Matrixvisa Inc Immigration law practitioner

Renting

Newcomers are advised to bring letters with, from their land lords or banks from their country of origin, to present to local land lords. These documents can show that you have always paid your rent and/or always paid your mortgages. Any document to prove that a new immigrant is responsible and will pay rent will make renting easier. Sometimes local land lords require references and in a market where there is a shortage of rental accommodation, these documents will help. With no credit reference and now rental references it might be a little difficult.

Some newcomers offered to pay one year’s rent in advance – and it was refused because they where not employed. Therefore it is advisable to find employment (even if the wage is low and not in you field) as soon as possible in order to rent a house or apartment.

Immigrants, foreign workers and students is advised to search for provincial legislation about renting. In Ontario a good website that provides valuable information is

http://wwww.geocities.com/torontotenants/

Buying a Home

Having "a place to call your own" will certainly provide you and your family with a secure platform from which they can negotiate the lifestyle adjustments which challenge most immigrants upon arriving in Canada. As in most first world countries, property is an extremely valuable and stable investment, in Canada the property market has had sustained growth for more than 10 years.

The process of buying a home may appear daunting at first but fear not, with the right advice you won't be investing money in somebody else's property (renting) for very long. If you make use of the following services the ride will be a lot less bumpy!

Mortgage Specialists
Mortgage Specialists are paid by the Lending Institution and they do not charge fees for standard mortgage applications. In the event you do not qualify during the first 12 months, Mortgage Specialists will strategise with you on how best to establish lending eligibility as quick as possible. They will also discuss mortgage products should you have the funds to make a sizeable down payment. Whatever means of finance you choose, consider there are approximately 60 Lending Institutions in Canada each with their own specific product, so consult someone who is able to understand your needs and secure the best product accordingly.

It is worth noting that Mortgages in Canada typically carry a term of 5 years or less and are renewed prior to or at the expiry of each term. This renewal process is an excellent opportunity to renegotiate your mortgage via your broker with several lenders who will compete for your business ensuring the best possible product to suit your needs. As per the Credit History section if you wish to "shop-around" for the best rates it is advisable to do so through a broker so as not to affect the credit score you have worked so tirelessly to establish!! (See Credit History section for further details on cons of shopping around yourself.)

For an immigrant, the immediate barrier to purchasing a home is the ability to qualify for a mortgage. Being new in the Canada you will not have had opportunity to establish a Credit History (see section in A-Z of Immigration) which is the primary qualification criteria used by most Banks and Lending Institutions to establish the risk level of a "Borrower". A Mortgage Specialist / Broker however has access to lending programs catering specifically to immigrants in their first 12 months of residence which may qualify you for a Mortgage at competitive rates without a Credit History and only a 10% down payment. The Mortgage Specialist will be able to quickly assess your eligibility and handle all aspects of the application process.

For more information contact Craig Watkins of the Mortgage Centre at pcwatkins@rogers.com or call (905-785-1678 in Canada)

Realtors
A Realtor specialises in assisting in the buying and selling of homes and because they are paid on commission it is in their best interest to find you what you are looking for. As in any industry there are good and bad Realtors therefore the only safe way to distinguish between them is their track record. Ask your friends or family to direct you to a realtor with a good reputation rather than using the one who charges the least commission. If you have no way of being referred to a Realtor then ask your Mortgage Specialist who has a network of Realtors in various areas with whom they have worked with before. Typically you pay for the service you get! Realtors tend to operate in a specific geographic area and therefore it is advisable to use different Realtors if you are looking at properties in various areas.

Buying an existing home can be viewed as follows, but the key is to let somebody else do the work for you.

Step 1.
Establishing how much you are able to spend on a home (Use a Mortgage Specialist / Broker)

Meet with a Mortgage Specialist to establish your lending eligibility
Establish risk profile and discuss various lenders and their product features
Obtain Mortgage "pre-approval" commitment in order to verify purchasing ability and to secure a rate hold from the lender (typically for 90 days)

Step 2.
Choosing the home you would like. (Use a Realtor - known in many G7 countries as an Estate Agent)

Meet with the Realtor/s and produce the "pre-approval" commitment. This indicates to the Realtor that you are serious about purchasing and are not just "window shopping".
Take the time to view an appropriate number of listed homes as the style of housing construction and neighbourhood conditions will be different to what you are used to.
Once you have chosen a home the Realtor will draw up an "Offer to Purchase" contract. The negotiation process in Canada is formal and regulated therefore you need to be guided by a qualified Realtor.
Acceptance of the offer will typically be conditional upon final approval of finance and a house inspection. Some sort of deposit is usually paid to the current owners and held in trust by the Realtor's Company.

