New to Canada Mortgage

New to Canada – Insured

This policy applies to customers who have immigrated to Canada within the last 60 months, and are looking for an insured mortgage but do not have established Canadian Credit Bureau history.

For customers who have worked or studied in Canada, have applied for permanent residence, and already have a Canadian credit history, our regular policy will apply.

Properties allowed:

Purchase only • Maximum 2 units where one unit is owner occupied principal residence
New Construction
Resale

Properties not allowed:

Insured Business for Self
Cottage
Second Homes
Rental Properties
Non-owner occupied properties

Borrower Qualifications

Must have immigrated/relocated to Canada within last 60 months.
3 months minimum full time employment in Canada.
Borrowers transferred to Canada under relocation programs are considered on an exception basis.
Guarantor’s Income Confirmation required (if applicable).
Required Documentation
Purchase and Sale Agreement including all addendums, and MLS listing (if applicable).
Standard income confirmation.
Confirmation of Landed Immigrant Status (Permanent Residency Card).
Preceding 12 month history of rent paid in Canada and 12 month history of 2 regular obligations (e.g. monthly).
Proof of Borrower Meeting Rental and Regular Obligations:
Rent – Supporting Bank Statements and letter signed by landlord indicating:
Date the tenant moved in,Monthly rent amount, Amenities included in the rent, Payment history

Regular Obligations:
Copy of bill payment confirmation from bank statement/paid invoices

Mandatory: Payments must be timely. No late payments.

obligations, LTV is limited to 90% and the following may be accepted:
Satisfactory Letter of Reference from a recognized Financial Institution outlining history and past credit experience. Must be dated within 60 days of approval, or;
6 months of Bank Statements from a Primary Account (living expenses such as rent and food flowing through the account), with no evidence of financial difficulties (ie. no NSF items).

Total Debt Service (TDS)

42% with Credit Score < 680 44% with Credit Score >/= 680
All debts outside country must be included in the TDS
Rent earned outside of Canada is to be excluded from calculation

Gross Debt Service (GDS)

35% with Credit Score< 680
39% with Credit Score >/= 680

Down Payment

All Down payments must be verified
When LTV is 95%, down payment must come from borrower’s own resources
When LTV is less than 95%, Down payment can come from a Corporate Relocation Subsidy or be gifted by an immediate family member.
Maximum purchase price of $1,000,000

Amortization

Up to 25 years

New to Canada – Conventional

This policy applies to customers who have immigrated to Canada within the last 60 months, and who cannot provide confirmation of income meeting TD conventional income confirmation guidelines but otherwise demonstrate a strong profile.

Note: For customers who have worked or studied in Canada, have applied for permanent residence, and already have a Canadian credit history, our regular policy should apply.

Product Purpose Property

Eligible

Conventional Mortgage
Fixed Rate
Closed VIRM
Cashback mortgages permitted
Purchase
Refinance
Single Advance
Owner occupied (or occupied by an immediate family member) up to 4 Units
New Construction
Resale

Ineligible

Non Residents
Temporary Residents
Cottage
Non-owner occupied properties
Maximum Aggregate Mortgage Amount (Total of all Mortgages)

Properties in ONT:

$1,000,000
Up to 2 properties

GDS/TDS:

No GDS or TDS test is required for conventional financing.
Note: Income not required and instead applicant must provide evidence of the equivalent of 12 months of mortgage principal, interest and tax payments in liquid savings in Canada (this is in addition to the applicants 35% down payment).
Maximum LTV -Lesser of 65% or Sliding Scale, no exceptions.
Amortization – Maximum 25 years.
Appraisal – Full appraisal is required.
Down Payment – Minimum down payment $40,000, from own resources, cannot be borrowed or gifted.
Closing costs must be confirmed.
Confirmation funds are in Canada before funding application.
No exceptions permitted.

