TD New to Canada Mortgage Program – Insured
Customers who have immigrated to Canada recently, may be eligible for a mortgage under the TD Bank new to Canada mortgage program. The insured stream is for customers using less than 20% down payment. Here, the mortgage is insured with default insurance provided by the default mortgage insurers, such as the CMHC. The premium is included in the mortgage balance and as a result, can lower the amount of mortgage a client can be approved for. The benefit being these clients are provided a path to homeownership using less than 20% down payment.
With the TD new to Canada program, clients must show proof of down payment being sourced from own savings such as investments, GICS and employment income. Down payment funds may come from overseas, but a track record of these funds are required per mortgage industry regulators. Immediate family gifts are permitted, too.
In addition to down payment clients are also required to show proof of availability for closing costs. Closing costs are estimated to be at 1.5% of the purchase price. Here is an example Of how down payment and closing costs are calculated on a $500,000 purchase: Clients are required to show 1.5% of the purchase price, which amounts to $7500 and a minimum of 5% down payment, which amounts to $25,000 for a total of $32,500 available for down payment and closing costs at the time of closing.
New to Canada TD Mortgage – Conventional – Non Insured
The new to Canada TD mortgage conventional program applies to New Canada permanent residents or residents of Canada with landed immigrant status.
Please be mindful that non permanent Canadian residents may be subject to a foreign ownership tax of 15% of the purchase price.
This TD mortgage program allows new Canada residents a path to purchase owner-occupied, rental properties, cottages, second properties, new construction and resale properties, as well as refinance products. A higher down payment amount is required from one’s sources. Along with confirmation of liquid assets to cover a portion of the mortgage payment. Clients may not use gifted funds for rentals, and all down payments and availability of liquid assets must come from personal sources – gifted or borrowed funds are not permitted. Examples of liquid assets are cash and stocks, easily liquidated into cash.