to fund your purchase it is interesting to note than depending on your country of origin and circumstances, there are a number of major financial institutions in Canada willing to lend to non-resident buyers.
The following is only meant to serve as a general guide to Canadian mortgages - it may not apply in every case.
Most Canadian mortgages are what’s known as “full status” - a full status loan is where complete checks are made on the borrower’s credit history and income.
To apply for such a mortgage you will have to have proof of income and outgoings. Such finance can be raised for the purchase of property,
UGGS Classic Short, the renovation of real estate or for house construction purposes.
Generally a 35% deposit is required and the purchaser is also responsible for all legal fees involved in the arrangement and purchase process. 35% is just a guideline, some provinces require deposits of up to 50%,
moncler men, and in special circumstances a deposit lower than 35% may be acceptable.
Most mortgages are repayment over a maximum of 25 years with pay back due for completion before the purchaser’s 70th birthday. Most lenders make life cover a further lending requirement.
When it comes to eligibility for a loan and size of a loan you need to know the following: -
- Eligibility is based on the applicant’s current ability to fulfil the financial terms of the loan, it is not based on any potential rental income the applicant may generate from the property he is hoping to purchase with the mortgage.
- Taking the applicant’s gross income into account, 40% should cover all existing outgoings and commitments AND the monthly repayments for the proposed new mortgage.
- If you’re self employed then your income will be taken as the average of your last three years’ net income.
- If you have existing rental and/or investment income this may be taken into consideration as well.
- Outgoings in this context are any current mortgage or rent you pay, any personal loans or credit card payments you have and any child support payments you have to make.
If your mortgage application is successful it will of course be secured on the property you’re buying in Canada and not on any property you currently hold in which ever country you are a resident.
The mortgage company carry out a valuation of the property you’re looking to buy to make sure it’s worth the purchase price, and you’ll probably end up paying any fees they incur making this valuation. Finance arrangement fees can sometimes be charged as well,
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The money you borrow will be paid to the vendor via the solicitor or notaire responsible for the completion of the purchase contract and process.
That’s it in a nutshell!
As stated though, the entire real estate purchase process and application for a mortgage will depend on personal circumstances.
Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving & living abroad - including the often less discussed offshore tax advantages that can be available when leaving our homeland. Check out her website to find out how you can escape from the rat race, relocate overseas, and profit from your move!
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