Edmonton’s Mortgage Landscape: Best Choices for New Homeowners

For newcomers, being a first-time home buyer in Edmonton can be intimidating. Because new Canadians often don’t have a sufficient employment record or established credit history in Canada, getting a regular mortgage can be challenging.

A newcomer is someone who has moved to Canada within the last five years and is a permanent resident or has been approved by Immigration and Refugee Citizenship Canada (IRCC) for a permanent residency status.

To qualify for a loan, newcomers must meet the above-mentioned criteria. Plus, they must also:

• Have a social insurance number that doesn’t start with a 9.
• Have an international credit report.
• Be employed full-time in Canada.

Because new Canadians face unique challenges and more strict criteria from borrowing agencies to secure a mortgage for newcomers, Edmonton offers different programs, incentives and saving tools to help permanent residents secure a loan for a house.

New to Canada Mortgage Program

This newcomer mortgage program helps new Canadians with limited credit history, or a restricted residency status qualify for a mortgage. This program has easy document requirements to make the application process as easy as possible. It offers flexible down payment options to meet the needs of each applicant.

The New to Canada Mortgage Program is offered by three mortgage default service providers:

• Canada Mortgage and Housing Corporation
• Genworth Financial
• Canada Guaranty

Edmonton’s Home Buyers Plan

The Edmonton Home Buyers Plan is another mortgage for newcomers’ incentive that allows new Canadians to withdraw up to $35,000 from their Registered Retirement Savings Plans (RRSPs) investments so they can buy their first home without facing any penalties. To qualify for this program, new home buyers must have RRSP investments to borrow from.

Additionally, there are several other mortgage incentives in Edmonton that offer down payment assistance, tax incentives and alternate lending options including the First Time Home Purchase (FTHP) tax credit and different mortgage type options.

Alternative Lending Options

Newcomers often face stricter criteria from different lending agents when they’re applying for a newcomer mortgage in Edmonton because they often lack a Canadian employment and credit history. Alternative lenders, like banks, mortgage brokers or credit unions, will then look at other factors like the lender’s job and its stability, foreign credit reports and rent payments history to determine if the applicant can qualify for a mortgage loan.

Individual Steps to Secure a Mortgage Loan

While there are several newcomer mortgage programs, new Canadians can also take steps on their own to increase their chances of buying a house in Edmonton. Building a credit history in Canada and saving money for a home will go a long way towards helping new Canadians buy their first home in Edmonton.

It is recommended that new Canadians in Edmonton who are planning to buy a home meet with a financial advisor to discuss their plans and find the best option for getting a mortgage for a newcomer in Edmonton first home.

Once approved for a newcomer mortgage in Edmonton, the homebuyer can choose between the different types of mortgages including variable or fixed rate mortgages.

Variable Mortgage Rate

Variable mortgage rates have flexible interest rates. Variable rates can change regularly so mortgage payments can change from month-to-month. This type of lending rate is usually more appealing because the rates can be lower than a fixed rate mortgage loan, however, the rates are dependent on the Bank of Canada’s rates so they can also skyrocket, as Canadians have seen in recent years.

Fixed Mortgage Rate

With a fixed mortgage, the rate remains the same for the life of the mortgage so monthly mortgage payments are the same every. Fixed rates don’t change if the market rates change. For those who need or want a regular payment as part of their monthly budget, this is considered the more attractive mortgage type.

Newcomers planning to buy their first home have many mortgage incentives in Edmonton to help get a mortgage.

Ready to take the first step? Contact or visit one of our showhomes to chat with our Sales Team!