Buying a new House in Canada for New Comers

[razza_123]

We are new residents of Canada. We want to buy a house or Condo in Canada but due to very low income we are not able to buy it through mortgage. We have the down payment but Real Estate agents are saying that you need a co-signer for guarantee of monthly payments, otherwise it is not possible. So, if anyone can help me in telling that what are the options to buy a house without a co-signer? What is the Canadian Procedure for new comers to buy a house?

Thanks

 

[primaprime]

Most newcomers rent so they can establish a Canadian income and credit history. The only real way to buy a property without a mortgage is of course to pay the full price upfront. If you don't have enough income to make the monthly mortgage payments then yes, you would presumably need a co-signer to back you up.

 

[steaky]

Private lenders usually advertise that they don't need the same requirements as Banks. Expect higher interest payments and perhaps you can deal with them.

 

[razza_123]

Most newcomers rent so they can establish a Canadian income and credit history. The only real way to buy a property without a mortgage is of course to pay the full price upfront. If you don't have enough income to make the monthly mortgage payments then yes, you would presumably need a co-signer to back you up.

Thanks

 

[razza_123]

Private lenders usually advertise that they don't need the same requirements as Banks. Expect higher interest payments and perhaps you can deal with them.

Thanks

 

[canuck78]

Thanks

How much of a down payment do you have? You also need to be able to pay for all the extra costs associated with purchasing a home so you’ll need that cash left plus some savings in case something breaks soon after you move in and moving expenses. There are always expenses that add up when going into a new home even if it is just for the basics.

 

[razza_123]

How much of a down payment do you have? You also need to be able to pay for all the extra costs associated with purchasing a home so you’ll need that cash left plus some savings in case something breaks soon after you move in and moving expenses. There are always expenses that add up when going into a new home even if it is just for the basics.

Thanks

 

[juxta_rn]

does co signers need to live in the same city/province or it can be elsewhere. since im thinking of having a relative be a co signee if ever tia

 

[steaky]

does co signers need to live in the same city/province or it can be elsewhere. since im thinking of having a relative be a co signee if ever tia

If they live elsewhere, how do you get their signature to sign the contract?

 

[primaprime]

does co signers need to live in the same city/province or it can be elsewhere. since im thinking of having a relative be a co signee if ever tia

They should be in Canada, if they live abroad the lender will have a hard time getting recourse from them if you default on your payments.

 

[gurpreet.ts]

We are new residents of Canada. We want to buy a house or Condo in Canada but due to very low income we are not able to buy it through mortgage. We have the down payment but Real Estate agents are saying that you need a co-signer for guarantee of monthly payments, otherwise it is not possible. So, if anyone can help me in telling that what are the options to buy a house without a co-signer? What is the Canadian Procedure for new comers to buy a house?

Thanks

I would recommend to avoid the co-signor and buy on your own based on your affordability. Its tough to give any suggestion without knowing your target city, budget, down payment, affordability. In case you need any guidance then DM me, can guide you with your options.

 

[liambll]

It's difficult to provide advice without knowing more information from your situation (city, property price range, annual income, type of job (contract or permanent), total assets, ect).
If you haven't tried RBC, RBC is more friendly with immigrants and they look at total assets and earning potential. For example, most lenders wouldn't consider incomes from new contract/non-permanent jobs when they evaluate a mortgage application, but RBC does.
PM me if you want to have my RBC Mortgage Specialist contact.

 

[YVR123]

It's difficult to provide advice without knowing more information from your situation (city, property price range, annual income, type of job (contract or permanent), total assets, ect).
If you haven't tried RBC, RBC is more friendly with immigrants and they look at total assets and earning potential. For example, most lenders wouldn't consider incomes from new contract/non-permanent jobs when they evaluate a mortgage application, but RBC does.
PM me if you want to have my RBC Mortgage Specialist contact.

Well, depends on who you got. The one we had tried to play game and rejected us. Then tried to contact us a few days for a special discussion. By that time the house we were interested were sold... We just hate people when they play games like that. If there is a special department or if there are ways to get the mortgage we needed, she should have told us up front.

We ended up pulling all our accounts (my hubby was a new comer and I have lived here most of my life) including RRSP, investment, savings, and the new mortgage all to a different bank.

 

[red_rom]

Well, depends on who you got. The one we had tried to play game and rejected us. Then tried to contact us a few days for a special discussion. By that time the house we were interested were sold... We just hate people when they play games like that. If there is a special department or if there are ways to get the mortgage we needed, she should have told us up front.

We ended up pulling all our accounts (my hubby was a new comer and I have lived here most of my life) including RRSP, investment, savings, and the new mortgage all to a different bank.

My spouse and I had similar experience with one of the top five banks as well. The guy seemed to be an amateur working from a desk and advising people on mortgages from a big bank. We were new back then and he played silly games asking for documents over documents and never clearly gave alternatives or solutions and wanted to check our credit score, even after we told him not to.

Based on my interactions with mortgage agents within the big banks and other agents who interact with literally more than 50+ lenders across diverse A,B,C and private lenders, I would chose the latter any day. They have so many options and they can tell you upfront what might be tricky, what might go through and how best to prepare your case. That day, I lost trust with those mortgage agents in the banks, even till date have never gone back to them for any of my personal finances, mortgages to my clients or for any investment purposes.

 

[canuck78]

Would really suggest people get preapproved especially in hot real estate locations.