from a recognized financial institution, or;
o 6 months of bank statements from a primary bank account.
If none of the above are available:
o U.S. or International Credit Bureau demonstrating no derogatory credit history. If you are immigrating to Canada you should bring your credit report, if possible.
For all Canada Mortgage and Housing Corporation (CMHC) insured applications and for GNW insured applications with LVRs from 90.01% -95%:
o Canadian credit history with a minimum Beacon score of 650 (No Score or No Hit not acceptable), or
o Two alternate sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternate sources are:
1. Rental payment history confirmed via letter from landlord and supporting bank statements, and;
2. One other alternative source. Acceptable sources include hydro or other utilities, telephone, or cable. To be confirmed via a letter from the service provider or 12 months billing statements.
If none of the above are available:
o U.S. or International Credit Bureau demonstrating no derogatory credit history.
I know this may seem complicated but that is where a mortgage agent, like myself, can help you prepare to buy a home.
Q.2 YOu can start to build Canadian credit history by applying for a secure Visa or Mastercard. Depending on the financial institution, you can deposit say $1000 into a term deposit for three years and they will issue you a credit card. It´s important to make regular payment, of course, and after a year you should have a good credit history. That does not mean that you can not apply for a mortgage before then. The more you have for downpayment, the sooner you can purchase a home.
Q3. The government allows first time homebuyers to withdraw from their Registered Retirement Savings Plan (RRSP) tax free to a maximum of $20,000. This has to be repaid into the registered retirement savings plan two years after purchasing a home. You have fifteen years to repay. The initial contribution to the RRSP can help reduced your taxable income. The deposit must be in your account for at least 90 days before you can withdraw it to purchase a home.
Are you living in Canada or immigrating here soon?
I have prepared a guidebook for new immigrants, if you are interested. My email is www.yourmortgagesource.ca.
Deborah
[16-07-2008,20:38]
[**.242.239.243]
Deborah |
(in reply to: Mortgage Information for New Immigrants)
who knew we had an expert in our midst. Deborah... this is fabulous. thank you
[16-07-2008,22:39]
[**.155.160.37]
Sharon |
(in reply to: Mortgage Information for New Immigrants)
Roy, your info is incorrect. Prices are holding but sales are down 40% from this time last year. That is a very GOOD thing. this time a year ago houses were selling with multiple offers over asking price. People did not even have time to think through their decisions.
prices are softening and with the changes in the CMHC rules, there may be some additional downward pressure but again, most people think it is sanity returning to the market rather than a tank.
[16-07-2008,22:45]
[**.155.160.37]
Sharon |
(in reply to: Mortgage Information for New Immigrants)
Great information Deborah...
I am hoping to move to Canada but do not know yet the outcome of my application process... I hope to hear from CIC soon :O)
I will keep your email for future reference...
Thanks a lot!
[17-07-2008,04:51]
[***.229.236.245]
Lily |
