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Any person who acquires real estate in Canada can apply for private home loans in Canadian financial organizations. However, although the system of private home loans in Kitchener is well developed, each applying for private loans is considered individually.
For those, who live and work in Canada, taking into account such factors as credit rate (the amount of points which reflects competent use of credits in the past and the presence or absence of overdue payments in any walk of life earlier), the stability and size of income, payments on existing home loans and etc.
The minimum initial contribution of private home loans as well as Kitchener mortgages shall be 5% of the purchase price (in some cases the money for a down payment can be borrowed). The stability of wages is a very important factor while choosing private home loans, so to the owners of their own businesses and those who operate on a commission basis; banks can apply different requirements from to those who work for a salary and have a solid history of work in their specialty.
Somewhat different is the attitude to the new immigrants who want to get the home loans. This category includes those who have lived in Canada for less than three years. They may not to have income and they may have not a credit history. In some cases, banks may classify as new immigrants even those who are in the country up to 5 years (for example, if the client is a professional and is working on his diploma confirmation – this category includes engineers, doctors and some other experts) and even up to 10 years. As a rule, for the new immigrants, the minimum initial contribution in private home loans must be at least 25% of the purchase price.
Non-residents of Canada (those who do not live in Canada permanently), and which also include tourists, students and employees of foreign diplomatic missions can get private loans in Canada. Although each case is considered individually, it can be expected that the banks will want to see an initial payment of at least 35% of the purchase price. When a loan goes to non-residents, some banks may also require that at the Canadian bank account at the time of purchase was the amount which is sufficient to cover loan payments and property taxes for the next 2-3 years.
In the separate category are foreign workers who are in Canada on a work visa. According to experts from Canada Wide Financial offering private home loans, whichever category of customers you belonged, the bank will also be interested in what you want to buy. For this purpose, the bank may request the documentation of the transaction and (or) make an independent real estate appraisal, to make sure you do not overpay for something that actually costs less.
We would like to once again draw attention to the fact that although above outlined the general principles of qualification for loans, in this area everything is very, very individual and the all your questions can be answered only qualification finance specialist.
Michael Sanduso lives in Toronto, Canada. He is a freelance writer and editor, tech geek, and stay at home father.