Many immigrants come to Canada with the same dreams of one day acquiring their own home in order to provide their families with more vibrant opportunities in one of the world’s leading nations in terms of education, employment, and multicultural diversity. While home ownership is the final goal, some people are hesitant to jump into a mortgage right away, thinking that the costs and down-payment could be untenable in comparison to rental fees. There are many benefits to early homeownership, but their validity depends entirely upon your unique situation.
Broadly speaking, there are two kinds of immigrants in Canada looking to own a home – those who have been in the country for a significant period of time, acquired a job, and established credit, and those who are fresh-faced newcomers to Canada. Newcomers may have good reason to pursue rental options, as banks will often demand 25-35% down payment from immigrants who are unable to provide any established Canadian credit.
For those who are already established who have been in the country for less than 36 months, a number of options exist. By pursuing CMHC or other insurers, established immigrants can take strides towards home ownership while only paying 5% down using programs such as the New-to-Canada mortgage. This money must be generated from your own sources, and you must prove that your employment wages are sufficient to service the debt of home ownership, but the notion of home ownership for only 5% down is still an incredible bargain, especially considering the financial and social benefits that home ownership grants an immigrant family:
Keeping these benefits in mind, it is clear that inquiring about early home ownership is an important step that every family should take before beginning their move to Canada, and MonsterMortgage.ca can help!BACK TO BLOG FEED