Hello respected contributors,

I am a new comer having landed in July 2005 along with my family. Within a month after landing, myself and my family members went back to our home country to wrap up all our personal matters outside Canada.

We now plan to get back to Canada in Aug/06 and buy a home in Canada using Mortgage facility. We have sufficient funds outside Canada to meet our expenses for atleast 9 months including mortgage downpayments greater than 35% but do not have any income in Canada, either employment or self-employment or business.

Query # 1

Although I can chip in downpayments greater than 35% for my mortgage, I believe that I may be not be deemed credit worthy by most Canadian financial instituitions since I dont have any credit history in Canada. I do use my Canadian credit card for small purchases occassionally and I ensure that I never default in my credit card dues.

Given this background, I request experienced desis or Mortgage consultants to kindly advise me on what information and documents are required in order to pre-qualify before Aug/06 so that I can quickly focus on my home-hunting and settling my kids in school.

Query # 2
Are there any costs that I would need to incur for qualifying or pre-qualifying or are these Mortgage consultants compensated by the financial instituitions directly?

Advance thanks to the contributors for any inputs on the above.

Dear Northstar_3000
As long as you can pay the 35% downpayment you won't have a problem getting a mortgage for the rest. 35% is more than enough equity to guarantee that. I was in the same situation a year ago and I did not have major issues. The only thing that I was asked for (and this might not be the case for you, depending on whom you are dealing with) is to have a balance of CAD 20k after paying the down payment. This was TD bank.

The bank will definitely charge some money for their own administrative work but I can't recall that it was a big amount. You can check with the bank how much that would be.

Hello NorthStar

As advised by Falcon, there should be no problem in getting the mortgage with 35% down. Some aggressive lenders may even lend with 25% down, but the interest rate would be slightly higher...unless you can show some source of income. Putting in more than 25% will also save you mortgage insurance fee. Going through a mortgage broker will probably offer you more options and you may same some fee etc as they are in a position to negotiate on your behalf.

The banks would require the proof of funds available before they agree to offer a mortgage. You will have to establish that the funds have not been borrowed from other resources. Also, keep in mind that any deposit of 10k or more in CASH would require proof of legitimacy of funds. Bank drafts or electronic transfers are the best modes of transfer but the availability of funds could be delayed for upto 3 weeks by some banks.

Usually you would need about 5-10k towards deposit for the purchase of a home. In some cases this amount could be higher (usually in high value properties). The deposit is made in favour of the Real Estate Broker in Trust, and not to the seller of the property The balance of down payment will be required on closing (or possession date). Offer to Purchase a home is made conditional upon mortgage approval by a bank, therefore, making your initial deposit safe and refundable. Typical closing time could be anything between 30-60 days.

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
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(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
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Thanks Falcon and Rajeev for your kind inputs.

Appreciate if anyone can guide me on:

1. The basic documents/ processes that are needed to pre-qualifying myself for a mortgage. I intend to land in Aug and ensure that I immediately get on with my home hunt without having to start the paperwork associated with the pre-qualifying process at that stage.

2. Typically, are Mortgage charges paid by the purchaser or the financial institution if the purchaser can demonstrate reasonable net worth.

Thanks!

Hi Northstar,

If you are putting down 35% as down payment from your own savings and sources then there are banks who would consider you to be a good candidate for a mortgage under their 'new immigrant' program and you would not have any trouble getting mortgage. I have helped a number of my clients in your situation in getting mortgage and moving in their own dream home.

The documents required would be as under:

1. Bank statments showing funds transferred/deposited in Canadian Bank with 3 months deposit history.

2. Your 2 pieces of identity.

3. A letter of reference from your banker in your home country stating your dealings with them as satisfactory. This letter is desirable (and not a must) as it would help strengthen your case in the absence of any credit history. Hence it is good to bring this letter when you are coming back to Canada form your home country.

4. Sale purchase agreement and MLS listing.

You would not have to pay any mortgage charges and you would get the best available rate as all my clients got in similar situation.

Should you have any more questions, you can either PM or email me.

Good Luck.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Hi Pramod,

I wish to thank you for your detailed reply which clears my mind on this issue.

I am sure that many desis who are in a similar boat like me would benefit immensely from such type of helpful comments from experienced people like you.

I also thank the owners of this site for the valuable service this forum provides to 'new-comers' surely and even to those that are 'not-so-new-comers' too!

Pramod - I shall send you a pm shortly.

Thanks once again.

Hi Northstar,
Now it became very easy to be qualified for new immigrants.First of all you don't have to put 35% towards down-payment, to buy your dream-house.
Isn't it miracle?
For more details you can contact me
416-562-7463
905-595-3988

Thanks
Sudershan