Yahoo Finance What newcomers to Canada need to know about mortgage shopping
Whether you're new to Canada or planning to move here in the near future, you're likely eager to start your new life. But navigating the Canadian mortgage landscape can seem daunting, especially if you're new to the process. Luckily, we’ve partnered with HSBC to offer you tips and advice on how to shop for a mortgage as a newcomer.
What to look for when choosing a mortgage provider
Once you’ve saved enough for your down payment and closing costs, you’ll need to find a mortgage provider to finance your loan. It's important to consider several factors when choosing a mortgage provider. Here's what you should look for:
Interest rates
A mortgage provider's interest rate is one of the first, and most important, factors to look at when securing a mortgage. Lower interest rates mean you'll pay less over the lifetime of your mortgage, so it’s always wise to comparison shop instead of going with the first provider you find. Be sure to shop around so you can feel confident you’re getting a competitive rate. Worth noting: HSBC offers some of the lowest mortgage rates on the market in Canada, so you’ll want to make sure they’re on your list.
Pre-approval process
Before you begin your house-hunting journey, it's a good idea to get pre-approved for a mortgage first. This will help you know exactly how much you can afford to spend and narrow down your options so you don’t waste time on properties that are out of your price range. Having a pre-approval letter from a reputable mortgage provider like HSBC will also give you a leg-up when making an offer, as it shows sellers you have the financial means to buy their home.
Terms and conditions
There are several terms and conditions associated with mortgages that can impact your financial situation. These include the mortgage term (i.e. how long you’re required to stay with the lender), the type of interest rate (fixed or variable), plus any penalties for prepayment or early termination. Always make sure to ask questions to ensure you know exactly what you’re agreeing to. You’ll also want to review all the terms and conditions with your lawyer for further assurance and peace of mind.
Specialised lending programs
It can be challenging setting up your finances in a new country, especially if you haven’t established a credit history in Canada yet. When comparing mortgage lenders, be sure to ask if they approve mortgage loans for newcomers—including ones who don’t have a Canadian credit history. The good news is that there are lenders like HSBC who not only recognize and value your credit history from your home country, they’ll also help you set up a financial foundation in Canada (either before you move or after you arrive), ultimately easing your transition.
HSBC offers a New to Canada Mortgage specifically designed with newcomers in mind, and has a team of mortgage specialists who can help ensure you have all the information you need to make your big move a smooth one. They also offer a dedicated Newcomers Program, which can help get you set up with a Canadian chequing account and HSBC Mastercard, in addition to other helpful services and offers.
Special offers
Mortgage providers typically have limited-time offers you may qualify for, depending on your specific situation. Through Sept. 3, HSBC has an innovative special offer that allows you to earn travel rewards based on your mortgage amount. For every $200,000 in mortgage balance on new, eligible mortgages, you’ll earn 200,000 points (up to 1 million points!), which translates to up to $5,000 in travel rewards.
This unique offer is great news for homeowners of all stripes, but it’s especially intriguing for newcomers to Canada. You can use your travel reward points to either hop on a plane to visit your family back home, or book them a flight so they can come to Canada to celebrate your new home with you in-person, making these points a wonderful housewarming gift from HSBC. These rewards are also extremely flexible: Points are redeemable for any travel-related expense, including hotels and car rentals, and there are no blackout dates, meaning they can be redeemed at any time. Points can also be redeemed for any other reward available, even to make a payment for your new mortgage, through the HSBC World Elite Rewards program.
Knowledgeable specialists
Whether you’re new to the mortgage process in general or just new to the process in Canada, you’ll want to make sure you have an experienced mortgage advisor in your corner. That’s why it's essential to work with a dependable mortgage provider like HSBC, which boasts a team of mortgage specialists who can help walk you through the process every step of the way. Choosing a reputable provider like HSBC gives you the comfort of knowing that you're not just getting the best possible deal, you’re also working with experienced specialists you can trust. Their knowledgeable specialists are available to offer personalized advice tailored to your specific situation, and answer any questions you may have.
Your dream of owning a home in Canada can become a reality
It may seem overwhelming to purchase a home in Canada as a newcomer to the country, but with a little planning and research, you can make your dreams a reality. Take the time to think about your options and make an informed decision based on your unique needs.
Choosing HSBC as your mortgage provider will give you the expert mortgage advice you need, now with the added benefit of a fantastic travel rewards offer that can make it easier to stay connected with your loved ones back home. With HSBC's reputation for excellence and longstanding dedication to helping newcomers, you can plan your big move with confidence knowing you’re in good hands as you begin this exciting new chapter.
