Recently Landed Immigrants
If you’ve been in Canada for less than three years, are employed with a full-time job, there may be options for you via the New to Canada mortgage program even without established credit. Explore the eligibility criteria and find more information about it in my blog on the subject.
Otherwise, those who do not fall under the New to Canada program’s guidelines may have a harder time securing approval for a mortgage, which is then when private mortgage lenders may come in handy. That said, some private mortgage lenders are sympathetic to these circumstances and may make exceptions. There could potentially be downsides, for instance, such as a higher required down-payment amount, so be sure to work with a mortgage broker who can walk you through all the terms and conditions and find an ideal private lending option.
Self-Employed Individuals or Those with Changing Incomes
Most financial institutions require two years of proven, relatively consistent income, but if you don’t hit the mark in terms of regular earnings, a private lender may be a better option. For example, if you’ve been self-employed for two years but don’t have a regularly strong income, then I’d recommend looking into private mortgage lender options. This may the case if you run your own business, freelance and work on a contractual basis, or otherwise. If your income changes regularly, or should you be your own boss, private lenders can sometimes effectively come to the rescue, whereas bigger banks otherwise must adhere to their requirements.
Individuals Earning Income in Another Country
Should you have a source of a foreign income, again, you aren’t earning within Canada. Some lenders may have solutions available to you, but there could be conditions including potentially higher down-payments (upwards of 35 percent in some cases). If you don’t meet the criteria with a traditional lender, then a private one may be able to accommodate for foreign income or allow for a smaller down-payment, helping to ensure you don’t miss out on your dreams of homeownership.