How to Get the Lowest Mortgage Rates in Ontario When You’re New to Canada
By : Mits Kantaria
If you are new to Canada and a first time home buyer in Ontario, you’ll need to go through several steps to provide documentation and meet requirements for a mortgage with a money lender like a bank or private institution. A mortgage broker in Ontario can make the process simple and stress-free.
Get tips to qualify for the lowest mortgage rates in Ontario and find out where to get help from a trusted mortgage broker in Ontario.
What Type of Finance do You Need from Mortgage Lenders in Ontario?
Depending on your status in Canada, you could qualify for different programs from mortgage lenders in Ontario. Permanent residents have more versatility to engage with the market. If you don’t have permanent residency, then you could have additional criteria to meet from mortgage lenders in Ontario.
- If you are a permanent resident with a good credit rating you can qualify for standard financing with mortgage lenders in Ontario. The minimum down payment is 5%.
- If you are a permanent resident with a fair or poor credit rating, you can get a mortgage through a New to Canada Program with a down payment of 5%.
- If you’re under a work permit with good credit, you can get standard financing from mortgage lenders in Ontario, with a minimum down payment of 5%.
- Non-permanent residents with poor credit may be eligible for a New to Canada Program with a down payment above 10%.
Typically, if you are new to Canada and have a strong credit rating and permanent resident status, you will usually qualify for a typical mortgage with one of the mortgage lenders in Ontario. Even if you don’t have good credit, or if you are a temporary resident, you can still get help finding a mortgage with a mortgage broker in Ontario.
What are New to Canada Programs?
New to Canada Programs are offered by Canada Mortgage and Housing Corporation, Canada Guaranty, and Genworth Financial. These mortgage default insurance providers each manage their own New to Canada Programs which help new residents and working professionals to get financing for their homes. These insurance companies work through banks and money lenders to provide security on the back of a mortgage.
Build Your Credit to Get the Lowest Mortgage Rates in Ontario
If you want the lowest mortgage rates in Ontario, you will need to build or improve your credit score. Your mortgage broker in Ontario can help you to develop a strategy for this.
You will need:
- Proof of rental payments or proof of tenancy from a landlord.
- A valid work permit or resident visa.
- Proof of income.
- Evidence of regular payment for utilities and other services.
- Regular savings for at least 12 months (with documentation).
- Up to 12 months of bank statements.
- An international credit report.
Exact criteria depend on the money lender offering a mortgage. When you work with a mortgage broker in Ontario, you will have access to the widest network of lenders. The likelihood of getting the lowest mortgage rates in Ontario will be increased.
Save for Your Down Payment – Higher is Better for Money Lenders
Money lenders see lower risk when buyers have a larger down payment. The minimum ranges from 5% to 10% depending on the scenario, but money lenders will offer the lowest mortgage rates in Ontario when the down payment is 20% or more.
You’ll pay a higher mortgage default insurance premium when you have a down payment below 20%. The premium is calculated as a percentage of the loan amount and can range from 0.60% with a down payment of 30%, up to more than 3.60% with a down payment below 10%.
Every First Time Home Buyer in Ontario Should Work with a Broker
A first time home buyer in Ontario faces challenges of understanding the mortgage market and the options available. As someone new to Canada and a first time home buyer in Ontario, the challenges are even bigger.
A mortgage broker in Ontario makes it easier for you as a first time home buyer in Ontario. Your broker will engage with the market on your behalf, find the lowest mortgage rates in Ontario, and connect you with money lenders that don’t engage directly with the public. Your mortgage broker will also help you to prepare documentation as a first time home buyer in Ontario.
Your broker will help you choose:
- Your mortgage provider.
- The amortization period.
- The mortgage term (6 months to 10 years).
- A fixed or variable rate. Rates stay the same throughout the term with a fixed mortgage. Variable rates change throughout the term as the market fluctuates.
Understanding Canada’s lending market can be overwhelming as a new resident or worker. Mortgage Capital Investment can make the process simple. Choose the most experienced mortgage broker in Ontario and get help with the process and access to the lowest mortgage rates in Ontario.
Lowest Residential Mortgage Rates in Canada*
|Term||OUR RATE||Bank Rate|
|3 Year Fixed/ 25 yrs||3.79%||4.19%|
|3 Year Variable/ 25 yrs||2.10% Promo||2.86%|
|5 Year Fixed/ 25 yrs||3.94%||4.24%|
|5 Year Variable/ 25 yrs||2.20% Promo||2.75%|
|5 Year Fixed/ 30 yrs||4.49% Promo||4.99%|
|5 Year Variable/30y||2.70%||3.40%|
Updated: May 16, 2022
* Current promotion rates may provide an additional 0.05% discount or may be anytime discontinued at the Lender discretion . Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.
LOWEST REGULAR RATES IN CANADA* * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.