New to Canada Mortgage Programs

Canada’s three mortgage insurers CMHC, Sagen, & Canada Guarantee all have insured options. An insured mortgage is one where the borrowers have less than 20% down payment. Banks and Credit Unions have a few conventional options for borrowers who have between 20%-35% down of the total value of the property.

Insured Options

  • For candidates who have moved into Canada in the past 60 months.
  • They must have a valid work permit or landed immigrant.
  • Guarantors are not permitted.
  • All the debts outside Canada must also be included in the total debt servicing ratio. (Rental income earned outside of Canada is to be excluded from the GDS / TDS calculation).
  • The program is not for foreign diplomats and other foreign government officials who do not pay taxes in Canada.
  • Clergy assigned to specific church require only a visitor record.
  • A down payment grant provided under a mortgage insurer approved Affordable Housing Program may be used as down payment at 95% LTV (the borrower is not required to have 5% down payment from own resources).
  • 5% Down:

      5% down payment from borrowers own resources via 90 days confirmed bank statements. Down payment should be in Canada for the entire 90 days and in liquid and easily accessible cash. Some exceptions can be made, however, it is a much more comfortable experience if the money can be in a Canadian Bank account for a minimum 90 days.
    • Borrowers need to be permanently employed. This means that each borrower will be required to provide an employment letter from their employer confirming their Start Date, Position, Wage Or Salary and the Guaranteed Hour Per Week Worked. Two Pay Stubs will also be required to ensure that both the full hours are being worked and that the year-to-date hours and pay align with the employment letter.
    • Credit Score/Credit Worthiness can be demonstrated by an international Equifax or Transunion Credit Bureau or by providing 12 months of alternative credit sources (Rent receipts, cell phone bill, auto insurance, utilities).