STEP BY STEP GUIDE FOR NEW IMMIGRANTS TO BE A HOME OWNER IN CANADA

Most of the new immigrants interested in buying a house in Canada come from Britain or America, but an increasing number of people are coming from China and other Asian countries like India, Pakistan, Sri Lanka and many more.

When a new immigrant arrives in Canada with a dream of making Canada his “New Home”, he immediately starts working hard towards achieving this goal. But it is not always very easy with New Immigrants.  People move to Canada for various reasons. It has shown it has a resilient economy, it is hospitable toward foreign investment, and it has a stable government and banking system.

So if you're keen on planting roots in your new country, buying a home is a great first investment but there are a number of regulatory hurdles and obstacles that could create a problem.

Here are few steps that will help you get to your “First Home” in Canada.

 THINK OVER IT THOROUGHLY

·         What kind of a house you want? “

A Condo, A Town home, A Detached House” Which type of house will suit your taste, and serve all your needs.

·         Budget: What is the set budget limit for you? How much can you afford? You need to bear in mind that after the actual purchase there would be additional expenses too like “property tax”, “maintenance”, “renovation” etc.

·         Location: Where exactly would you want to live? Canada is a diverse country, and this is reflected in its communities. Big cities like Toronto and Vancouver have multicultural environment. Would you want to live in a location which has your community or would you live in a place which has multicultural community? It solely depends on your preference.

         

     SECURING A MORTGAGE

Many of the Mortgage lenders are easy going with immigrants coming from a country with income tax. In fact many companies offer a special plan/program for new immigrants.

It’s a good idea to get pre approval for a mortgage.

   BUILD CREDIT

When you’re looking for a mortgage, Credit and Work history play a very important role. This can be a problem to new comers as when they arrive in Canada; they literally do not have any credit at all.

Thus, it is very important to start building up your credit as early as possible. The first step to build up a credit is by getting a Credit Card from any Bank. Once your account is open in a bank and you have a credit card on your name, start building up your credit by making at least few bill payments with your credit card and then paying your credit card bill on time. Bills like rent, utilities, phone, internet etc should be paid consistently and on time. Staying with the same employer for a long period of time also builds up confidence in you when being considered for mortgage.

  GET INSURANCE

      New comers should also consider getting mortgage loan insurance. If you don’t have a 20% down payment required by most banks, these programs can help you buy a home.

      According to the Government of Canada,” This type of insurance protects lenders and helps people to buy a home with as little as 5% down payment”

      

           GET IT WHILE IT’S HOT

The Canadian Real Estate market continues to heat up every day. The average price for detached home in Toronto recently shot above $ 1 million and sales climbed 11.3% in February 2015 from the same period the previous year.

Canada is a wonderful country with options to fit everyone's tastes. Financing a home may seem like an arduous process, but it's hard to put a price tag on stability and comfort. The important thing is to do your research, take things slowly, and consider all your options.

Editor: Neha Charan