With more and more immigrants calling Canada home - 1.1 million between 2001 and 2006 - and many of them looking to buy their first home, the housing industry is doing its part to help these 'new Canadians' feel welcome.
"New immigrants face several challenges when buying a home in Canada - most specifically, cultural barriers and common barriers to homebuyers," says Benoit Sanscartier, director of insurance policy and technological operations at Canada Mortgage and Housing Corp., referring to language issues and limited credit histories.
Even the simple components of the process - such as determining how much an individual can afford - can be overly complicated if a candidate has a limited Canadian credit and employment history.
As Canada prepares for an influx of newcomers in the coming years - about 265,000 in 2008 alone - companies are introducing new offerings and services to meet the needs of this market.
When Ryan and Louise Chamberlain decided to move to Squamish, BC from the UK in 2005, the couple took steps to make it a little easier by attempting to open a Canadian HSBC account so that they could have funds available as soon as they arrived.
Despite the fact they had an existing HSBC account in the UK, however, they were told that the banks were totally different entities and that such a transfer of funds was impossible. In addition, they later found out that their credit history with Equifax, as well as the credit they had built with a Capital One credit card in the UK, would not be able to be considered either.
The absence of a credit history made purchasing a home in Canada - with a good rate and a reasonable down payment - very difficult.
"We were amazed that lenders wouldn't take our credit history into consideration," Ryan says. "These were segments of the same company - not completely separate entities. And we were moving between Commonwealth countries as well."
David Kuo, vice-president retail branch network for Ontario East at HSBC, says the bank has taken heed of this common occurrence, and has since launched a program designed to increase communication between international branches called the Passport Program.
Launched in 2007, the program allows new Canadian residents to set up a chequing account and credit card before leaving their home country - allowing them to arrange preauthorized payments and purchase much-needed items such as furniture upon their arrival. The account also allows them to build a Canadian credit history.
"It's like the chicken and the egg," Kuo says. "A customer can't get a credit card because they don't have credit, but they can't get credit because they don't have a credit card."
Other banks such as Scotiabank will accept reference letters from its branches across the world to help new Canadians get financially settled in their new country. Aware that there is a lot involved in starting a new life abroad, the bank's StartRight program, which launched in May 2008, also offers a variety of products - from chequing accounts to a 'Welcome to Canada' mortgage - specifically designed for newcomers.
Other major banks such as Bank of Montreal (BMO) are also increasing the flexibility of their mortgage offerings for these new Canadians.
Scotiabank's 'Welcome to Canada' offering is available in insured (less than a 20% down payment) and uninsured (more than a 20% down payment) versions and, in the case of the uninsured, a Canadian credit history isn't necessary. Borrowers are simply required to provide a reference letter from an employer or an international credit score.
At BMO, new Canadians can purchase a home with as little as 5% down even if they don't have a Canadian credit history. Naturally, the bank requires some form of reasonable source of information, whether it's an international credit report or an established payment history that proves they've regularly paid such things as rent or utilities or have put money aside for savings on a regular basis.