Amp34

The GF and I will be heading to Canada in the summer of 2015. A couple of months before we head over there permanently we will will be heading over on a house hunting trip and will probably be buying a house. We should have a 20-30+% deposit for a house but it's the mortgage that I have queries on.

My GF is Canadian but I'm British. She will be continuing her job over there but I will have to quit and find a job when I get there. I will however still have my UK job when we go over and buy the house. I'll also probably not have PR by that point (hopefully a month or two later - in time for actually moving over there). Will the mortgage company take the income from my UK job when we go to buy a house and lend based on that or are we likely to only be able to get a mortgage on just her salary? Does anyone have experience with this?

Thanks.

Aviator

If you have quit your job, then you don't have a salary. I think showing an income from a job the UK and trying to get a mortgage and buy a house here is going to raise a few questions from the lender. As soon as you say you are moving over, they know that income will likely be ending.

You may want to consider renting until you get a job, you never know your job may require you to go to a different area. Once you and her both have jobs,with a 25% downpayment, you could do OK.

Amp34

Renting was my first thought too. Problem is she gets her relocation funded (Inc taxes and fees for buying a house) so renting, even for a couple of months would mean we would lose potentially thousands of dollars if we bought after renting.

You've basically said what I thought was the case which is I'd need to get a job over there before I can add my salary to a mortgage. A few pages (including the wiki on this site) seemed to suggest otherwise. The plan then may be to buy with just a mortgage on her salary then buy again later on (potentially). Another question. Would a company lend to you if you had a job lined up for 3 months down the road (but we're still working in the UK)?

I ask this because it may affect which residency option I go for.

Dashie

I think a lot of companies here want you to be past your probation period, which seems to be 3 months. That's at least 3 months after starting. I don't think they'd really consider you until then for income purposes, let alone having a credit score. Your deposit will help hugely of course, but an income that doesn't exist yet probably won't.

Aviator

Pretty much what Dashie said + if you buy a property now then sell and buy a bigger one down the road, the realty fees won't be insignificant.

A $400,000 home could cost $10-15k for realtor fees, plus legal fees. Many provinces have property transfer tax, which if you already own a home you won't have a first time buyer exemption, like thisi n BC http://www2.gov.bc.ca/gov/topic.page...A2D3CC2CD3ACBC
If neither of you have owned a home (anywhere in the world), as first time buyers you don't pay PTT on your first home. To extend this, if one home is in her name alone and the next one in yours, you may get a double dip, but get advice on this from a lawyer, as I am not sure if this can be done and there would be potentially other ramifications.

So probably by the time you're done selling a $400k home and buy another home you are into it for $20k of fees for selling and buying. This is of course assuming you find a buyer and real estate prices allow you to get out what you paid or more.

Buy where you intend to stay for along period of time or be prepared to pay a lot to move.

The employer may pay relocation fees and maybe you could ask them to cover some rent while you settle in. Even if you can afford it, buying off the bat in my opinion is not a good idea, rent first and get a lay of the land, as selling and moving is so expensive.

The cost of buying wrong can cost 10's of thousand's!

Amp34

I get you entirely. The idea of going over and picking a house in one week is pretty frightening but it appears it's fairly standard procedure in the Military (GF's job). That $15k+ is the reason we are very interested in buying straight away as it'll be covered by her employer.

We're currently hoping for Calgary and AFAIK the PTT is $151 which is a bonus.

You both have answered all the queries I had about the mortgage issue though, Thanks! It clears the air a little with visa/PR timing. Basically it won't matter when I get it as long as it's around the time I move over. I'm unlikely to be able to get a mortgage against both our salaries even if I have an employment offer.

Thanks.

Novocastrian

You may be a bit pessimistic in last part of your conclusion. Perhaps this is way out of date, but in 1993 a bank in Canada was perfectly happy to pre-approve me for a mortgage based on an official offer of a permanent job which stated salary, before I actually started the job.

Aviator

One thing to remember though, you don't get if you don't ask.

Amp34

Interesting to hear there is a possibility, thanks. We will definitely be asking nearer the time to see what we can get.

Tootlepootle

We bought a house after a five day house uniting marathon. We had a pretty good idea what area we wanted to look in. we also got a mortgage ahead of us arriving, albeit with a written offer from my husband's new employer. I didn't have a job to come to. We got lucky with a 5% deposit and a good fixed term deal. We are based near Vancouver so crazy prices to pay!
It can happen as Aviator said, if you don't ask, you don't get.

missieleah

Like the above, we got a mortgage here after 2 months, but we put down a 25% deposit on our house. Getting a mortgage wasn't a problem at all, but then prices in SK are inflated beyond belief, makes me worry about what's going to happen sometimes, and will we end up in the same situation that we were in before in Ireland I'm constantly looking at the local house prices and waiting for a crash!

jwtimmon

Gotta agree, when I was over in Regina wandering around looking at the place I got a real deja vu experience. I know SK has a lot more going for it in regards to natural resources and a boom based on something more concrete than an inflated housing bubble but nevertheless.

Same mad panic for first time buyers to get on the property ladder
Chronic housing shortage
Houses been thrown up as fast as possible
All the alarm bells were ringing in my head, here's a bubble waiting to burst.
Even the same types of people saying "oh no, there is NO bubble here!!" with a few lone dissenting economists saying "oh yes there is".

My own non professional gut feeling is that house prices are being driven by demand and lack of supply and once either the demand reduces or supply catches up, the house prices will stabilise in SK.

If supply catches up and demand drops off sharply then house prices will plummet. So I'm taking a calculated bet that by renting for the next 2 years the market will either stabilise or drop but not continue to grow at the record rates it has in Regina. If i'm wrong then I'll probably either continue to rent or swallow my lumps and buy at a higher price than I could have. If I'm right I'll have avoided being in negative equity twice in my life.

John

Shirtback

+1 in 1997. With the minimum (at the time) down payment.

R I C H

2005 I got a mortgage 2 days after arrival, on my 3yr work permit to start a business and be self employed. No certainty of income levels, 50% deposit put down.

jwtimmon

I think the important bit of that statement is "50% deposit"