A mortgage broker, Mark, is assisting a new-to-Canada client, Elena, who arrived in Canada six months ago and is employed full-time, seeking to purchase her first home in Halifax. Elena has no Canadian credit history. Mark arranges for a mortgage through a lender participating in the CMHC Newcomer program. What is a key requirement Elena must typically meet under this type of program?

Question: A mortgage broker, Mark, is assisting a new-to-Canada client, Elena, who arrived in Canada six months ago and is employed full-time, seeking to purchase her first home in Halifax. Elena has no Canadian credit history. Mark arranges for a mortgage through a lender participating in the CMHC Newcomer program. What is a key requirement Elena must typically meet under this type of program?

Answer options: ✅ She must provide proof of sufficient financial resources to cover the mortgage principal and interest for a minimum of twelve months, in addition to the down payment.

• She must have a co-signer who is a Canadian citizen with established credit history and permanent residency.
• She must make a minimum down payment of 35% of the property purchase price.
• She must attend mandatory financial literacy courses in Canada before mortgage approval.

Correct answer: She must provide proof of sufficient financial resources to cover the mortgage principal and interest for a minimum of twelve months, in addition to the down payment.

Explanation: Newcomer programs, particularly those supported by CMHC, often require proof of sufficient financial resources (often 6-12 months of PITI payments) as a compensating factor for the lack of Canadian credit history and limited employment history.