Special Programs - Welcome to Canada Program

The Welcome to Canada Program is directed to potential immigrants to Canada. The maximum loan-to-value ratio is 65% of lending value for properties valued at $1,500,000 or less. For properties with a value between $1,500,000 and $4,000,000, the maximum loan-to-value ratio is 50% of lending value. Properties valued in excess of $4,000,000 are not eligible under this program. Mortgages are provided on an uninsured basis.

Eligibility Requirements

• The customer must have established residence in Canada and the application is made within 6 years of the applicant(s) arrival date in Canada. Application must be substantiated by an Immigrant Identification Document that bears an official stamp with an entry date. A photocopy of the document is required for Bank files.

or

• The customer must substantiate their application by providing a valid immigration visa. A photocopy of the visa is required for Bank files.

• For owner-occupied principal residences, the mortgage may be granted for purchase, switch, refinance or switch upsell purposes.

• For rental properties, the mortgage may be granted for purchase or switch purposes. Only one rental mortgage is available under the program. (A full appraisal report must be obtained for all switch loans (i.e., reduced switch appraisal requirements are not available for loans granted under this program.)

Note:
Branches may approve mortgages on rental property provided the rental property is self-supporting.

Applications are processed through ReCApp/SAM and are declined if any major derogatory credit exists. In addition, the customer is assessed by the Manager as having a satisfactory financial background by:

• a reference from a former employer in the country of origin;
• for applicants who have not yet officially landed in Canada but have a valid immigration visa, a satisfactory credit reference from their financial institution;
• evidence of net worth (minimum $500M) and/or income verification is required for mortgage amounts exceeding $500M.

Providing the above requirements have been met, the usual GDS and TDS ratio requirements are waived.

Note:
Loans exceeding branch approval limits are to be recommended to the LDC for approval.

Don't forget to include confirmation of the above in the comments section of the Decision & Verification Worksheet. Also, ensure the Welcome to Canada" Marketing Program Code is selected.

If members of the customer's family are planning to settle in Canada from Hong Kong in advance of the customer's arrival, they may apply for a mortgage loan from our Hong Kong Branch, in Hong Kong dollars, with a term of up to 20 years, covering up to 70% of the purchase price or the appraised value (whichever is less) of the property they wish to buy in Canada.

Please contact

Rhonda M. Hawthorne

Royal Bank Mortgage Specialist

Phone: (250) 885-6900

Email: rhonda.hawthorne@rbc.com