New to Canada? Are you curious about how to best get your landed and non-landed new immigrant clients approved for residential mortgages in 2010.
Below are some tips and general guidelines and how I can help get New Canadians and Non-permanent residents approved for a mortgage in the Greater Vancouver area.
- The Home to be mortgages must be for the following purpose: Primary residence or a mortgage refinance.
- Amortization: Maximum 35 year amortizations for all new Canadians and non landed immigrants.
- Loan To Value ratio must not exceed 95%, this means you will have to put down at least 5% down payment. This basically means 5000.00 per 100,000 of the home purchase price.
- Credit Beacon Score: Minimum credit score needs to be a beacon score of 600. Some lenders will accept "reject" beacons with alternate credit sources for co-borrower(s). Alternate credit sources include things such as an apartment lease for 12 months and other comparable types of credit. Please keep in mind the lenders that accept this are not the lowest interest rate sources.
- Debt servicing ratios should not exceed a Gross Debt Servicing(GDS) ratio of 35%, GDS refers to the housing payment plus monthly condo fee and property taxes, and the Total Debt Servicing (TDS) Ratio should not exceed 42%. TDS ratio refers to a clients overall debt servicing profile including other debt beyong the housing expense debt mentioned above, this TDS ratio typically includes debt such as car payments, credit card debt, student loans etc
- Down Payment: minimum 5% down from own resources and allow any additional down payment to be gifted over 5%. The first 5% must be from the clients own resources, over 5% downpayment is allowed to be gifted by an immediate family member.
- Property Type: Single family home or townhouse / townhome, duplex up to 4-plex or apartment condo are acceptable property types. Properties such as co-ops and bare land etc are not acceptable under the new immigrant / non-landed immigrant program in Canada.
- Occupancy: Owner occupied only, rental properties do not qualify under this program.
- Documents: Requires confirmation of landed immigrant status through a valid permanent residence card or a current work visa
- Up to 90% Loan To Value (LTV) - letter of reference from a recognized financial institution or six months bank statements from primary account
- 90.1% - 95% LTV - two alternative sources of credit demonstrating timely payments over past 12 months: letter from landlord and bank statements, one other alternative source i.e. hydro/utilities, telephone, cable
These are some fairly general guidelines, for up to the minute information or info on other mortgage products in the Greater Vancouver area, please feel free to ask by phone or email.