Mortgages - new immigrant
Jul 26th 2013, 1:28 pm
#16
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Mortgages - new immigrant
Not sure when you landed, but the impression I was given is that a new immigrant (with no job) is required to put a minimum of 35% down plus prove they have extra funds deposited to pay the mortgage for a specified period. In the case of Scotiabank they wanted 24months proof of funds over and above the 35% down.
Here is another link that paints a similar picture for new immigrants.
Terms and conditions may vary from financial institution to institution, but I suspect the 35% down is becoming a Canada wide finance institution requirement for new immigrants with no job.
Generally speaking, if you can show that you have been working in Canada for two years and you can afford 20% down you'll likely qualify for a “conventional” mortgage as opposed to a 'new immigrant' mortgage.
If anyone sees it differently, throw it into the pot
Here is another link that paints a similar picture for new immigrants.
Terms and conditions may vary from financial institution to institution, but I suspect the 35% down is becoming a Canada wide finance institution requirement for new immigrants with no job.
Generally speaking, if you can show that you have been working in Canada for two years and you can afford 20% down you'll likely qualify for a “conventional” mortgage as opposed to a 'new immigrant' mortgage.
If anyone sees it differently, throw it into the pot
I had only held my job for 3 months when I applied. Despite being in Canada for 10 years, I qualified for the New Immigrant scheme as I had recently separated from my husband (confirmation required) and my son had only been in Canada for less than a year.
As I mentioned earlier, CMHC have a scheme for new immigrants where you can put as little as 10% down, though my broker suggested 20% so as not to incur the CMHC insurance fees.
It really does depend on who you contact. If anyone wants the name of my broker, pm me!
Jul 26th 2013, 2:52 pm
#17
I said what ?!
Joined: Aug 2010
Location: Peterborough, Ontario.
Posts: 1,079
Re: Mortgages - new immigrant
I was working and similar to Siouxie I had to show a letter from my employer saying I'd finished my 3 months probationary period.
Jul 26th 2013, 3:08 pm
#18
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Mortgages - new immigrant
a) You have a lot of your own money invested in the house so are unlikely to walk away.
b) If you do walk away there is sufficient equity in the house for the bank to sell it quickly at a knock down price and still get enough to pay off the mortgage.
Jul 26th 2013, 3:11 pm
#19
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Mortgages - new immigrant
As for a bank requiring you to deposit 24 months repayments that is a nice little earner for them. You borrow $200,000 at 4% on the condition you lend the bank $25,000 at 0.25%. The bank is really lending you $175,000 at a very nice (for the bank) effective interest rate.
Jul 27th 2013, 9:57 am
#20
All Sooked up!
Joined: Dec 2010
Location: Sooke, BC.
Posts: 1,894
Re: Mortgages - new immigrant
35% down has been the requirement for a no-status mortgage for some time. We bought our first Canadian home with 35% deposit and no jobs. This was in 1999. I think the logic is:
a) You have a lot of your own money invested in the house so are unlikely to walk away.
b) If you do walk away there is sufficient equity in the house for the bank to sell it quickly at a knock down price and still get enough to pay off the mortgage.
a) You have a lot of your own money invested in the house so are unlikely to walk away.
b) If you do walk away there is sufficient equity in the house for the bank to sell it quickly at a knock down price and still get enough to pay off the mortgage.
People, with a job in Canada, discussing the different rates they secured, is confusing the issue methinks
Last edited by james.mc; Jul 27th 2013 at 10:00 am.
Jul 27th 2013, 12:19 pm
#21
BE user by choice
Joined: Oct 2010
Location: A Briton, married to a Canadian, now in Fredericton.
Posts: 4,854
Re: Mortgages - new immigrant
We bought our house just over a year ago, when we opened our account with TD, they were offering 'new' imigrants mortgages of bank base rate plus 1% fixed for 25 years, and you could borrow up to two thirds of the market value of your house. I think they still do.
