Home ownership is now easier for newcomers

(NC) Buying your first home in Canada can be a challenging experience – and for newcomers, who may not understand the mortgage process, it can be even more so. Many immigrants express that they don’t understand the nuances, and others have certain preconceived notions that don’t always hold true, like requiring a credit history to obtain a mortgage.
 
According to a recent poll from the Royal Bank of Canada, 56 per cent of newcomers believe that a Canadian credit history is required in order to get a mortgage. This is a myth. In reality, the financial path for newcomers is much brighter, and much easier, than people might think.
 
“Newcomers to Canada who have been in the country less than five years, no longer need to produce a credit history for an RBC mortgage,” says Christine Shisler, the director of multicultural markets. “We listened to the needs of immigrants and made some enhancements to our policies, making it easier for newcomers to get settled. The change to our newcomer mortgage program gives people more time to qualify and more time to save for their down payment.”
 
Shisler’s three tips for potential homebuyers:
 
1. Get pre-approved
 
When you are pre-approved for a mortgage, you can shop for a home with confidence. Meet with a mortgage specialist before you tour open houses – you’ll have a clearer picture of what you can afford and that will take some of the stress out of the home buying process.
 
2. Know the hidden costs
 
Beyond the mortgage amount, legal fees and land-transfer taxes are common examples of costs that often aren’t accounted for when purchasing a home. Speak to a mortgage specialist to make sure you know all the associated costs.
 
3. Keep your total budget in mind
 
Allow for a little wiggle room so that you’ll have some funds in reserve for ongoing home ownership costs, your lifestyle needs and any unexpected expenses that may arise.
 
The poll also showed that many newcomers (44 per cent) don’t know which products are right for them. This is the main reason, says Shisler, to get personal guidance from a financial advisor or a mortgage specialist. More information is available at rbc.com/settlequick or at any RBC branch.
 
Source: www.newscanada.com