Moving to a new country can be a challenge. There can be language barriers, new ways of life and important necessities to figure out. One of those is securing housing.
Statistics Canada said that immigrants account for more than one in five Canadians and that by 2055, immigrants will make up 90 percent of Canada's population growth.
According to a recent poll, 87 percent of new Canadian immigrants didn't know how to apply for a mortgage in their first three months in Canada. In addition, 58 percent don't know how to apply for a credit card and 47 percent don't know how to open a bank account.
The poll also noted that 24 percent of immigrants were surprised by the credit rating system and 23 percent were shocked to not have access to credit immediately.
This lack of knowledge when it comes to getting a home creates an opportunity for mortgage brokers, said Mortgage Broker News. These immigrants are resources for brokers to work with and develop a level of trust with as they help the newcomers navigate the Canadian home market.
How can new Canadians work toward home ownership?
Initially, new Canadians need to establish credit in order to obtain a mortgage. The poll found that 23 percent of immigrants wished they had a better understanding of how to get credit card approval. It's suggested that people apply for a secured credit card as soon as they can once they've entered the country to start establishing their credit. Once they do, newcomers, like all people, should avoid making late payments, as it negatively affects credit scores.
Mortgage brokers can offer advice on how new Canadians can start developing credit and point them in the right directions. This helps the broker develop a relationship with people, which can lead to the home buying process, according to Mortgage Broker News.
In addition to not knowing how to apply for a mortgage, the poll reported that 38 percent of newcomers wished they had a better grasp on local mortgage rules. It can take up to 18 months to establish decent credit, and qualifying for a decent mortgage with good mortgage rates depends on many factors, including a good credit score.
Mortgage brokers can help immigrants check their credit score and then offer advice on how to best proceed for loan applications. Understanding can be especially difficult if there are language barriers for the newcomers. Brokers can help them work past that and find a home. Mortgage Broker News said that most importantly, brokers must do what's best for their new clients, including taking the time to thoroughly explain all important details and make sure their new Canadian clients have a clear understanding of what's occurring.