There are some small differences between how mortgages work in Canada and the UK, so I'm sure most people won't know much about them. No matter what kind of home you buy, you will likely need a mortgage. There are many ways to finance a home purchase in Canada that are unique to the country:
Assuming a mortgage means taking over the seller's mortgage, which means you don't have to find your own financing. The rate you agree to may be lower than the rates being offered, and you shouldn't have to pay for an appraisal or other costs to get started. In some cases, you won't even have to qualify for the mortgage. This will depend on the terms that the lender set up front, though. Most of the time, you will have to buy out the part of the mortgage that the current lender has already paid off.
Standard mortgage: As part of a welcome to Canada package, most big banks will lend up to 65% of the appraised value to immigrants before they have a permanent job. This will depend on the person, and some people will obviously not be able to get it. Once you have a full-time job, normal rules should apply to you.
Vendor Take Back: Basically, the seller of the property will lend you some or all of the money you need to buy it, on terms that you and the seller work out together. This is very appealing to people who normally wouldn't be able to get a mortgage. A third party could buy the debt, but the original terms should still apply.
With such a big part of your new life on the line, you should definitely hire a Professional Mortgage Broker. So, all of your financing options can be thoroughly explained, you can get good advice on the best options for your specific situation, and most people can get access to mortgage funds on the best terms.
Under international laws against money laundering, ALL mortgage providers will now need proof of where the money came from that was used to buy a home. When you apply for a mortgage, you must have any closing statements from lawyers who sold you a house, money transfer receipts, savings statements, and bank records. Basically, make sure your money has a "paper trail" that can be checked!
Lastly, most Canadian employers pay every two weeks, so paying your mortgage "bi-weekly" makes sense. This means that instead of making 12 payments a year, you will make 13. This will help you pay off your mortgage faster.
When buying a home in Canada, you need Mortgage Loan Insurance if you borrow more than 75% of the home's appraised value. This is called a "high ratio mortgage."
