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Home Trust Stories: How a mortgage broker helped a newcomer purchase his first home in Canada

As more newcomers take their first steps towards settling in Canada, many aim to buy their first home in their new communities.

This includes Manjit[1], a permanent resident in Alberta. Originally an engineer from South Asia, Manjit came to Canada intending to buy a home in his new city of Calgary. However, he found the process to be more challenging than he expected.

In the first part of this series of real customer stories, we look at Manjit’s homeownership journey and how working with a broker willing to listen to his story allowed him to find the right solution for his unique financial circumstances as a newcomer to Canada.

Who is a newcomer to Canada?

Statistics Canada (StatCan) defines a newcomer as a permanent resident (also known as a landed immigrant) who “had been in Canada for five years or less.” Data from Immigration, Refugee and Citizenship Canada (IRCC) shows that the country has welcomed more than 437,120 new permanent residents across 2022.

Many newcomers arrive in Canada ready to enter the housing market, often having significant savings towards a down payment. In fact, a Royal LePage study from 2019 found that 75% of newcomers “arrive with savings to help purchase a home.”

Manjit was one of these newcomers, having sold his property in his home country before moving to Canada. He intended to use the sale proceeds as a down payment for a house in Calgary.

Encountering challenges as a newcomer

However, Manjit encountered difficulties when applying for a mortgage from a traditional lender. Having only recently been hired as a warehouse worker, with no credit history in Canada and little income to service the loan that he needed, traditional lenders at bigger banks could not offer him a mortgage solution. Given these circumstances, Manjit decided to go with a mortgage from a private lender, which wasn’t ideal because it involved a high commitment fee and higher interest than a traditional mortgage lender would offer.

Overcoming hurdles with a mortgage broker

By the time his private mortgage was up for renewal a year later, Manjit had taken significant steps to improve his situation and, more importantly, found a mortgage broker willing to listen to his story.

Manjit shared with his broker that he was able to increase his credit score and was taking extra engineering courses at night to re-launch his engineering career in Canada and improve his income. From Manjit’s story, his mortgage broker realized that an alternative option from a lender committed to seeing the story behind a mortgage application could be the right solution for his circumstances. It was then that he brought Manjit’s unique financial story to us at Home Trust.

Listening to Manjit’s story and looking through his supporting documents, it wasn’t long before Home Trust was able to help him improve his financial situation and continue building his credit score by offering our Classic alternative mortgage and Equityline Visa solution This was possible because, while some saw Manjit’s mortgage application, Home Trust and his mortgage broker saw his story.

If you’re a newcomer looking to buy your first home in Canada, a mortgage broker will be able to listen to your story and connect you with the right mortgage solution for your needs – including alternative options such as those offered by Home Trust. Learn more about our mortgage products by visiting hometrust.ca/mortgages.

The information, materials and opinions contained in this Blog are provided for our information only. This Blog does not constitute legal, financial or other professional advice and you should not rely on it as an alternative to specific advice based on your particular circumstance. This Blog contains links to third party websites. These links are provided for information and convenience; Home Trust does not endorse the content of any third party website, and it makes no representation or warranty as to the information on such third party sites. By clicking on any link to a third party site, you leave Home Trust’s website and do so at your own risk. Home Trust disclaims all liability for any damage or loss that results from your access to or reliance on information contained in this Blog or any third party site.

[1] Based on real customer stories but details altered to protect customer identity.

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