Tuesday April 10 - New to Canada

Homeownership tips for new Canadians

For many immigrants, homeownership is an important part of what it means to be a citizen. Here's what you need to know to make that dream a reality.

Alex Nicolev and Oxana Nicoleva always knew they wanted to own their own home. After immigrating to Canada from the Republic of Moldova in 2010, they decided to make their dream come true. "I think it's really important to have your own house where you can raise your children," Alex says. The couple, who are expecting their first child in August, started their Canadian lives as renters. After Alex secured a job as a manager at a telecommunications company, the two agreed it was time to start looking for a home to call their own. But they quickly found they had a lot to learn about the process of buying a home in Canada.

"In Moldova you have to pay cash for your house and sometimes it takes all your life to save money for this. But in Canada, you have the possibility to get a mortgage from the bank," Oxana explains.

Like Alex and Oxana, many new Canadians run into cultural differences in the process of buying a home here. "Owning a home is very emotional for immigrants, because we've left home behind," explains Nick Noorani, managing partner of Destination Canada, a company that provides information to immigrants before and after their move to Canada. "There's nothing like owning a home to say you've arrived and this is your country."

More than 90 percent of new immigrants want to purchase a home in Canada, according to research conducted on behalf of Genworth Canada. The survey also shows that the majority of immigrants say they lack information about financing options. That's why Noorani advises new Canadians to learn about mortgages and what their choices are before they begin shopping.

Here's what immigrants need to know about buying a home in Canada

Establish your Canadian credit history
"When an immigrant comes [to Canada], they don't have a credit history, and that becomes part of the challenge of getting a mortgage," Noorani explains.

Many financial institutions won't accept international credit reports, making it tough for newcomers to prove that they're financially reliable. Banks often won't grant credit cards to immigrants, precisely because they don't have a Canadian credit history.

To start building your Canadian credit history, Noorani recommends opening a bank account and using it regularly, paying all your bills on time and applying for a department store credit card to demonstrate that you can manage to pay it off each month.

Save for your down payment
The larger your down payment on your new home, the smaller your monthly mortgage payments will be. A down payment of 20 per cent or more will qualify you for what's called a conventional mortgage. "Most newcomers have a challenge because they don't have access to those kinds of funds," Noorani notes. But Genworth Canada's New To Canada program can make the process much easier by allowing newcomers who have been in Canada for 36 months or less to qualify for mortgage default insurance so that they can purchase a home with as little as five per cent down payment.

Start your savings plan by transferring part of your regular paycheque to a savings account. Then talk to a mortgage professional about the mortgage insurance options that are available to you.

Do your research
If you're getting ready to purchase a new home, take some time to learn about different mortgage options, products and terms. Start your research with the Homeownership Guide for New Canadians available in seven languages.

Consider the kind of house and the neighbourhood you would like to live in. Alex and Oxana wanted to live close to friends, and that was a key factor in their decision on where to purchase their new home. Before you start your own home search, take some time to learn about different types of homes, school districts and communities.

Consider additional fees
There are a number of fees associated with purchasing a home, which can run up to thousands of dollars. These costs are in addition to your down payment and mortgage payments, and include legal fees, home inspection costs, condo fees and property taxes. You'll also want to consider costs associated with moving, such as renting a truck or hiring professional movers.

Share your comments with us on our blog.

A better way to homeownership - Spring 2012

Ask your mortgage professional for a Genworth-insured mortgage today,
or call 1-800-511-8888


	Tuesday April 10 - New to Canada
Home Why should I consider homeownership? How can I achieve homeownership faster? How can I make sense of the homebuying process? How do I make the most out of the equity in my home? How do I plan for unexpected life events? Are you new to Canada? What products are available to me? Case Studies National Homeownership Education Week Monday April 9 - Financial Fitness Day Tuesday April 10 - New to Canada Wednesday April 11 - Home Improvements & Savings Thursday April 12 - Benefits of Going Green Friday April 13 - Homeowner Assistance Mortgage Quiz Education Videos Assistance Videos	Print Section Homeownership tips for new Canadians For many immigrants, homeownership is an important part of what it means to be a citizen. Here's what you need to know to make that dream a reality. Alex Nicolev and Oxana Nicoleva always knew they wanted to own their own home. After immigrating to Canada from the Republic of Moldova in 2010, they decided to make their dream come true. "I think it's really important to have your own house where you can raise your children," Alex says. The couple, who are expecting their first child in August, started their Canadian lives as renters. After Alex secured a job as a manager at a telecommunications company, the two agreed it was time to start looking for a home to call their own. But they quickly found they had a lot to learn about the process of buying a home in Canada. "In Moldova you have to pay cash for your house and sometimes it takes all your life to save money for this. But in Canada, you have the possibility to get a mortgage from the bank," Oxana explains. Like Alex and Oxana, many new Canadians run into cultural differences in the process of buying a home here. "Owning a home is very emotional for immigrants, because we've left home behind," explains Nick Noorani, managing partner of Destination Canada, a company that provides information to immigrants before and after their move to Canada. "There's nothing like owning a home to say you've arrived and this is your country." More than 90 percent of new immigrants want to purchase a home in Canada, according to research conducted on behalf of Genworth Canada. The survey also shows that the majority of immigrants say they lack information about financing options. That's why Noorani advises new Canadians to learn about mortgages and what their choices are before they begin shopping. Here's what immigrants need to know about buying a home in Canada Establish your Canadian credit history "When an immigrant comes [to Canada], they don't have a credit history, and that becomes part of the challenge of getting a mortgage," Noorani explains. Many financial institutions won't accept international credit reports, making it tough for newcomers to prove that they're financially reliable. Banks often won't grant credit cards to immigrants, precisely because they don't have a Canadian credit history. To start building your Canadian credit history, Noorani recommends opening a bank account and using it regularly, paying all your bills on time and applying for a department store credit card to demonstrate that you can manage to pay it off each month. Save for your down payment The larger your down payment on your new home, the smaller your monthly mortgage payments will be. A down payment of 20 per cent or more will qualify you for what's called a conventional mortgage. "Most newcomers have a challenge because they don't have access to those kinds of funds," Noorani notes. But Genworth Canada's New To Canada program can make the process much easier by allowing newcomers who have been in Canada for 36 months or less to qualify for mortgage default insurance so that they can purchase a home with as little as five per cent down payment. Start your savings plan by transferring part of your regular paycheque to a savings account. Then talk to a mortgage professional about the mortgage insurance options that are available to you. Do your research If you're getting ready to purchase a new home, take some time to learn about different mortgage options, products and terms. Start your research with the Homeownership Guide for New Canadians available in seven languages. Consider the kind of house and the neighbourhood you would like to live in. Alex and Oxana wanted to live close to friends, and that was a key factor in their decision on where to purchase their new home. Before you start your own home search, take some time to learn about different types of homes, school districts and communities. Consider additional fees There are a number of fees associated with purchasing a home, which can run up to thousands of dollars. These costs are in addition to your down payment and mortgage payments, and include legal fees, home inspection costs, condo fees and property taxes. You'll also want to consider costs associated with moving, such as renting a truck or hiring professional movers. Share your comments with us on our blog. Ask your mortgage professional for a Genworth-insured mortgage today, or call 1-800-511-8888

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