Borrower Qualifications

Must be resident of Canada with Landed Immigrant / Permanent Resident Status or confirm application for Permanent Resident Status has been received by Immigration Canada.
Must be Landed Immigrant/ Permanent Resident no more than 5 years.
Applicant(s) must provide evidence of 12 months mortgage principal, interest and tax payments (PIT) in liquid savings in Canada.
A minimum 30 days savings history of the 12 months PIT is required.
Confirmation of Landed Immigrant Status (Permanent Residency Card).
If customer files taxes in Canada, copy of most recent Notice of Assessment to confirm no outstanding taxes owing.
Note: The New to Canada policy is to assist applicants that have not been able to establish a Canadian credit history. If an individual is deemed new to Canada however in that time has shown a poor credit repayment track record in Canada, they should not be considered under this program.

Temporary Residents

Applicants under these guidelines will typically be employed by established, well respected companies who are being relocated to Canada for a specific period of time for work purposes.

Product Purpose Property

Eligible

Conventional Mortgage
Fixed Rate
Closed VIRM
Purchase • Owner occupied –
maximum one unit
New Construction
Resale

Ineligible

Refinance
Equity Take Out
Purchase with Improvement
Refinance with Improvement
Rental
Multi-unit

LTV

Maximum 80% for Conventional Mortgage Financing subject to Sliding Scale.
Maximum 90% for Insured Financing. Down Payment Minimum of 10% from borrower’s own resources.

Amortization –

Maximum of 25 years where the LTV is greater than 80%.

Debt Servicing

Maximum GDS Ratio

35% where beacon score is less than 680.
Up to 39% where beacon score is 680 or greater.

Maximum TDS Ratio

42% where beacon score is less than 680.
Up to 44% where beacon score is 680 or greater.

Credit Bureau

For CMHC insured deals, CMHC will obtain copies of the international credit bureau.
For Conventional and Genworth insured deals, the Underwriter will review foreign credit bureau reports, as provided by the Broker.
The Underwriter will forward the credit bureau to Genworth for insured mortgages.
There may be cases where they are cost-prohibitive or take too long; in such cases, a letter of reference from the financial institution where the customer currently has borrowings will be required. – The Supplier will review and verify the validity of all reference letters for Conventional requests and forward the letters of reference to the insurers for review for all insured requests.

Borrower Eligibility

Standard borrower eligibility criteria apply.
Customer must have relocated to Canada within the last 24 months, must be eligible to work in Canada and must be employed in Canada for a minimum of 3 months. Confirmation of valid Canadian Employment Authorization Form (Work Permit form 1442).
Program not available to diplomats or foreign political parties that do not pay income tax in Canada (in the event of a foreclosure TD is unable to enforce against a diplomat).
Must confirm sale of principal residence in their home country, or be able to carry both properties.
Income Confirmation
Confirm income as declared on the application, by letter of employment indicating length of contract in Canada and no probationary period.

Non-Residents

Applicants under these guidelines do not reside in Canada.

Maximum exposure of 3 properties per non-resident investor.

Product Purpose Property

Eligible

Conventional Mortgage
Fixed Rate
Closed VIRM
Purchase
Refinance
Transfer In
Rental Properties up to 4 units,
Recreational properties meeting conventional standards.

Ineligible

Cashback mortgages not permitted
Purchase with Improvements
Refinance with Improvements

LTV

Maximum 65% LTV subject to Sliding Scale
No exceptions to LTV are permitted

Appraisal Requirements

Full Appraisal Required

Amortization

25 years

Debt Servicing

All debts including housing costs from principal residence are included in the debt servicing calculations
Standard debt servicing calculations applies.

Maximum GDS Ratio:

35% where beacon score is less than 680
Up to 39% where beacon score is 680 or greater

Maximum TDS Ratio:

42% where beacon score is less than 680
Up to 44% where beacon score is 680 or greater

Credit Bureau
Satisfactory international credit bureau OR satisfactory Letter of Reference from Bank in country of origin where customers currently have borrowings.

Income Confirmation – Standard income confirmation is required.