David, a newcomer to Canada, immigrated 8 months ago and has secured a stable, full-time job in Vancouver with an annual salary of $80,000. He has no Canadian credit history but did provide a letter from his bank in Germany confirming a strong banking relationship and timely loan payments over several years. He wishes to purchase a $600,000 townhome with a 20% down payment. What is the most appropriate action for his mortgage broker, Emily?

Question: David, a newcomer to Canada, immigrated 8 months ago and has secured a stable, full-time job in Vancouver with an annual salary of $80,000. He has no Canadian credit history but did provide a letter from his bank in Germany confirming a strong banking relationship and timely loan payments over several years. He wishes to purchase a $600,000 townhome with a 20% down payment. What is the most appropriate action for his mortgage broker, Emily?

Answer options: ✅ Emily should explore lenders that offer New-to-Canada programs, which may accept international credit references and alternative forms of credit adjudication.

• Emily must advise David to wait until he has established a minimum of two years of Canadian credit history before applying for a mortgage.
• Emily should only pursue private lenders for David, as no institutional lender will consider an application without Canadian credit history.
• Emily should instruct David to obtain a Canadian credit card and make payments for 12 months to build his credit score first.

Correct answer: Emily should explore lenders that offer New-to-Canada programs, which may accept international credit references and alternative forms of credit adjudication.

Explanation: Many lenders, particularly those participating in CMHC/Sagen/Canada Guaranty New-to-Canada programs, offer specific guidelines for immigrants, which may include accepting international credit bureaus, rent payment history, or utilities as part of credit adjudication.