Welcome, and congratulations on your decision to purchase
Real Estate in Canada.
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 75% of the Purchase Price or
Value* of the Property are required to be insured for the protection of the Lending
Institution. Currently there are only two Insurance Companies in Canada are their
premiums as well as lending criteria’s are comparable. With the approval
from either CMHC or GE Capital* (Mortgage Insurers) most lending institutions
will provide up to 90%, or even 95% of the Purchaser Price / Value* of the Property.
Applicants must have verifiable Canadian generated
income, down-payment, and a satisfactory credit rating to meet the approval of
both the Lender and the Insurer.
Alternatively if you are putting 30% to 35% towards
the purchase as your down-payment, then some lending institutions may wave the
requirement to confirm employment or income.
Work Permit:
Maximum Financing for applicants residing in Canada with a valid Work Permit are
likely to be up to 75% of the Purchase Price / Value*. Satisfactory income and
credit confirmation must be available and meet with debt servicing requirements
of the Lending Institution.
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 65% and as high
as 75% of the purchase price / value*.
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 and country of origin may influence a Lending Institution
in their approval and /or discounting process.
