Mortgages for Newcomers?

[FLBiker]

This isn't tax related, but it is Canada specific so I'm posting it here.

My wife and I (Americans, Canadian Permanent Residents) are moving to Canada in May / June.  We're currently applying for mortgages with Canadian banks.  So far, CIBC has worked well with us, and RBC kind of has (although they apparently have no secure way to send documents electronically) but I was just looking at rates and it seems like both of these banks are on the high end.

Does anyone have experience using a mortgage broker in Canada as a newcomer?  Is there one you would recommend?  If we need to just suck it up and use one of the big banks for this first mortgage, I can live with that, but if there's a better option I'd like to know.

Thanks!

[K-ice]

I can't speak as a newcomer but you can check out the rates at ratehub.ca. The big banks will usually come close to matching the best rate even if it isn't their posted rate.

[FrugalToque]

Ditto that:

https://www.ratehub.ca/banks/simplii-financial-mortgage-rates

We have two (or three now?) fairly big banks that have no-frills/no-buildings setups with good Internet and customer service.

We originally did our mortgage with these guys, when they were "PC Financial" and that worked out great.  Easy double payments, re-financing etc but it looks like they might not do mortgages anymore.

https://www.tangerine.ca/en/products/borrowing/tangerine-mortgage

Tangerine is another no frills bank with almost no fees, and they do mortgages.

When MMM moved to the states, he was surprised by the lack of nation-wide banks that support this kind of no-fees structure, but we have a number of them in Canada now, so make sure you look into that, too.  If a bank account has a monthly fee, do not take it.

Toque.

[FLBiker]

Thanks!  Unfortunately, it looks like Tangerine won't work for us as a mortgage provider as they require SIN / proof of Canadian residency.  We don't have either, yet, and would like to buy the house beforehand (rather than renting for a while).  We've got an offer from CIBC that seems OK, though - 2.89% for the 5 year fixed rate, 3.12% for the 7 year fixed rate.  Also, they allow double payments, and they're portable.  Given our status as newcomers, I understand that we may not get the best of the best, but I don't want to get ripped off.  As far as bank accounts go, though, I'll definitely look into Tangerine.

[Goldielocks]

I just renewed my mortgage, and I have a lot of past experience wtih brokers.  The one I used this time, I would definitely recommend.  Access to a wide assortment of mortgage vendors, and non-standard terms. Not just the big banks.  PM me if you want the referral info.

Also, the banks do negotiate.  The posted rate is the starting point, but you may need to have a competitive quote in writing.   Once you have that, you go in, and ask them to match it or beat it. 

As a new immigrant, your bargaining power might be lower, but nearly all the banks offer mortgage packages to immigrants now, so lack of canadian credit rating is not the issue it can be in the USA for immigrants.