Michael, a new immigrant to Canada with sufficient income from his professional career in Vancouver for the past 6 months, is applying for a mortgage. He has a 15% non-borrowed down payment and limited Canadian credit history, but excellent credit from his home country documented by a credit report and bank statements for the past two years. Which of the following is most likely to be a condition for his mortgage approval through a mainstream lender?

Question: Michael, a new immigrant to Canada with sufficient income from his professional career in Vancouver for the past 6 months, is applying for a mortgage. He has a 15% non-borrowed down payment and limited Canadian credit history, but excellent credit from his home country documented by a credit report and bank statements for the past two years. Which of the following is most likely to be a condition for his mortgage approval through a mainstream lender?

Answer options:

• A. A larger down payment of 20% or more, regardless of foreign credit.
• B. Co-signer with established Canadian credit history.
• C. A letter of employment and 3-months of Canadian bank statements. ✅ D. Demonstration of foreign credit history and minimum residency period, alongside stable Canadian employment and down payment source verification.

Correct answer: D. Demonstration of foreign credit history and minimum residency period, alongside stable Canadian employment and down payment source verification.

Explanation: Lenders for New-to-Canada programs typically require a demonstrated foreign credit history (e.g., international credit report, letter from foreign bank), proof of stable Canadian employment/income, proof of down payment from a recognized source, and a minimum residency period, usually 3-12 months. This aligns with CMHC/Genworth/Canada Guaranty guidelines.