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| Subject: Buying Property in Canada |
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I am planning on moving to Canada in the next 3 years. I am thinking of investing my savings in buying on a condos apartment and rent it until I move there. I´ve done extensive research on the area I want to buy and I can rent it out to break even on my monthly mortgage (taxes, insurance). Is it possible to obtain financing in Canada while you don´t live there? I can put up to 20% down. I think it´s a good idea for the following reasons
1) The falling dollars. I rather keep my money in hard asset in a stable market instead having $$$ sitting in a bank and loosing value.
2) The Canadian housing market didn´t experience lot of subprime lending, therefore housing is more likely to stay stable compared to US.
3) I Can use it when I move there
Has anyone heard of non residents buying properties in Canada ? In USA you can do it any day of the week. I would assume that its possible in Canada also, but need to check. Thanks
[30-10-2007,03:32]
[**.138.130.241]
Need_Help |
|
(in reply to: Buying Property in Canada)
I´m not sure about buying properties about non-residents. Most likely it is possible.
BUT not financing. They´ll need to see/check your credit history in Canada right? Just showing overseas income may not help greatly.
[30-10-2007,11:50]
[***.254.208.242]
Departed_Canadian |
(in reply to: Buying Property in Canada)
Yes, it is legal for non-residents to own propeorty in Canada.
There are also many U.S. citizens who own vacation property in Canada. They are under the catagory called seasonal residents, and can bring in goods to their residence exempt from taxes. However, they can´t live in Canada year-round and enjoy no social benefits.
[30-10-2007,12:25]
[**.53.225.148]
Richard |
(in reply to: Buying Property in Canada)
Thanks guys. Yes I will definitely need the financing. I will call some banks ask what I need to do. At least its good to know that it´s possible.
[31-10-2007,02:36]
[**.138.130.241]
Need_Help |
(in reply to: Buying Property in Canada)
It´s possible, just be ready to put more than 20% down, 25% (min) or 30% (sometimes they want 30) at least; and show convincing proof of income. The mortgage crisis is not over yet. I think its effects are still to be seen outside US borders and all banks are really paying attention to whom they lend they´re money.
I would assume it´s not going to be as easy to get the loan if you´re planning to come to a new country, new job, etc.
But it´s possible. Contact the banks.
[31-10-2007,11:53]
[***.66.92.131]
Jose |
Buying Property in Canada (in reply to: Buying Property in Canada)
You can do it. I just have. HSBC offer up to 65% of price to non residents. you just have to prove you can afford it like you would have to anywhere else.
See http://www.hsbc.ca/1/2/en/personal/mortgages-loans/mortgages/non-resident-and-new-resident-options
[31-10-2007,22:08]
[**.151.6.196]
George |
(in reply to: Buying Property in Canada)
Thanks guys. Jose I can put 30% down but I´m not comfortable putting more than 20%. George, thanks for the link. I will look into it. Another possibility is through MBNA. Bank of America But I will probably go through MBNA.
[31-10-2007,23:04]
[**.138.130.241]
Need_Help |
(in reply to: Buying Property in Canada)
When financing as a non-resident in Canada you´ll come across "insured" and "uninsured" mortgages and probably be able to only apply for the uninsured one - you can google the difference.
You´ll have to put a considerable % down as a non-negotiable requirement. I thought it was 30%, but if HSBC is asking 35%, then that might be the requirement for uninsured mortgages in all Canadian banks.
Please let us (me) know what options you come accross... I would like to see if an American bank gives you a mortgage for Canada.
[31-10-2007,23:22]
[***.166.46.165]
jose |
(in reply to: Buying Property in Canada)
Jose,
I am considering bank of America because I have an equity line with them. That´s the main reason I am considering better buying. I can cash it, and convert to a fix rate while the feds a cutting the rates. I could use the cash for a down payment. Cold hard asset is better these days than cash. Looming inflation.
I will keep you posted with what I come up with. The customer rep sounds like its possible to obtain an MBNA loan through BoA.
The difference between insured and uninsured loan is that you pay a monthly premium (between $30 to $100/month depending on your mortgage) to have the loan insured in case of default. Mostly first time home buyers and people with low credit rating are required to have a mortgage insurance.
[01-11-2007,00:40]
[**.138.130.241]
Need_Help |
(in reply to: Buying Property in Canada)
Using the equity line with BoA sounds like a good idea.
About the insured vs. unisured mortgage, what you´ll find more troublesome are the requirements to qualify for the lower down payment. Non-residents are usually not able to apply for isured mortgages and end up having to pay around 30% down. But.... surely Americans can find better deals. (Not assuming you are, but if that´s the case...)
By the way, 20% down and breaking even with the rent sounds like a really good deal... can I ask where in Canada are you looking to invest?
[01-11-2007,02:32]
[***.166.46.165]
jose |
(in reply to: Buying Property in Canada)
Jose,
No I´m not american if that makes any difference. Not permanent resident yet.but getting credit will not be an issue. I agree I may be required to put a big chunk down. I´m looking at Richmond BC area and anything between there and Seattle. Lot of good stuff on craiglist. Ill be there in 2 weeks to look at places and the area.
[01-11-2007,23:55]
[***.9.250.103]
Need_Help |
(in reply to: Buying Property in Canada)
Jose,
No I´m not american if that makes any difference. Not permanent resident yet.but getting credit will not be an issue. I agree I may be required to put a big chunk down. I´m looking at Richmond BC area and anything between there and Seattle. Lot of good stuff on craiglist. Ill be there in 2 weeks to look at places and the area.
[01-11-2007,23:56]
[***.9.250.103]
Need_Help |
