Summary:
Did you know if you are new to Canada (have been in Canada for less than 5 years) you can buy a property and get a mortgage with no credit history or income?
There are currently 2 programs that exists:
- This is an equity program that requires the client to have 35% down-payment. In this case there is no need for verification of credit or income. Some lenders may ask to see additional funds in account for mortgage and property tax payments (usually between 6 months to 24 months of payments in addition to the down-payment)
- This is an insured program. Under this program the client can buy a property with as little as 5% down. In this case the credit history is verified by 12 months of utility bill and rent payments. The other stipulation is that the income must be from full time employment in Canada and debt service the mortgage loan.
Here is one of recent mortgages we have arranged for our clients.
Scenario:
Client is new to Canada required financing for a purchase of a 2 million dollar home.
Mortgage Required: $1,200,000
Obstacles: Client has no income in Canada or any credit history for the bank to qualify the deal.
What we accomplished:
– We were able to finance the mortgage at 35% down-payment with A lender
– Deal was funded without income verification
What’s more interesting:
Mortgage product was a HELOC where client has interest only payment, giving the client better monthly cash flow and full flexibility to pay down thew mortgage at any time with no penalty or restrictions.
Result:
– $1.2 million dollar mortgage was funded with no income or credit history
– We negotaited best rates for the cleint
– HELOC interest only payments: $3,474.75 /monthly
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