Step 3.
The money for the purchase is secured and a solicitor registers the mortgage and transfers the funds.

A full Mortgage application is submitted. All supporting documentation which includes financial records and details of the property being purchased must be submitted at least 2 weeks prior to closing date preferably sooner.
On the "closing day" all legal documents have to be signed in person, funds are transferred and keys are handed over to the new owner. It is important to have a solicitor who is local to the property being purchased to avoid unforeseen traffic delays etc.

Should I Purchase a New Home or an Existing Home?

The number of new home being constructed in Canada every year is astounding. Consider Mississauga, just one of the cities in the sprawling GTA with a population of approximately 650,000. In 1991 the number of constructed "dwellings" was just under 150,000 but during the next 10 years fuelled by a booming economy and various demographic factors a staggering 45,000 new "dwellings" were constructed. Even with the recent slowdown in the economy, the high demand for housing and record low interest rates continues to drive the construction of new settlements that reach deeper and deeper into once tranquil farm country. One of the biggest selling features of a "New Home" is that the initial down payment can be spread out, sometimes over a period of up to 1 year and the lures of "upgrades" make the deals almost too good to be true. Sometimes they are!

There are a number of pro's and con's to purchasing a new construction so professional advice from a Realtor and Mortgage Specialist should most definitely be sought before signing "an agreement to purchase" with any building company.

Consider these elements carefully:

Typically the new home in question has not yet been constructed and your purchase decision is being influenced by a "model" home that always represents the high-end with every available "upgrade".
Once your deposit has been paid the builder has absolute right to delay the occupancy time at his discretion and the building period is influenced tremendously by many unpredictable factors, the biggest one being the weather. Extended winters can delay construction by 3 - 4 months, during which time your temporary accommodation arrangements will need to be renegotiated.
Finance eligibility is determined during an economic climate that may have changed drastically by the occupancy date. A deposit has been paid and you have committed to purchasing the property, but interest rates may have risen or you may no longer be employed. These factors can be catered for in the sale agreement by favour the builder significantly who will no doubt have the upper hand in any ensuing negotiations.
The construction of the actual residence will be completed well before some of the other "peripheries" are in place. Depending on a variety of factors there may be no grass or trees planted in the neighbourhood for up to 1 year. The roads may take equally long to tar and the result of both is that overall living condition can be extremely "dusty" or "muddy" depending on the weather. Staggered occupancy dates often mean that many houses in the complex are still under construction after you have moved in.
New homes take time to "settle" and often any renovations you would like to undertake to enhance the value of your investment have to be delayed up to 3 years.

Having said these things, there are some advantages to purchasing a new home, for instance:

You are able to customise your home to a certain extent and therefore are able to purchase a home that most closely fits your particular preferences.
The increase in the value of any residential property is typically most significant during the first 5 years and therefore given that the construction and location are sound there is often considerable financial reward should you choose to endure the initial discomforts.
New home's typically have unfinished basements and the renovation of this additional living space is one of the most popular means of significantly increasing the value of a residential property.
The construction is guaranteed for a significant period following occupancy and therefore you generally will not have any "surprises" that were undisclosed by previous owners in an existing home.

The golden rule of seeking advice from an independent professional holds true for the purchase of both an existing home and a new construction. Competition always produces the best results for the consumer so be sure to make a market comparison before accepting an offer from either a builder or a lender.

For mare information contact Craig Watkins of the Mortgage Centre at pcwatkins@rogers.com or call 905-785-1678 in Canada

Mortgages

It is advised to first rent and get to know the area before buying. Do some research before signing a mortgage - there is a lot of competition between banks. Some of the websites below might be useful in getting to know the market. Join a discussion group and learn from other consumers and first home buyers. Research before buying!

http://www.mortgagesmadeeasy.com/

http://www.scotiabank.com/cda/content/0,1608,CID516_LIDen,00.html

http://www.mortgagecentre.com/enter.cfm

http://www.canadamortgages.com/

http://dmoz.org/Business/Financial_Services/Mortgages/Canada/

http://www.canadawidemortgages.com/

http://mortgagesincanada.com/ with a discussion group for first home buyers

http://www.canada.etrade.com/mortgage/default.shtml

http://canadacreditcenter.com/mortgage.shtml

http://www.royalbank.com/products/mortgages/

http://www.tdcanadatrust.com/mortgages/index.jsp

http://www.mortgageprequalifier.com/

http://www.searchingcanada.com/mortgage-loans.html