Financial hurdles for new Canadians
Canada, 29th March: Majority of immigrants in Canada face numerous obstacles in the way of getting finance for buying property in Canada.
This is despite the fact that roles of immigrants in Canada housing market is of great significance for the last several years.
Let’s see some common financial hurdles of new Canadians—Following are listed some of the most common problems faced by new Canadians wanting to buy a house in Canada—
• No credit history—One of the major predicament of new Canadians wanting to buy residential property in Canada is lack of credit history. And since mortgage financing is almost impossible if immigrants don’t have a financial history, so, the dream of buying a home in Canada fails to realize for newcomers. Whenever new Canadians approach financial institutes, they are asked to show their credit history. So, it is advisable for newcomers to bring along bank references and credit references from their native nations for building a credit profile in Canada.
• Large down-payments—Another obstacle for new immigrants coming to Canada and wanting to get finance for purchasing a home here is large-down payments. It is, undoubtedly, a typical problem among immigrants in Canada, admits a mortgage agent working with Invis, Toronto, Militsa Fiuzza.
According to several reports, majority of financial institutes including banks require newcomers to provide a down payment of a minimum of 20 percent to 35 percent.
Although, things are improving quite a bit with banks showing less reluctance towards newcomers in Canada, but still, more needs to be done. only then can new Canadians buy property in Canada.
• Lack of employment history—Insufficient employment history is yet another problem faced by majority of new Canadians looking to get mortgage finance. Since they don’t have sufficient employment history in Canada, they can’t show a stable income here. And this hinders their support in Canada.
• Cultural and language challenges—Newcomers in Canada also face language barriers and this restricts their ability to face the process of mortgage application, Fiuzza clarifies. Need of the hour is to explain various regulations to new immigrants concerning mortgage in Canada.
Requirements for smooth process of mortgage finance in Canada—
• Get copies of your passport, work permit/landed status documents;
• Employment letter or letters;
• Social insurance number;
• Documents of source of down payment money;
• Credit reference/references;
• Bank statements depicting 90 days of bank account activity.