I'm a newcomer to Canada and I'm planning to buy a house sometime down the line in Ontario. While browsing through various websites and consulting with a few realtors, I came across various legal requirements that one must fulfill in order to be approved for a mortgage.
- For newcomers, is there a stricter requirement of providing a higher proportion of downpayment (>20%) in absence of a 2-year old credit/tax history?
- Is there any aging requirement of how long the downpayment money should be available in a Canadian bank account before the mortgage application? I read that lenders prefer that the money be at least 30 days in the account before the approval.
- What if the downpayment amount is to be given as a gift? Does it require similar aging in a Canadian bank? Also, lenders may require upto 90 days of bank statements of the person providing the gift (especially if the money is sourced from outside Canada)?
- Are gifts from in-laws considered as valid?
- What are the types of stress test that lenders typically perform on a mortgage application?