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Here is some key mortgage advice for newcomers in Canada

Here is some key mortgage advice for newcomers in Canada

One of the major milestones on your newcomer journey to Canada is investing in a home; to do that, you will most likely need to take out a mortgage. To help you learn which scheme is best for you, here is some key mortgage advice for newcomers.

According to the Financial Services Regulatory Authority of Ontario (FSRA), there are three things you need to keep in mind when committing to a mortgage:

  • Private mortgages serve as temporary solutions, typically lasting one to two years until financial circumstances improve. 
  • Planning for the transition back to a traditional lender is crucial, therefore, an exit strategy should be in place to ensure financial stability. 
  • Engaging FSRA-licensed mortgage professionals who can provide expert guidance on the terms and conditions of private mortgages is important.

The advice is part of FSRA’s educational campaign to help protect consumers considering private mortgages, with providing mortgage advice for newcomers an important part of the effort. The campaign educates and empowers consumers to ask the right questions, understand the products being offered, and make informed decisions. The campaign aims to educate diverse Ontarians about their rights and options in mortgage financing.

Also read: BMO NewStart Program for newcomers to Canada

In 2023, FSRA released the annual Mortgage Brokering Sector Supervision Plan. It focuses on Brokerages’ practices to ensure private mortgages are suitable for consumers and consumers understand product features and costs, including consideration of an exit strategy.

“Consumers looking to obtain or invest in a mortgage are facing greater risks due to rising interest rates, inflationary pressures and a housing crisis across the province,” says Antoinette Leung, Head of Financial Institutions and Mortgage Brokerage Conduct.

If you would like to educate yourself on mortgages and search through pertinent mortgage advice for newcomers, please visit the FSRA site for more information

Also read: Life and health insurance advice for newcomers to Ontario

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