Canada’s ongoing immigration initiatives bring a steady supply of potential buyers (and borrowers) to the real estate sector. Recognizing that this sector requires unique rules for mortgage qualifying, lenders and insurers have introduced a number of ways to help “New to Canada” applicants get a mortgage.
Borrowers are able to prove credit-worthiness in unique ways. For instance, foreign credit reporting tools can be used to help a lender adjudicate a file if the applicant has limited domestic credit reporting. Letters from banks, 12 months of bank statements, and other unorthodox means can help satisfy what a lender needs for a credit review.
If the applicant has less than a 20% down payment available, the insurers have special programs too. They will allow people to qualify using different methods than those a borrower who has lived in Canada their entire life might be judged on.