CMHC and Genworth offer special financing options to borrowers with permanent residence status and non-permanent status. These newcomers to Canada help to increase the nation's positive population growth and have also created a wider variety of new market opportunities. Genworth and CMHC have a number of programs designed to help them realize their home ownership dreams.
The Newcomers to Canada Program
• Permanent Residents have full access to CMHC and Genworth Mortgage Loan Insurance Products; however, they are still subject to the specific eligibility requirements of each product. Non-permanent newcomers will only have access to Genworth and CMHC financing of up to 90% of the Loan to Value Ratio for the purchase of 1 unit of owner-occupied residential property.
• There is no minimum on the length of residency required. There are also no fees or extra premiums added as a result of residency status. The standard product specific premiums are in effect.
• If there is a limited credit history in Canada for permanent residents where foreign credit bureaus are not available, CMHC and Genworth may consider other sources of payment history for LTVs up to 95%.
Benefits of the Newcomer Programs
• This program offers very competitive interest rates from a diverse group of financial lenders, all backed by CMHC insured financing. Another great benefit is that this program is available anywhere in Canada and has no limit on the max loan amount.
• The main benefit is access to home-ownership. With just 5% down, a permanent resident is able to purchase a home.
The non-residence lending program is available for non-Canadians and to Canadians who are living abroad who want to purchase homes and property within Canada. There are some lenders that will not lend under this program, while some other lenders may offer mortgage products within certain lending locations.
What Are Some of the Programs Requirements?
Proof of Income: A letter of employment from your current employer will be required to prove your current income and length of employment with your company. Your annual salary including any bonuses will be required, in addition to confirmation that you are not on probation. A recent paystub is also required.
Down Payment: A minimum of 35% down payment from one’s own resource is a requirement for this programs' consideration. Prior to getting funding for the Mortgage, the down payment must be made available in a Canadian Bank Account. This down payment cannot be in the form of a gift and proof of these funds must be made 90 days prior to the financing.
Proof of Credit: If you are unable to attain credit information from a Canadian Credit Bureau, a letter of reference from the bank that you are currently working with or a letter from any international credit bureau should be sufficient. Oftentimes, lenders will require the borrower to have a year's net worth of mortgage payments in a Canadian bank prior to approving a loan.