WELCOME TO CANADA

Welcome To Canada: What Should You Know

Congratulations! You have taken a big step. Moving to a new country takes courage. It also creates exciting opportunities and new beginnings. Taking the time to learn what to expect-and what is expected of you-will help
you succeed.

Facilitating Housing Choice for Newcomers to Canada

Newcomers to Canada play an increasing role in Canada’s future population growth, creating new market opportunities. Insured financing is available to borrowers with permanent and non-permanent residence status, helping newcomers to realize their dream of homeownership in Canada.

Features

Acceptable loan purpose

  • Purchase transactions

Loan-to-value ratio limits

  • Maximum LTV ratio - 95.00%

Max Loan Amounts

  • No Maximum Loan Amount

Eligible properties

  • Maximum two units where at least one unit must be occupied as the principal residence
  • New construction or existing properties

Terms/qualifying interest rates

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
  • For terms less than 3 years, the qualifying interest rate is the greater of three-year posted rate or contract rate; for terms of three years or more, the contract rate is used

Amortization options:

  • LTV > 80%: Up to 35 years
  • LTV ≤ 80%: Up to 35 years

Premium Rates

LTV ratioPremium rate*
Up to 65% 0.50 %
65.01% - 75% 0.65 %
75.01% - 80% 1.00 %
80.01% - 85% 1.75 %
85.01% - 90% 2.00 %
90.01% - 95% 2.75 %
Premium is non-refundable.
* a .20% premium surcharge will be applied to the above premium rates for every 5 years of amortization beyond the traditional 25-year mortgage amortization period

Borrower qualification

  • 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
  • Must have a valid work permit or obtained landed immigrant status
  • For 95% LTV, down payment must be from own resources. For LTV's less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy.
  • All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
  • GDS/TDS Guidelines:

    Credit Score

    GDS

    TDS

    <680

    35%

    42%
    680+ No limit 44%

Documentation Requirements (To be kept on file by lender)

LTV

Documentation requirements*

All LTV's
  • Valid work permit or verification of landed immigrant status
  • Income Confirmation
  • Down payment confirmation
  • Purchase and Sale agreement

Up to 90%
  • Letter of reference from a recognized financial institution
    OR
    Six (6) months of bank statements from primary account

90.01 - 95%
  • International credit report demonstrating a strong credit profile
    OR
    Two (2) alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternative sources required are:
    • Rental payment history confirmed via letter from landlord and bank statements **
    • One other alternative source (hydro/utilities, telephone, cable) to be confirmed via letter from the service provider or 12 months billing statements

    NOTE: Alternative sources of credit must be obtained from a Canadian source.

* Insurer will no longer require the lender to submit the documentation upfront on every file, but may request that the lender provide a copy on a case-by-case basis.

** Letter from landlord must indicate the following: name of tenant, monthly rent, length of tenancy, payment history. Bank statements must support the amount of rent and timeliness of payments outlined in the letter.

 

 

 

 


www.mymortgage.ca

PHONE: 1.866.509.1090
FAX: 1.866.392.3672

Head Office
Unit 207, 4603 Varsity Drive NW

Calgary, AB. T3A 2V7

Canadian
Mortgage Rates

Term Rate (%)


as of Feb 23, 2012

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