New to Canada Mortgages

How a New to Canada mortgage works ?

As a newcomer to Canada, our goal is to educate you on the mortgage process and assist you with financing for your first home. The mortgage process involves a number of key steps:

Calculate your affordability

We help you understand what financial documents are needed for the mortgage process, check your credit and assess the amount you can borrow.

Understand your mortgage options

We discuss your mortgage ratios GDS/TDS, mortgage terms, interest rates and amortization schedules…all the details you need to understand. We also show you all the First Time Home Buyer programs and credits available to help you finance your home.

Get pre-approved

We calculate what you can afford and get you a pre-approval so your interest rate is locked in for 120 days while you are looking for a home.

Start house hunting

This is the fun part. We can help connect you with a licensed realtor who will help you find the perfect home.,

Close the deal

After you purchase your home we facilitate the mortgage transaction.

Manage your mortgage

Now that you have a mortgage we establish a plan to help you pay down your principal, show you ways to borrow more money to pay for renovations, repairs or other expenses.

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What Government programs can help you as a “Newcomer to Canada”

One of the perks of being a new to Canada home buyer is access to some of the rebates and tax credits that the government provides. The Canadian first time home buyers tax credits, rebates and the RRSP home buyers plan are all options for first time home buyers. Our mortgage agents will help you discover which rebates are best suited to your situation and will guide you through the rebate process. Buying your first home can be expensive, so let us help you save some money by taking advantage of some of the following home buyer incentives.

Home Buyer Tax Credit:

This credit is designed to help you cover some of your closing costs. Once you have purchased your new home, you are eligible to claim your credit of $750 as long as you claim it within the first 12 months of owning the home.
In order to Qualify for the Home Buyer Tax credit, you must meet the following criteria ;
- Be within Canada
- Must be an existing or new home
- Must be a single, semi, townhouse, mobile home, condo or apartment
- Can include a co-operative housing corporation that gives you possession of the home
- You must intend to occupy the home within one year of purchase.

Land Transfer Tax Rebate:

As a first time home buyer you are eligible to qualify for the Land Transfer Tax rebate. Similar to the Home Buyer Tax Credit, this rebate is designed to help cover some of your closing costs. If you purchase a home in Toronto, you could be eligible for a rebate of up to $4475 as well as the Ontario rebate of up to $4000.

RRSP Home Buyers Plan:

Another great first time home buyers tool is the RRSP home buyers plan. The Canadian government will allow you to borrow up to $35,000 from your RRSPs as a down payment tax-free. If you are purchasing your first home with someone else who is also a first time home buyer they can also access their RRSP for $35,000 bringing the total usable RRSP amount to $75,000.

Is a CMHC Newcomer Mortgage Right For You?

According to research, 18% of mortgages today are newcomers to Canada. In fact, CMHC financing was created to help borrowers with permanent or non-permanent residency status with no minimum period of residency required.

At least one of the borrowers must have a minimum credit score of 600. In the event that credit history is not available, alternative methods of establishing creditworthiness for borrowers is available.

For more information, visit the CMHC website to see specific lending criteria.

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Variable Rate Mortgage - SafeBridge Financial Group

Why Safebridge is the Safest Choice

At SafeBridge we recognize that being new to Canada is both exciting and challenging. We want to help ensure your transition to home ownership is a successful one. We want to help you build a new life in Canada and home ownership is an important piece of that puzzle.

Our access to over 63 different lenders sets us apart. With over 20+ years in the mortgage lending space our team of mortgage professionals is qualified to help you find mortgage financing that suits your needs.

Every new Canadian has a different situation and we pride ourselves in customized solutions that solve your unique challenges with regards to your mortgage needs.

When you work with SafeBridge, our team of professionals take the time to understand your situation and come up with the perfect financing solution. It is always in your best interest to work with a company that will not only help you secure financing but also keep in mind your holistic financial goals and make sure they are all in alignment. As a company we help thousands of clients each year find the perfect financing solution to fit their needs. When it comes to new to Canada mortgages our team of exceptional mortgage brokers will assist you with finding the perfect mortgage and financing terms.

