Tag Archives: new to canada

New Canadians’ Mortgage Guide

Starting a new life in Canada? Buying your first home is one of the best ways to put down roots and establish yourself in your new country. According to Genworth Canada’s 2017 First-Time Homeownership Study, a full 19% of first-time homebuyers were born outside of Canada, 10% of whom arrived in the past decade. Wondering how to start your journey to homeownership? Read on for our New Canadians’ Mortgage Guide.

Step 1: Study your options

Responsible homeownership is about buying a home you can afford, so for starters, take a look at our library of articles about affordability. Read up on topics such as how to choose the right home for your budget and learn about financing options for new Canadians.

Genworth Canada’s New to Canada program can help you buy your first home with a down payment of as little as 5%. See how it works in this short video.

Share the knowledge with your family, too. Our New to Canada microsite offers content in Chinese, Punjabi, Korean, Spanish and French.

Step 2: Establish credit history in Canada

Banks and other lenders look at your credit score to determine your level of financial responsibility. Your credit score is determined by your financial behaviour: Do you pay your monthly bills (including cell phone) on time, or have you skipped payments? Do you have credit cards or lines of credit, and if so, how much do you have left to access?

TIPS: Never skip a payment (always pay at least the minimum),  and keep your credit utilization– the amount of your credit limit that you actually use–low. Don’t carry a balance over 30% of your credit limit; the lower the better.

The better your credit score, the more likely you are to be approved for a mortgage – and at a more favourable interest rate.

Because your Canadian credit history starts in Canada (foreign credit history isn’t taken into consideration by lenders), it’s important to establish positive patterns as soon as possible:

  • Open a savings or chequing account at a Canadian bank or credit union, and use it for your payroll deposits, as well as withdrawals and transfers.
  • Apply for a small loan or credit card. Make some purchases each month, and pay off the balance or make regular payments each month, to prove you are responsible with credit.

Step 3: Build your savings

Use a separate high-interest savings account, investment account or set aside funds in a TFSA (tax-free savings account) to build toward your home down payment. You can purchase a home with as little as 5% down, but in high-demand cities like Vancouver, Calgary and Toronto, a competitive real estate market means it can take longer to save for an adequate down payment.

TIP: First-time homebuyers can borrow RRSP funds to help towards a down payment under the federal government’s Home Buyers’ Plan.

Check out our Financing hub for an entire section of articles about saving for a down payment, including this video on how to set financial goals.

Step 4: Research neighbourhoods and communities

While you’re saving and working on building your credit history in Canada, take some time to daydream! Checking out neighbourhoods and communities where you might like to live is a great way to stay motivated. It can also help ensure that you have a smooth transition to your new home.

Think about where you’d most like to live. Would you prefer the excitement of a big city, the quiet family vibe of the suburbs, or the natural splendour of the rural countryside?

Research the amenities you’ll need, whether that’s public transportation, walkable communities, schools, places of religious worship, shops and other priorities.

Consider making weekend excursions to potential communities to explore the local amenities. Since Sunday afternoons are a traditional time for open houses, think about scheduling your visits so you can squeeze in a couple of house or condo tours, too.

Step 5: Start assembling your real estate team

Finally, as you get closer to house-hunting time, start building your real estate team. Ask friends, colleagues and neighbours for recommendations on professional REALTORS®, real estate agents, mortgage specialists, real estate lawyers and home inspectors.

It’s important to hire professionals who are familiar with the real estate market in your preferred neighbourhood or community. Interview a few candidates and research customer reviews online, so you can find the right pros to help you embark on your journey to homeownership in Canada. 

Source: Homeownership.ca

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New to Canada? Three tips to start your finances off right

New to Canada? Three tips to start your finances off right

Moving to a new country can be overwhelming but starting your finances off right can make all the difference as you build your new life.

 

As you begin your new life in Canada, here are three tips can get you headed in the right direction.

  1. Connect with resources that can help your family get settled.

There can be so much to do when you arrive in Canada—find a home, a job, schools, a bank—it can be hard to know where to start.

Scotiabank’s Newcomer Handbook gives you quick and easy access to things you need to know as you build a new life here. It’s available for free online and includes advice on:

  • 10 Things You Need to Know About Banking in Canada
  • Top 10 Tips for Settling in More Easily
  • Government Information and Assistance
  • Jobs and Careers
  • Health, Safety and Your Rights
  • Education and Training
  • Entrepreneurship
  • Embassies in Canada

After friends and family, a good place to begin when looking for a job is the Service Canada website as well as online job boards. If you need Canadian work experience, consider volunteering in your community.

The federal government also offers other newcomer support, to help get a language assessment and finding a language class, finding a place to live, signing up kids for school and learning about community services.

Your province is responsible for providing services like health care. All Canadian citizens and permanent residents are eligible for public health insurance, which provides most services free of charge (health care in Canada is paid for through taxes). Information about your province’s health care program is available through the government of Canada website.

  1. Learn how to manage your money.

Building a relationship with a financial advisor at a bank in Canada is an important step in creating your new life. Start by visiting your local branch to open chequing and savings accounts and consider applying for a credit card. Your advisor can help you understand your needs and suggest the products that are right for you and your family. Check out the popular credit cards that the Scotiabank StartRightprogram has to offer. With more rewards than any other bank, you’ll be sure to find a card that meets your needs and rewards you in the process.

A credit card not only lets you charge purchases rather than pay cash, it also helps you establish a credit history in Canada. This will be crucial when you need to get a loan to start a business or buy a home. Banks learn a lot about your financial health by accessing your credit history and use it to decide whether they should lend you money.

More important information about credit history:

  • It’s your responsibility to review your credit report and ensure it doesn’t contain any errors
  • Try to pay your bills on time and in full to avoid a negative rating
  • Make sure you understand the terms and conditions
  • Never go over your credit limit
  • Make sure to contact local credit agencies if you need help managing debt
  1. Plan for your future.

Before long, you’ll find that you and your family have settled into your new life in Canada and will start thinking about buying a home or car, putting money aside for your children’s education and investing for your retirement. Having a financial plan is an important element to help you take control of your finances.

One of the first things you can do is evaluate your day-to-day cash flow and think about spending only on things you really need or value. Cutting a few dollars here and there from your daily expenses, even if it’s just $5 a day, can add up to big savings year over year. Where can you start? Cut out your daily luxury coffee, bottles of water, or lunch out once a week. If you saved and invested that daily $5, in 20 years you would have more than $50,000!1

A “Mapping Tomorrow” session with a Scotiabank advisor will go a long way in helping you achieve your unique goals in Canada. Want to learn more? Our expert advisors can offer practical advice and smart solutions to help you have the life you want in Canada.

Source: by Scotiabank  Learn more about Scotiabank’s StartRight Program.

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