Applying for a mortgage if you're a recent immigrant...

While some move to Canada to be with family members or for gainful employment, many others emigrate here to escape difficult situations in their home nations. Regardless of the motivation for moving, owning a piece of property is both a huge point of pride, and one of the most sought-after components of establishing a home in a new country.

But obtaining a mortgage in Canada for the first time can be a tricky undertaking without the right guidance and knowledge. There are several important points for new Canadians to take note of if they plan to purchase property in the near future.

You're considered a new arrival to Canada during your first five years in the nation, and you will be eligible to obtain a mortgage if you have your permanent resident card, or if you hold a work visa.

That said, if your hope is indeed to purchase property, it's important to start establishing a financial and credit history in Canada as soon as possible. You need at least six months to one year to be able to create a history that can be evaluated by a bank or financial institution.

"One of the most important things for someone new to the country is their credit history; obviously when they arrive they won't have a credit report, so it's crucial that they start building a history," said Monique Noble, mortgage broker with Intelligence Hypothécaire.

"The scary thing is that new arrivals are often not told or informed about the simple things like this that they can do to help them obtain a mortgage."

Noble has several other suggestions for how newcomers to Canada can get started on the path to home ownership.

"They should open a bank account in order to have their pay cheque deposited," she said.

"If they have an apartment or rental unit while they're saving to buy, they should keep rent receipts and not pay cash."

The same holds true for utility bills, Noble added: "Pay them on time and keep the documents."

Getting a prepaid credit card is another great way to establish a credit history, and demonstrate responsible financial habits.

"Keeping up-to-date records on all of these things shows your financial activities which will help banks when you apply for a mortgage," she said. "I can't stress enough the importance of being able to show documented spending and payment behaviour." While mortgage rates for new Canadians are the same as for Canadian citizens, there are some differences when it comes to down payment and documentation requirements.

"For a non-insured loan, a 35 per cent down payment is required, and for an insured loan 10 per cent is required, but in some cases five per cent will be evaluated, too," Noble said.

"The paperwork may be a little more intense; you will be required to show pay slips, a letter of employment, 12 months of bank statements, two utility bills, and proof of down payment."

The bank will also be looking for an obvious intention to stay in Canada.

If you have a work visa that is only valid for six months, that sort of instability won't be in your favour when it comes to getting a mortgage.

Newcomers to Canada are free to apply for a mortgage at any financial institution. But as is true for citizens, working with a mortgage broker can help you find the best mortgage products for your needs, and a lot of perks, too.

"At the moment, for example, I have a bank that will offer $100 to open a new account, a credit card with a $1,000 limit to help establish credit, and a small lock box free for a year - all upon the signing of your mortgage," Noble said. "These are very helpful benefits that can be available to a new arrival obtaining their first mortgage." The process of obtaining a first mortgage can be just as intimidating for newcomers to Canada as it is for citizens without the right help.

"It's a fairly straightforward process, but for anyone buying a home for the first time, it can be overwhelming," Noble said. "It's always ideal to have a support team around you with good and helpful advice.

"If you're thinking of buying a home and are relatively new to Canada, consult a mortgage broker in order to get helpful information of what will be required when you are ready to buy in order to be prepared to realize your dreams of home ownership."