# Discriminatory mortgage rates for non canadians?



## born_expat (Mar 18, 2011)

Hi everyone

Here in the Netherlands, mortgate rates are higher for non EU citizens (like Americans, or Australians, for example). 

Do you know if the same is in place in Canada, this time working to the disadvantage of EU citizens?


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## Auld Yin (Mar 10, 2009)

born_expat said:


> Hi everyone
> 
> Here in the Netherlands, mortgate rates are higher for non EU citizens (like Americans, or Australians, for example).
> 
> Do you know if the same is in place in Canada, this time working to the disadvantage of EU citizens?


One's citizenship is irrelevant in Canada in respect to mortgages.


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## born_expat (Mar 18, 2011)

Wow, now that's GREAT news!


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## gringotim (Jan 5, 2011)

And FYI, you will probably get a way better rate using a mortgage broker than going directly to the bank, at least that has been the case with myself and everyone I know who has used a broker, ie; me niece went to her bank and was quoted 4.7%, the broker got it for her at 3.5%, and guess who the morgtage was with, thats right, the bank that originally quoted her 4.7%. A difference of 1% will save you thousand$ and thousand$ over the course of the mortgage. Check it out, it costs you nothing, and can save you thousands.


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## gringotim (Jan 5, 2011)

Auld Yin said:


> One's citizenship is irrelevant in Canada in respect to mortgages.


But someone without established credit in Canada, like a new immigrant, may have to pay a higher interest rate, because without a good credit score like in the 700 to 800 range, there aren't alot of morgtage companies willing to take the risk,.


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## Auld Yin (Mar 10, 2009)

gringotim said:


> But someone without established credit in Canada, like a new immigrant, may have to pay a higher interest rate, because without a good credit score like in the 700 to 800 range, there aren't alot of morgtage companies willing to take the risk,.


For institutional mortgages there are no special (higher) rates for immigrants. The major banks/credit unions may regard new immigrants as a higher risk therebye turning the borrower to non-institutional mortgagors. Their lending criteria is different and it would be due to risk and not citizenship.


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## born_expat (Mar 18, 2011)

Auld Yin said:


> For institutional mortgages there are no special (higher) rates for immigrants. The major banks/credit unions may regard new immigrants as a higher risk therebye turning the borrower to non-institutional mortgagors. Their lending criteria is different and it would be due to risk and not citizenship.


Mmmmh, I see. I think the only for me to find out is to do a market survey when the time comes. If it all happens (my dreaded appointment with Canadian HR is tomorrow, with me good luck, btw), then we wouldn't even contemplate buying a house before/unless/if (disclaimer-city, here) we get a permanent permit. So I guess I can worry about mortgages, etc. a little further down the line. 

It's tough to assess what's immediately relevant and what's not, when doing a 'feasibility study' when you contemplate immigrating somewhere.


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## WhiteRose (Nov 27, 2008)

Sorry to butt in but while you are on the subject can you get a mortgage in Canada whilst on a TWP while the PR app is being processed or do you have to hold at least PR status?

Thanks 
Rxx


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## born_expat (Mar 18, 2011)

WhiteRose said:


> Sorry to butt in but while you are on the subject can you get a mortgage in Canada whilst on a TWP while the PR app is being processed or do you have to hold at least PR status?
> 
> Thanks
> Rxx


Ooooh, good question. I wanted to know that too. Because the PR could take a while, right?


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## Auld Yin (Mar 10, 2009)

born_expat said:


> Ooooh, good question. I wanted to know that too. Because the PR could take a while, right?


You can but some lenders are not too enthused anout it. If you have a substantial deposit, say 35%, then it's probably doable.


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## born_expat (Mar 18, 2011)

Auld Yin said:


> You can but some lenders are not too enthused anout it. If you have a substantial deposit, say 35%, then it's probably doable.


35% deposit on a house! Forget it. So the lenders would be more amenable to PR holders, right?


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## Auld Yin (Mar 10, 2009)

born_expat said:


> 35% deposit on a house! Forget it. So the lenders would be more amenable to PR holders, right?


Well, yes. They have permanent status and don't depend on a job, per se.


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## born_expat (Mar 18, 2011)

OK, and just to be 150% sure: there are no (official or officious) discriminatory rates for PR permit holders in comparison to regular Canadian Citizens, right?


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## Auld Yin (Mar 10, 2009)

born_expat said:


> OK, and just to be 150% sure: there are no (official or officious) discriminatory rates for PR permit holders in comparison to regular Canadian Citizens, right?


That is correct.


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## born_expat (Mar 18, 2011)

Fantastic, thanks! 

Sorry about the repeat questions, he, it's just sooooo much to take in.


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