Mortgages

[tony74]

3rd January 2008 08:16

Does anyone know much about getting a Mortagage to buy a home.
I was thinking that banks would not really entertain us until we have PR Status and built up a credit rating. Is this the case?

[Bleech]

3rd January 2008 14:59

When we got here we went to the high street banks, as you do. Managed to get a mortgage after being here for a week with a 30% deposit. This was a bit unexpected as we wanted to rent for 6 months first but couldnt find anywhere, so had to sell out UK house blah blah. But it really wasnt a problem at all. Put an offer in on a house and got the mortgage sorted and moved in within a week!
If I was going to do it again I'd go to a mortgage advisor.

[MarkW]

3rd January 2008 15:01


Say no more !

[tracie107]

3rd January 2008 15:18

Hi,

We have been liaising with a mortgage broker and this is what he replied yesterday:-

"We can make the downpayment as little as 5% with the right letter and visa documentation. We do not need to have permanent residence status right away nor do we need established Canadian credit history".

Not sure what one needs to do to put down only 5% as most people I have spoken to have put down 30-35%.

[MarkW]

3rd January 2008 15:27


We moved here in March and bought a property in September with only 5% deposit. It can be done dependant upon your circumstances ! i.e job situation, outstanding debt etc

[Betalil]

3rd January 2008 16:17

On a mortgage with less than 25% down, you would need to buy the CMHC mortgage insurance (for sub-prime mortgages). When you put down at least 25% then you don't need to buy the insurance. (The CMHC insurance protects the lender from default - not you). The more you put down the lower the risk you become. You can also negotiate with your banker (and his competition) to get the best interest rate, with the best terms (ie: open/closed, penalty clauses, portability etc). Mortgage brokers can be a good resource too, particularly for someone without the Canadian credit history. Do your research, and don't just take the first offer as being the only one. Never make an offer on a property without the condition "subject to financing", because as you have all learned, once the subjects are removed (satisfied) the buy/sell contract becomes bound in law, and you nor the seller can backout without severe penalty.

Hope this helps some. Good luck.

[tony74]

4th January 2008 10:45

Thanks guys. This is really helpful advise.

[MarkW]

4th January 2008 12:11


The CHMC Insurance that Betalil is referring to is similar to what most mortgage lenders used to charge in the U.K . It used to be known as mortgage indemnity or mortgage guarantee charge , although nowadays the majority(if any) of U.K lenders do not charge this fee to the borrower, although this is still charged in Canada ! Having said that it can be added on to the mortgage and included within your monthly payments so it doesnt stop you getting a mortgage at 95% it just means that it will cost you a little more per month !

[Betalil]

5th January 2008 09:41

And you only need 20% now, it changed from 25%.

[Colsgirl]

6th January 2008 18:07

We used a mortgage broker and there is a welcome to Canada package available to thse who have just landed and have no credit rating. All you need is a print out of your credit report from the UK. As the broker said to us, you will never get a mortgage approved so quickly and easily again. from applying to being approved was about 2 hours which is quick considering it was processed in Ontario!