New to Canada? Get Your Mortgage Advice Here!
With Canada being one of the most popular worldwide destinations for the young and the ambitious, thousands of immigrants are settling in Canada every year and it becomes inevitable to blend into the new sociocultural atmosphere and start building the life you had always dreamed of.
We all know purchasing a Home is no easy task, more so if it’s in a new country altogether. We give you some tips about purchasing a home in Canada to help make the process simple and straight-forward:
- Work on Credit History:
Your credit history can determine whether or not you can get a mortgage. It’s imperative to create a credit report; Canadian lenders will inspect your credit standing on applying for a new mortgage. If you have already established credit in another country, ensure its accessibility to Canadian banks. If not, you will be required to restart procedure and start developing your credit score.
If you don’t already have credit history, start building one. A good credit history serves as an incentive. Some of the ways of building a credit record include opening a bank account in Canada and using it regularly, applying for credit cards, timely payment of bills etc. Bills can have a vast extent, ranging from rent and utilities to credit cards to car loans.
- Prepare Documentation:
You may not need all your personal financial documents at the beginning of your mortgage hunt, but it’s better to have it in place right from the outset. Documentation entails bank account statements, residency and immigration status and other forms of identification such as work permits, visas, birth certificates etc. In case you are asked to provide a bank reference letter, make contact with your overseas bank for the same.
- Gather Proof of Income:
A proof of income establishes your credibility in the eyes of a potential lender. Retain all pay slips, income tax documents and appointment letters to serve as legitimate proof.
Job stability is another undeniable factor that helps approvals for mortgages to newcomers in the country. Therefore, avoid changing jobs frequently; this instability may reflect on your solvency image. Project a steady income and reduce your chances of being rejected.
- Set a Budget:
Home prices will differ according to the province you are settling in. Homes in some regions are sold at reasonable prices while others have exorbitant rates. Prepare your personal budget taking into consideration your financial standing. This will ensure successful purchases when you do make them.
Pre-approval refers to the process wherein a banker or mortgage broker provides information regarding precisely how much of a mortgage you are eligible for. Its best to be pre-approved and all it requires is a short application to the above mentioned officers. These loan officers will assess mortgage payments, interest rate and closing costs with you in advance. This will help you understand your range of expenditure and will make your search for a new home that much more efficient.
- Use a Mortgage Broker:
Mortgage brokers can provide correct guidance as well as reduce some of the stress by predicting risks. Instead of relying on family and friends, consult mortgage experts who are experienced in the field and have better resources at hand.
We at Brevity Mortgages help you find your dream home at attractive interest rates. Contact us for more information.