COMING TO CANADA
Each
year more than 200,000 immigrants decide to make Canada their home and, of
these, roughly 60% settle in Ontario. As you may know, one of the biggest
challenges for new immigrants is finding a place to live and paying for
it.
This
first column – in a series of three – will discuss the trials and
tribulations new immigrants, like yourself, may face when considering home
ownership in Canada. Maybe you know someone who has recently immigrated to
Canada or maybe you are new to Canada yourself.
Picture
this – a family waving good-bye to their loved-ones as they board a
plane, their life in a new country about to begin. They are worried about
language barriers, making new friends, finding employment and schooling
and, perhaps most importantly, finding a place to live. A decision to
leave your country of origin is a big one, and the choice to make Canada
your home should be made easier by support that is available to you once
you arrive.
When
you first arrive in Canada, you will likely stay with friends or relatives
for a little while. You may live in a shared apartment or begin by renting
your own place, but this is not the ideal situation for anyone who was
able to live independently before they came to Canada. One of the biggest
hurdles to living independently is home ownership – finding a place to
live, a place you can afford that you and your family can call home.
Before
1980, immigrants who came to Canada typically would not be able to afford
to purchase their own home for about 15 years. Prices and interests rates
were high. Since 1980, however, prices of homes, as well as interest
rates, have decreased, relatively speaking. It now takes a
new
Canadian just 6 years on average before he or she is able to achieve home
ownership. Someone who arrives in Canada ready to buy a home with a lot of
cash in a savings account might assume it will be easy. Unfortunately, for
immigrants, home ownership is a little more
difficult,
even if you don’t take a high ratio mortgage. If you don’t have a job
when you arrive or are not able to confirm your credit history with prior
lenders, Canadian lenders will be reluctant to approve a mortgage for a
new home without mortgage insurance
On
the other hand, new Canadians who have been here for a few years, and who
have been in a steady job for at least 18 months with enough income, have
the same requirements for getting a mortgage as any other Canadians.
Today,
there are many services available to help new Canadians achieve the dream
of home ownership. Banks, mortgage brokers, and insurance companies
typically have specialized agents to deal with immigrant services and they
can help you familiarize yourself with the process.
If
you’re purchasing a home and are borrowing more than 75% of the value of
the property, your mortgage must be insured in case of default. Mortgage
insurance makes low down payments possible. Ask your mortgage professional
about Genworth Financial mortgage insurance.
Through
its qualified foreign employee program, Genworth makes it possible for
home buyers who have landed immigrant status or who have been transferred
to Canada by their employer to purchase a home with as little as a 10%
down payment. This allows new Canadians to have
access
to mortgages at a reasonable rate whereas without a Genworth-insured
mortgage they may not qualify or be required to pay higher interest rates.
Genworth
Financial (NYSE: GNW) is a leading insurance holding company, serving the
lifestyle protection, retirement income, investment and mortgage insurance
needs of more than 15 million customers in 24 countries, including the
U.S., Canada, Australia, Japan, the U.K. and more than a dozen European
countries.
Genworth
Financial Canada is the only private sector supplier of default mortgage
insurance in Canada. Genworth works with lenders, mortgage brokers, real
estate agents and builders to make housing more affordable and home
ownership more accessible anywhere in Canada. The
company combines global experience in mortgage default insurance with strengths in technology and Six Sigma Quality to deliver innovation to the mortgage marketplace.
Additional
information about Genworth Financial Canada is available at
www.genworth.ca, by calling the National Underwriting Centre toll free at
1-800-511-8888 or through mortgage lenders.
