YOUR
FIRST STEP TOWARDS HOME OWNERSHIP
The
decision to buy a home is not an easy one. And, for new Canadians, perhaps
yourself, there are unique challenges that can make purchasing a home or
obtaining a mortgage particularly tricky. Today these challenges are made
easier by products and services offered by organizations like Genworth
Financial Canada that exist to help you achieve your dream of home
ownership.
The
first step towards home ownership is finding a mortgage professional --
either a lender or a mortgage broker. A mortgage broker is someone who
will help you find a lender (usually a bank) to approve a mortgage loan
without charging you a fee.
If
you choose to work with a mortgage broker, talk to several different
brokers at a variety of companies before you choose one. Your broker’s
job is to help you with important first steps like finding out whether or
not you will qualify for a mortgage, who will be the lender, whether you
will need mortgage insurance and what interest rate you will pay. Finding
a mortgage professional who speaks your language may make you more
comfortable.
A
key challenge for many new Canadians who are looking to purchase a home is
that they may be lacking credit history in Canada, and all lenders make
decisions based on a person’s credit history. Your credit rating is a
history of your financial activity. It tells the lender whether or not you
have paid your bills on time in the past and if you have any other
outstanding debts, like a loan or a credit card. It includes details about
any loans or credit cards you may have had, and your payment records on
these loans and to other institutions.
With
no credit history in Canada, there is greater uncertainty about whether or
not a borrower will repay a mortgage loan. Lenders see greater risk when
there is no reliable way to evaluate if a borrower will be able to keep up
with payments. This can lead to delays in the mortgage approval process.
To
avoid any unnecessary delays make sure that your credit history is
up-to-date and correct.
This
is most easily done through the financial institution in your home country
before you come to Canada. It will pre-approve an amount based on how much
you want to pay for a house and how large a down payment they think you
can make. Unfortunately, sometimes you may not be able to supply a credit
history.
With
a Genworth insured mortgage and with the help of lenders it is possible
for new Canadians who have little or no credit history to secure a
mortgage. Genworth makes it possible for home buyers who have landed
immigrant status or who have been transferred to Canada by their employer
to achieve home ownership with as little as a 10% down payment.
Genworth
Financial (NYSE: GNW) is a leading insurance holding company, serving the
lifestyle protection, retirement income, investment and mortgage insurance
needs of more than 15 million customers in 24 countries, including the
U.S., Canada, Australia, Japan, the U.K. and more than a dozen European
countries.
Genworth
Financial Canada is the only private sector supplier of default mortgage
insurance in Canada. Genworth works with lenders, mortgage brokers, real
estate agents and builders to make housing more affordable and home
ownership more accessible anywhere in Canada. The company combines global
experience in mortgage default insurance with strengths in technology and
Six Sigma Quality to deliver innovation to the mortgage marketplace.
Additional information about Genworth Financial Canada is available at www.genworth.ca, by calling the National Underwriting Centre toll free at 1-800-511-8888 or through mortgage lenders
