MORTGAGE SOLUTIONS FOR SOUTH AFRICANS MOVING TO CANADA

CONTACT HOMEWISE

Howzit partners with Homewise to enable homebuyers to get their best mortgage with a full-service digital brokerage solution. We negotiate for you to get you the best rates & features from over 30 Banks, Credit Unions and Financial Institutions. Matching your unique needs to save you money.

HOW WE CAN HELP

A Canadian company with a Saffa understanding – we have worked with many South Africans buying a property in Canada and can ease the transition and get you the best deal.

We understand there are all types of new Canadians and we work to find the best solution both in the short and long term.

Answering all your questions on mortgages in Canada. The difference between other countries and Canada in terms of buying a home. We cover questions in the below video such as:

  • Documentation. to bring with from your originating country
  • Can you buy property on a work permit or Permanent Residency? Do you need to be a Canadian Citizen to buy?
  • Can you buy a home immediately on landing?
  • Why use a mortgage
  • Downpayments/Deposits on a property – how much do I need and how does it work?

 

We can help you get the best mortgage rate - Reach out to us

Frequently asked questions

CMHC FIRST TIME HOME BUYERS INCENTIVE

The First-Time Home Buyer Incentive or FTHBI went live on September 2nd, 2019, helping with affordibility for Canadians buying their first home. 

The CMHC (a government body) will provide 5% or 10% toward a new home buyer’s down payment.

By putting down extra money toward your down payment, it can help to lower monthly mortgage payments, while potentially enabling home buyers buying a property below ~$500,000 to better afford a home.

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DO I REALLY HAVE TO GIVE A 20% DEPOSIT?

For qualified new immigrants, landed immigrants, PR’s, Canadian citizens, etc, there are three different types of downpayment rules to be aware of.

    • Uninsured Conventional: For someone buying a home above $1 million, they will need at least a 20% down payment.
    • High ratio: For someone buying a home below $1 million, they can have a down payment between 5-19.9%, however, they will need to pay CMHC insurance (roughly 4% of the price of the home). Which will be amortized against the lifetime of their mortgage.
    • Conventional Insurable: To not pay CMHC insurance, a 20% down payment is needed for a home below $1 million.

Note that for some new to Canada situations, a 20% down payment is needed from a B lender.

WHAT DOES A CREDIT SCORE MEANS IN TERMS OF BUYING PROPERTY AND HOW DO I BUILD/GET ONE?
  • All prime lenders want to ensure clients have strong credit (usually above 650). 
  • For a B lender credit scores can be lower, but that will come with a higher rate. 
  • Credit scores are derived by all of the credit-based spending an individual has. This can come from credit cards, loans and cable bills. It is important to have at least two lines of credit. 
  • To build credit, always ensure payments are made in full and on time. 
WHAT DOCUMENTS DO I NEED TO PREPARE?

For buying a home, clients will need to provide: two pay stubs, key tax documents (i.e. T4 and NOA), government-issued ID, three months of bank statements and potentially other documents based on how recent they have moved to the country. 

AS AN EMIGRANT, WHAT ARE THE BASICS I NEED TO KNOW?
  • When going into the process, speak to a mortgage specialist to get an idea of what you can afford. There are many rules in Canada to qualify for a mortgage. So a mortgage specialist can let you know what your affordability is, what type of mortgage products are available as well as what you may need to do to qualify for a mortgage if you do not currently. 
  • It is also important to know that not all mortgage providers provide programs for new Canadians. So speaking with an Advisor from a company like Homewise, that works with 30 different lenders will provide you insight into what products may be available now, vs. as you continue to change your immigration status. 
  • Key note, there are big banks, but there are also other types of lenders. So if a big bank turns you down, it does not mean that you cannot qualify for a mortgage. 
CAN I USE MY PROPERTY IN SOUTH AFRICA AS REFERENCE/INSURANCE/FUNDING?

No, unfortunately, only US properties can be considered. 

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