Living in Canada may be something you have been dreaming of, and although renting apartments and studios seem like a logical choice, especially when you are just starting out, buying your own home may be in your sights already.
The good news is that home mortgage loans in Canada work the same way as in other countries where each application is reviewed on a case-to-case basis. In Canada, residents, as well as those who will be buying for the first time, will receive privileges.
If you are not a resident of Canada, you cannot rely on foreign banks to provide you with mortgage loans which means that you will have to apply with a Canadian mortgage broker. You can get up to 65% of your house covered by the mortgage if you are a non-resident; while residents can have their purchased home covered up to 80%.
Mortgages in Canada can have 6% interest rates if you apply for long-term loans with homeowners paying every month for 15 to 25 years. However, if the down payment that you are going to put on your property is less than 25%, applying for home mortgage loan is recommended.
What You Need to Know as a First Time Home Buyer
Like it was mentioned before, if you are a resident of Canada, you will be given extra benefits when you apply for a mortgage loan. You can even get up to 80% coverage on your property. Another plus to this is that you can get incentives from the government too.
So, what will you need for your home mortgage loan? Depending on which mortgage lender you’ll be using, you will need to prepare the following requirements.
- Proof of liabilities. This will include car payments, existing debts, active loans and such.
- Account number where you will be making your monthly payments on your mortgage loan.
- Social insurance number
- Proof of income which can include a letter from your current employment stating your position, as well as how long you’ve been in that company and your salary.
- Lawyer’s details to help with building mortgage documents
- Details about the house you want to purchase.
How long will your application take before it is approved?
Depending on the mortgage lender that you will be sending your application to, time may vary provided that you have given all the necessary documents required.
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