Whether you’re looking to make a fresh start or some investment opportunities, the Canadian housing market is a great choice. From working with a real estate agent, to purchasing mortgage protection products, here’s what you need to know about buying a home in Canada as a newcomer.
Buying your first home, especially as a recent immigrant to Canada, can be one of the most exhilarating - and stressful - moments of your life. But armed with the right information, you can shop for a house, apply for a mortgage and mortgage protection plan, and close the deal with confidence.
To help make the process easier, here are some simple steps you need to follow:
- Determine "how much house" you can afford (and if renting might be the better option).
- Prepare your finances.
- Go shopping for a mortgage and a mortgage protection plan.
- Save cash for a down-payment.
AIME’s 20/20 Mortgage Insurance Gives You The Ultimate Protection
At AIME, we know just how exciting and important buying your family home can be. That’s why we offer affordable, transparent, and flexible mortgage protection products, disability coverage, and critical illness insurance, to protect your home and secure your family’s financial future.
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Calgary Mortgage Protection
Buying a Home in Canada: 3 Tips For Newcomers
Many newcomers to Canada bring their families with them, which is why buying a home is often at the top of their to-do list. However, it’s important not to rush this process: taking your time and doing adequate research is crucial to making the wisest and most informed decision.
If you are looking to buy a home in Canada, here are 3 tips to help you along in the process:
1. Build a Credit History
Most Canadian homes are purchased with a mortgage, which is a loan from a bank, credit union, or another lender. In order to secure a mortgage, you will have to provide a cash down payment of at least 5%.
In order to be approved for a mortgage application, your lender will look at your financial situation and credit history, which is why it’s important to establish a financial record in Canada before buying a home.
Here are some simple steps to get started:
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Open a bank account. Use this to deposit your pay-cheques, pay your rent, and your utilities. This will help you build your financial record and prove a history of financial responsibility.
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Keep your paperwork safe. When applying for a mortgage, you will need to show a lot of paperwork and documentation, so make sure to keep your pay slips, utility bills, and bank statements in a folder or binder, so you can have them all in one place.
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Get a credit card. Applying for a Canadian credit card is essential as this will help you build your credit history. Make sure to ALWAYS pay your card balance, or at least the minimum payment each month.
2. Save For a Down Payment
The other important step in buying your first home in Canada is saving for the down-payment. This cash deposit is necessary to secure a home loan or a mortgage. In most cases, the ideal down payment percentage is 20%.
How to start saving
Saving is a huge challenge, especially for a family who is new to the country. Some of the ways you can begin saving for your home and down-payment include:
- sticking to a budget
- taking extra shifts at work
- hosting a sale for items you no longer need
- using your hobby to bring in some extra cash (eg. you could consider dog sitting or online content writing.)
3. Talk to Professionals
A very important step in buying your first home is to put together a group of professionals who can help you successfully find and purchase a house that suits your unique needs and that’s within your budget.
You should consider talking to:
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A real estate agent. They can help you house-hunt, take you on home tours, and present your offer to the seller.
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Mortgage professional. Whether you opt for an independent mortgage broker, or a specialist in a bank, such professionals can help you qualify for your mortgage pre-approval and financing.
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Real estate lawyer. A lawyer can collect, hold, and dispense all the fees associated with buying your home, ensuring that all your payments are made on time and to the right individuals.
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Home inspector. This professional will examine your new home to find any problems such as foundation cracks, termite damage, or roofing issues. This can help you decide if you want to withdraw your offer, ask for a price reduction, or for the seller to make the necessary repairs.
Call Today
Are you ready to buy a home? AIME’s 20/20 mortgage life insurance provides the ultimate protection for your home and family and gives you total peace of mind knowing that no matter what happens, your family will always have a roof over their heads.
To find out more about our mortgage protection products, contact our Calgary office at 1-844-974-2020 or fill in our online contact form.
