Welcome to Canada!
We at GTA BEST MORTGAGE are very pleased to help you in your quest to buy a home in Canada, your new home. We understand your feelings of both excitement and anxiousness. Our team of specialists will do our utmost best to help answer the many questions you’ll have with regard to mortgages in Canada and it would be our pleasure to help you, especially with the different terms and options.
Just because you are a new immigrant doesn’t mean that you have to wait to purchase a home. You may be surprised to learn that in most cases your recent arrival will not affect you negatively, and that you can borrow and be approved for mortgages at the same rates like everyone else.
Canadian regulations require you to put down minimum 5% of the purchase price as a down payment as long as you have either a work visa or permanent resident status – this is known as a default insured mortgage and requires approval by both a mortgage lender and a default insurance company e.g; Genworth, CMHC or Canada Guaranty. If you have a down payment of 20% or more of the purchase price, you will qualify for a conventional mortgage and will not require mortgage default insurance.
The amortization period is the length of time it’ll take for you to pay off your mortgage in full. The maximum amortization period for a mortgage with less than 20% down payment is 25 years but for conventional mortgages with a downpayment of more than 20% can go as high as 35 years. A longer amortization period will reduce your monthly mortgage payments by spreading them over a longer time frame giving you the lowest possible monthly payment, but keep in mind it will result in more interest paid over the span of the mortgage.
The mortgage term is a period of time you commit to the contractual provisions and a mortgage rate with your lender. Term lengths can go between 6 months to 10 years, with 5 years is the most common. When your term expires, you’ll need to negotiate a new term with new conditions and a new mortgage rate.
Interest Rate Type
The final and most important decision you will need to make is the type of mortgage rate you want. Mortgage rates can be either fixed, at a constant rate of interest over the mortgage term, or variable, fluctuating with the Prime rate. This is a personal decision based on your individual tolerance for risk and expectations of future interest rate increases or decreases.
How a Mortgage Agent can help you?
Keep in mind that you’re only considered ‘new’ for thirty-six months after arriving. Any extra flexibility afforded to new immigrants goes away after three years.
Because of our knowledge, expertise and vast experience with mortgages, We at GTA BEST MORTGAGE can help you obtain the best possible discounted rates and save you thousands of dollars…. better in YOUR pocket than someone else’s! Our specialists negotiate with many lenders on your behalf and ensure that they compete for your mortgage business. This is not obligatory and won’t cost you anything as the lender compensates us for providing them with this opportunity. Our specialists will also guide you through the mortgage process.
Credit History is another important step, and applying for a credit card or secure loan is an efficient way to start this process. If you’re having trouble with traditional creditors, consider a secured credit card. These are easier to get and here’s how they work: if you get approved for a $500 limit on a secured card, deposit with this the creditor $500 upfront as a security deposit, thus after demonstrating a period of successful repayment (which is usually 1/2 years), you get that money sent back to you.
Lenders also recognize that it can very be difficult to establish Canadian credit, so they will consider credit history from alternative sources, such as a landlord’s letter showing twelve months of on-time payments, or copies of utility bills that show regular payments being made for at least a year.
Look over the 10 Steps from the guide. As you can see the first step is to provide you with all your options and a pre-approval certificate so you can go house hunting with confidence as soon as possible.
We at GTA BEST MORTGAGE will walk you through each step at a pace in which you are comfortable with, answering any question you have and making sure you understand all the information before proceeding to the next steps.
We will also provide you with options and choices to make it easier for you to make the perfect mortgage decision for you and your new life in Canada.