Establishing credit to get a mortgage: Newcomer

[alsaqqaf]

Hi all, quick question: How many months would it take after you start earning regular income to be able to secure a mortgage? for newcomers you need to put 35%, how do make it drop to a lower percentage, say 20%? 6 months? 1 year? any tips will be most helpful. Thanks.

 

[steaky]

Why don't you go directly for mortgage?

 

[YVR123]

I think typically, they need 2 years of employment history or NOA (if self employed) to show enough income.
https://www.canada.ca/en/financial-...s/mortgages/preapproval-qualify-mortgage.html

They will calculate how much you can afford. (not up to you to tell them)
"Mortgage lenders or brokers will use your financial information to calculate your total monthly housing costs and total debt load to determine what you can afford."

Oh and you credit rating/history will affect the mortgage rate that you get as well.

 

[ALRIVAS]

Hi Alsaqqaf with 1 year of credit record you can buy with 20% down as long as you have the same employment for 1 year too.
The best way is to get a mortgage broker that can guide you there are other ways too.
If you are buying in ontario go to my site all the info for a firstimer is there alrivas.com.

 

[anujoshi]

Hi all, quick question: How many months would it take after you start earning regular income to be able to secure a mortgage? for newcomers you need to put 35%, how do make it drop to a lower percentage, say 20%? 6 months? 1 year? any tips will be most helpful. Thanks.

Usually with 1 year of steady income and good credit history in Canada, you should be OK at the regular 20% or less. Under 20% down, you do have to pay the CMHC premium on top of your down payment, and above 20% down, you don't have to worry about it. Of course, your yearly gross income will determine how much of a mortgage you would get approved for, and that would also impact the rate the banks would offer you.

I suggest you speak with a mortgage broker to understand the process in detail.

If you are a first time home buyer, you can also enjoy additional benefits like the Land Transfer Tax rebate (applicable in certain situations only). I am a Realtor and would be happy to help you discuss further, and also suggest 2-3 mortgage people to you so you can start discussing your finances and plan ahead. Let me know if that would help - you can reach out to me directly at anujoshirealty@gmail.com

Good luck!