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Have Questions?
We Have the Answers

1. What is the minimum downpayment required?

As a newcomer to Canada, the regular down payment rules apply.
5% on the first $500K
10% on anything over $500K
IE. If you are looking to purchase a home for $950,000.00 your down payment amount would be:
$500K @ 5% = $25K
$450K @ 10% = $45K
Total down payment required= $70K

2. What are typical closing costs?

Most new to Canada home buyers don’t realize that there are a number of Closing costs. These can range but typically amount to 1.5%-4% of the original purchase price. It’s also important to remember that before the mortgage closes you are also responsible for the initial deposit as well as the appraisal.

- Ie. Closing costs on a $950K home would be:
  - Land Transfer Tax: (varies based on location)
  - If you live in Toronto, you pay both provincial and municipal tax.
  - Provincial $15,475 + Municipal $15,475 – First Time Home Buyers rebate ($8475) = $22,475
  - Legal Fees & Disbursements (this can range but expect to pay at least $650+

- Title Insurance- Title Insurance is purchased through your lawyer and is required to protect you against any losses in the event of a property ownership dispute.
- CMHC Insurance: This additional fee (when required) is paid through the mortgage but any PST is required to be paid at the time of closing.

3. How do I get pre-approved?

A pre-approval is the best way to get an initial assessment of how much “house” you can actually afford. There are a number of factors that are considered to determine your pre-approval. A pre-approval is an informal commitment from a lender which does two things: an informal commitment from the lender on mortgage amount and rate as well as a rate hold for up to 120 days. A pre-approval consists of four main components: Credit Score,Down Payment, Debt Service Ratio, and Supporting Documents.
- Credit Score: The higher the better! Once you fill out a SafeBridge mortgage application (hyperlink) the mortgage agent will pull your credit. Your credit score can be anywhere between 300-900 but a score above 700 shows that you can manage your personal credit and makes the lenders feel more comfortable lending you money for your mortgage.
- Down Payment: Lenders will want to know that you have resources to purchase a home and thus they require you to provide a solid down payment. (should I reiterate the down payment amounts here?) Your down payment amount will determine the size of your mortgage as well as your monthly payment amount. This may also affect the amount of CMHC insurance you will need to pay.
- Debt Services Ratio: In order to determine your ability to finance your mortgage, the lenders will take into account your Debt Service Ratios. These ratios look at your GDS Gross Debt Service and TDS Total Debt Service. It is important to speak with a SafeBridge mortgage agent to ensure they can properly calculate your GDS/TDS.
- Supporting Documents: In order to obtain a pre-approval, most lenders will want to see a number of financial documents which detail the following:
  - Proof of income (T1, T4, NOA’s)
  - Personal identification (license, passport)
  - Length of employment (Letter of Employment)
  - Information on any outstanding debts. (car payments, student debt, cc payments)

Chris is a Co-Founder and Financial Advisor at SafeBridge Financial Group, the originators of Mortgage Centered Financial Planning, and is passionate about serving his clients and empowering the incredible team to “Be Better. Be Inspiring.” Prior to co-founding SafeBridge, Chris started his career as a Financial Advisor with Sun Life Financial, formerly Clarica Financial Services, and had the privilege of serving many clients financial needs for over a decade.

Chris Karram,

Co-Founder and Financial Advisor

Over the last 20 years we’ve been successful in attracting over 60 various lenders that our clients can benefit from. SafeBridge has evolved over the years and has become a very successful company…. The education, that comes along with not just the mortgage agent side of things, but also on the insurance and the investments and the financial planning all comes together in one holistic approach.

Elisseos,

Co-Founder

Dena is a seasoned Mortgage Broker with 24 years experience in the financial industry. She started her career at Canada Trust as a part-time Teller while attending York University. During her 15 years with TD Canada Trust, Dena held various positions of increasing seniority. As a Senior Financial Advisor she gained knowledge in many disciplines in the banking and investment arena.

Dena Kakaletris,

Mortgage Agent

For several years Andre has worked in the Financial Planning and Mortgage Solutions field with Scotiabank. After experiencing success, and gaining a wide knowledge base in the banking world, he decided to leave the bank to join a Boutique Mortgage Brokerage, Safebridge Financial Group. Andre made the change so that he could offer clients a wider variety of mortgage options and lenders.

Andre Persaud,

Mortgage Agent

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How a New to Canada mortgage works ?

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