Mortgage Readiness Quiz.

Why mortgage readiness matters in Canada (especially for Indian-origin buyers)

Most first-time buyers focus on finding the right home — but lenders focus on whether you're qualified to buy. A mortgage readiness check tells you exactly where you stand before you start house-hunting.

For Indian-Canadian buyers, especially newcomers and PRs, this matters even more because:

• Newcomer mortgage programs exist (RBC Newcomer, Scotiabank StartRight, TD New to Canada) but require specific documentation
• Cash savings from India may not be counted as "verified" without 90-day Canadian bank seasoning
• Indian credit history doesn't transfer — you start at zero in Canada and need to build score quickly
• Multi-generational household income can be combined for some lenders (huge advantage for joint families)
• Tax-free down payment gifts from family in India need proper documentation to avoid red flags

The 4 factors lenders check

1. Credit score (35% weight): 650+ for most lenders, 720+ for best rates. New PRs can use TD's "alternative credit" with 12 months of utility/rent payments.

2. Income stability (25%): 2 years of T4 income or 2 years of self-employed tax returns. Newcomers can use offer letter + employment confirmation for some programs.

3. Down payment + closing costs (25%): 5% minimum on first 500k, 10% on portion above 500k–1M, 20% above 1M. Plus 1.5–4% closing costs.

4. Debt service ratios (15%): Total debt service (TDS) under 44%, gross debt service (GDS) under 39%.

Special programs Indian-Canadian buyers should know

• First Home Savings Account (FHSA) — tax-free CAD 8k/year contribution, up to 40k
• RRSP Home Buyers' Plan — borrow up to 60k tax-free from RRSP
• BC Home Owner Mortgage and Equity (HOME) Partnership — interest-free loans for BC buyers
• Newcomer programs — RBC, BMO, Scotiabank, TD all have under-3-year-PR programs

The biggest mistake Indian-origin buyers make is starting house-hunting before checking pre-approval. Lenders want to see at least 6 months of stable Canadian banking — start that clock today, not after you find a house.