Posted on: 21-05-07 07:07:38
Iam sorry if this has alraedy been answered, I did search ?
As a newcomer what amount is required as down payment to buy a house.
I read a while back that one does not require to pay for additional insurance if he can put aside 20% as down payment is this apllicable to newcomers.
What is the trend at the moment ? is 20% acceptable ?
Thanks........
Quote:
Originally posted by ccie2b
Iam sorry if this has alraedy been answered, I did search ?
As a newcomer what amount is required as down payment to buy a house.
I read a while back that one does not require to pay for additional insurance if he can put aside 20% as down payment is this apllicable to newcomers.
What is the trend at the moment ? is 20% acceptable ?
Thanks........
If some one wants to save CMHC default insurance fee then he/she has to put a minimum of 20% as down payment. This down payment can come either from his/her own savings or by way of gifts from close relatives. The borrower has still to qualify based on the income and credit. In the absence of income and credit the bank's may ask for up to 35% down payment.
However, if some one does not mind paying CMHC default insurance or does not have the required down payment, then he/she can buy the house even with 0% down payment subject to other criteria of approval such as credit and income requirement.
More information can be found at http://www.cmhc.ca" rel="nofollow">LINK or http://www.genworth.ca" rel="nofollow">LINK or at http://www.pramodchopra.com" rel="nofollow">LINK
p.s. On a side note. The mortgage rates are going up again and some banks have already raised their rates last week and some would follow suit in a couple of days.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks for the Reply,
I see only two things happening one is I pay 35% downpayment
or stay in Canada for a period until I have reasonable credit history to buy a house.
Do they consider the credit history of the immigrating country , any pieces of paper which they consider as valid proof?
Thanks,
Quote:
Originally posted by ccie2b
Thanks for the Reply,
I see only two things happening one is I pay 35% downpayment
or stay in Canada for a period until I have reasonable credit history to buy a house.
Do they consider the credit history of the immigrating country , any pieces of paper which they consider as valid proof?
Thanks,
Hi ccie2b,
It seems you have not gone through completely the links I provided. Every situation is different and you can qualify even with 5% down payment in the absence of Canadian Credit. Here is the link for the GENWORTH's New Comer to Canada Program which will give you better idea.
http://www.genworth.ca/mi/eng/product_solutions/newto_canada_insrnce.asp
CMHC also has similar program. If you still need any clarification, you can contact me by PM or by email and ask questions about your specific situation.
My email address can be found from the link in my signatures.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
