I’ve mentioned it over and over again that it pays to get the right mortgage advice from the beginning. Especially, if your situation is unique, for example, newly landed immigrant or currently on work permit.
Last week I was able to secure mortgage financing for a client who is currently on a work visa with as little as 5% down payment. Interestingly enough, his own bank has told him that “no other lender would provide financing to him with only 5% down payment." If he hasn't reached out to me, he would have continued renting for anther year or so.
Yes, you can still purchase a home while you are on work visa even though you don’t have permanent residence status. There are several lenders that will provide financing for applicants on work visa (permit) with as little as 5% down, regardless of the work permit expiry date, provided the following conditions are met:
Any additional questions, feel free to call me at 647-893-2535
or email me firstname.lastname@example.org
Can You Really Walk Away from Your Mortgage? Here is more on personal recourse and insured mortgages
As we all know, there are 3 mortgage default insurance companies in Canada - CMHC, Genworth and Canada Guaranty. Every borrower will pay mortgage default insurance premium when buying a home with less than 20% down payment to protect the lender.
In the event when a lender suffers a loss, they will make a claim to the default insurer:
Even though the default insurance company will cover the lender’s loss, with the above deductible were applicable, the default insurer can, and will, in turn pursue the borrower personally for the deficiency, hence “personal recourse”. The insurer would likely sue the borrower for any losses they have to cover, so if the borrower has any assets, the insurer will go after him.
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