By Erica Nielsen

Each year we welcome more than 650,000 immigrants to Canada. These individuals experience a number of firsts:  bank account, credit card, car loan and eventually, mortgage. This spring will mark the first time many of them will participate in the home purchasing process, a true Canadian rite of passage. Newcomers often look to industry professionals who live and breathe the housing and mortgage financing market for guidance on this important decision.

The biggest challenge newcomers to Canada face is credit history. Newcomers must be able to feel they have the recognition as a newcomer as they navigate the Canadian landscape and settle in their new country. At some banks, including RBC, newcomers to Canada now have up to five years to qualify for special rates and offers that were previously extended only to newcomers in their first few years in Canada.

Here are some tips for real estate professionals working with newcomers as they navigate their options for homeownership:

1. Get a foundation for how much your clients understand about the home buying experience in Canada – it can be entirely different than their home country.

2. Take your clients through the home buying process and timelines so they understand all of the rules and requirements, and additional needs that may be required to complete a sale.

3. Explain housing budgets and financial expenses as they relate to the purchase of a new home and longer-term home ownership needs.

4. Educate your clients that different financial institutions have policies and programs available to newcomers, such as no credit history policies, recognition as a newcomer for the first five years and more.

Erica Nielsen is vice-president of Products and Segments with Home Equity Financing, for the Royal Bank of Canada. RBC celebrates the 4th annual RBC Realtor Appreciation Week April 7-12.