Can newcomers to Canada buy houses?

There are a number of options for newcomers to obtain finance to purchase a home in Canada, with some banks having developed programmes that are tailored specifically for immigrants. The process of buying  a house can start much quicker than many newcomers realise and doesn't necessarily require you to build a cedit rating in Canada in advance of the purchase, however, you will require a credit reference from your country of origin. You may not qualify for a mortgage while you're on probation with your new employer, so advise the bank of when your probation period ends.

You can put down as little as 5% of the purchase price of the house, depending on your situation. In Canada, the bank will require that your mortgage is insured against default if you put down less than 20% of the purchase price. If you fail to make your mortgage repayments, the insurance protects the bank. There are a number of companies providing this insurance, CMHC being one example. If you can demonstrate that you had good credit in your country of origin or that you have a good credit rating in Canada you should quality for the same rates a Canadian with good credit would receive.

As with any mortgage application, it will be necessary to discuss your individual circumstances with the bank before any decision can be made. However, many others have successfully taken this step before you.

Several banks also have programmes in place to assist immigrants with the purchase of vehicles, so your move to Canada needn't be as stressful as you may think!