Welcome!
Canada and US have many similarities in Culture but also many differences in structure. Here are some things you should know:
CANADA HAS MANY ACTS THAT REGULATE OUR FINANCIAL SECTORS. Our powers of law making are different when it comes to the process of making laws and how powers are distributed. So never compare, it is apples to oranges.
Bank Mortgage Specialists are not Mortgage Brokers. They are bank employees and do not have a licensed or fiduciary duty to you. New To Canada requires expert advise and insight that the bank employees are not licensed to do. The Bank Act allows bank employees to operate under different rules than a licensed mortgage broker who is under legislation and regulated by the OFSI.
The majority of our mortgages are amortized for payment purposes but the contracts with the lenders themselves revolve around terms. Terms can range from 1-10 years. The majority of terms are based on 5 years as our interest act section 10 protects borrowers from long high interest charges. (For more information involves a history lesson which are available in other posts and resources.)
Credit Worthiness as a newcomer to Canada will be 0. However US Credit reports can be requested by your broker and as mortgage brokers are unique to the bank employees as we have the ability to Dispute and manage your credit in rough times as it is built into our mortgage licenses. There are 5 main attibutes to credit worthiness,
- Character: Your history and reputation for paying debts, reflected in your credit score, credit report, and payment history.
- Capacity: Your ability to repay the loan, assessed through income, existing debts (debt-to-income ratio), and stable employment.
- Capital: Your own financial investment or net worth (assets minus liabilities), showing personal commitment (e.g., down payment).
- Collateral: Assets you pledge (like a home or car) to secure the loan, which the lender can seize if you default.
- Conditions: External factors like the loan's purpose, the economy (inflation, interest rates), and the specific industry or market environment