Jul 28th 2013, 11:11 am
#22
All Sooked up!
Joined: Dec 2010
Location: Sooke, BC.
Posts: 1,894
Re: Mortgages - new immigrant
Which kind of ties in (ish) with 35% down we were required to put down as a deposit.
Jul 28th 2013, 3:52 pm
#23
BE Enthusiast
Joined: Apr 2009
Location: Ottawa
Posts: 328
Re: Mortgages - new immigrant
Thanks for the replies all. I think I'll double check with one of the other branches and see if I'm given similar info. It seems from all your replies that what is being offered to me is not the norm. I initially wanted to put down a 50% deposit but the advisor said that the better option was the 35 down with 24 mths security which I don't really agree with.
Jul 28th 2013, 8:56 pm
#24
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Mortgages - new immigrant
But the OP has at no time stated whether he has a job or not, so both apply surely?
Jul 28th 2013, 11:55 pm
#25
BE user by choice
Joined: Oct 2010
Location: A Briton, married to a Canadian, now in Fredericton.
Posts: 4,854
Re: Mortgages - new immigrant
P.S. they knew I wasn't working, as I hadn't even 'arrived' as I'd just landed.
Last edited by MillieF; Jul 28th 2013 at 11:58 pm. Reason: Need for p.s.
Jul 29th 2013, 8:42 am
#26
All Sooked up!
Joined: Dec 2010
Location: Sooke, BC.
Posts: 1,894
Re: Mortgages - new immigrant
However,
- New immigrant
- New start-right account
- Adviser told them they must put 35% down
Plus
We took out a new mortgage with Scotia in March this year.
It was 35% down. No question about that.
No job (in Canada) either.
We were required to deposit 24months mortgage payment in our account (on top of the required 35% down) however, once the mortgage was approved and funds released, we were free to use the deposited 24months payments as we wished. We bought a Jeep
It was 35% down. No question about that.
No job (in Canada) either.
We were required to deposit 24months mortgage payment in our account (on top of the required 35% down) however, once the mortgage was approved and funds released, we were free to use the deposited 24months payments as we wished. We bought a Jeep
Thanks James.
The difference in my case is that the advisor stated that this 24 month deposit would be used to pay my mortgage for the next two years. I.e I would have no further mortgage payments for two years.
When did they release the funds was is at the end of the 24 months or when you drew the mortgage down. What further proof of affordability did they ask for? I would assume that they still need comfort about how you will manage the repayments. Is this not normal.
Thanks
The difference in my case is that the advisor stated that this 24 month deposit would be used to pay my mortgage for the next two years. I.e I would have no further mortgage payments for two years.
When did they release the funds was is at the end of the 24 months or when you drew the mortgage down. What further proof of affordability did they ask for? I would assume that they still need comfort about how you will manage the repayments. Is this not normal.
Thanks
The deposit requirement alone is (to me at least) a fair indication that even if they have just started a job there is not enough proof of earnings history to warrant a lower deposit, so it's not worth debating at this juncture. Might be a different deal is say 2-3 months though, I'll give you that.
Jul 29th 2013, 8:45 am
#27
All Sooked up!
Joined: Dec 2010
Location: Sooke, BC.
Posts: 1,894
Re: Mortgages - new immigrant
Thanks James.
The difference in my case is that the advisor stated that this 24 month deposit would be used to pay my mortgage for the next two years. I.e I would have no further mortgage payments for two years.
When did they release the funds was is at the end of the 24 months or when you drew the mortgage down. What further proof of affordability did they ask for? I would assume that they still need comfort about how you will manage the repayments. Is this not normal.
Thanks
The difference in my case is that the advisor stated that this 24 month deposit would be used to pay my mortgage for the next two years. I.e I would have no further mortgage payments for two years.
When did they release the funds was is at the end of the 24 months or when you drew the mortgage down. What further proof of affordability did they ask for? I would assume that they still need comfort about how you will manage the repayments. Is this not normal.
Thanks
