Monday, January 16, 2017

Financing a home purchase as a new immigrant to Canada

Borrower Qualifications
All Applications
Applicants must be residents of Canada with Landed Immigration Status or confirmation that an application for Landed Immigrant Status has been made and received/acknowledged by Immigration Canada.
Applicants must be landed immigrants for no more than 60 months.
If the applicant files taxes in Canada, there should be no outstanding income taxes.
Income is not required, but the applicant(s) must provide evidence of the equivalent of 12 months of Mortgage principal, interest and tax payments in liquid savings in Canada in addition to the applicant’s 35% down payment. Exceptions will be considered where alternate sources of cash flow are evident to support debt service capacity and can be confirmed.
Qualifying Income
Not Applicable (N/A)
Debt Servicing
N/A
Minimum Credit Score
N/A

Overview
This policy applies to customers who have immigrated to Canada within the last 60 months and who cannot provide confirmation of income that meets TDCT income confirmation guidelines but otherwise demonstrate a strong profile.
Customers may not have established credit in Canada. If the customer does have Canadian credit, there must be no evidence of derogatory credit.
Additional Information
TD Home Equity FlexLine (referred to as FlexLine) is subject to Customer Level Pricing.
Application
Ensure that the equity lending indicator is flagged ‘Y’ and the New Immigrant radial button is selected.
Manual adjudication is required for all Conventional New Immigrant deals. Applications are not eligible for auto approval. The Credit Centre may request additional due diligence on any application. When approving deals that are submitted under Conventional New Immigrant guidelines, the Credit Centre will review the entire application.

Insured New To Canada Policy - Eligible Products

Eligible Purpose

  • Purchase
  • Refinance
  • Single advance

Ineligible Purpose

  • Insured Business for Self
  • Cottage and Second Homes
  • Progress Advance
  • Non-owner Occupied Properties

Property Types

Eligible Properties

  • Maximum 2 units where one unit is owner occupied principal residence.
  • New Construction or Resale, single advance.

Products

Eligible Products

Insured Mortgages: 1st position

Terms/Rates

Terms

  • Fixed
  • Variable Interest Rate Mortgage (VIRM)

Rates

Standard pricing applies

Amortization

Genworth:
  • Up to 25 years where high ratio (LTV > 80%)
  • Up to 30 years where high ratio (LTV < = 80%)
CMHC:
  • Up to 25 years regardless of LTV
Loan to Value (LTV)
  • Maximum 95%
  • Maximum purchase prices of $999,999.99 where LTV is > 80%
Gross Debt Service Ratios
  • 35% with Credit Score < 680
  • 39% with Credit Score >/= 680
Total Debt Service Ratio (TDSR)
  • 42% with Credit Score < 680
  • 44% with Credit Score >/= 680
  • All debts outside country must be included in the TDS
  • Rent earned outside of Canada is to be excluded from calculation
Appraisals:
  • Insurer appraises property

Application Requirements

Branch must enter in the comments the deal is submitted under the 'Insured New To Canada' policy.
Standard NHA Premiums apply

Mandatory:

All applications must be manually reviewed by an underwriter.

Down Payment

All Down payments must be verified.
95% LTV:
Down payment must come from the borrower's own resources.
Less than 95% LTV:
Down payment can come from a corporate relocation subsidy or be gifted by an immediate family member.
Mandatory:

The Credit Centre must be advised in all cases.

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