Buying a house
Oct 9th 2018 | 4:21 am
#1
Thread Starter
BE Enthusiast
Joined: Mar 2012
Posts: 968
From: Calgary
Buying a house
Hello British Expats.
I'm thinking I'll buy a house in Canada next year but I still have a house in the UK which is being rented out. Does anyone know how this will affect my ability to obtain a mortgage in Canada?
Thank you in advance!
I'm thinking I'll buy a house in Canada next year but I still have a house in the UK which is being rented out. Does anyone know how this will affect my ability to obtain a mortgage in Canada?
Thank you in advance!
Oct 9th 2018 | 8:06 am
#2
Joined: Sep 2008
Posts: 12,830
Re: Buying a house
Depends on your deposit, income and any liabilities. Any lender will ask those questions. Question best posed to a mortgage broker.
Oct 9th 2018 | 8:38 am
#3
Lost in BE Cyberspace
Joined: Aug 2005
Posts: 13,402
From: South of Calgary
Re: Buying a house
They will wish to ensure that your liabilities do not exceed a certain percentage of your income. IIRC it was 40% of gross income, but that may have changed. They will want you to provide details of what your English mortgage is, and how much you receive in rental income. Generally, if you are able to make a 1/3 down payment, they really don't care what your income is as they know they will be able to foreclose and recoup their outlay. The less of a down payment you have, the more documentation they will require from you.
Oct 9th 2018 | 1:34 pm
#4
"In cruce vincam"
Joined: May 2010
Posts: 3,233
From: Mill Bay, Vancouver Island
Re: Buying a house
When we bought our place we didn't even have jobs, but we did have a rather large deposit, so securing the mortgage was easy.
Oct 10th 2018 | 7:21 am
#6
Thread Starter
BE Enthusiast
Joined: Mar 2012
Posts: 968
From: Calgary
Re: Buying a house
Thank you for the replies.
I am concerned that they'll disregard the rental income from the UK property and just use it as a liability, I read that somewhere but was hoping someone may have experience of buying whilst renting their UK property.
I am concerned that they'll disregard the rental income from the UK property and just use it as a liability, I read that somewhere but was hoping someone may have experience of buying whilst renting their UK property.
Oct 10th 2018 | 12:27 pm
#7
BE Enthusiast
Joined: Feb 2008
Posts: 322
From: Kingston ON
Re: Buying a house
Having bought and sold a few times in Canada and having had a rental (in Canada) they will base all decisions on "everything" - So long as the numbers add up and you have a suitable (whatever that maybe) deposit the process is the same - uk or canada
No Income - 50% deposit - You'll likely swing it
$400,000 a year income 20% down on a million dollar house - You'll likely swing it
All about numbers !
No Income - 50% deposit - You'll likely swing it
$400,000 a year income 20% down on a million dollar house - You'll likely swing it
All about numbers !
Oct 10th 2018 | 1:11 pm
#8
Joined: Sep 2008
Posts: 12,830
Re: Buying a house
So long as you can prove the rental income, it is no different to any other business. Tax returns best way to prove income.
Oct 11th 2018 | 5:38 am
#9
Thread Starter
BE Enthusiast
Joined: Mar 2012
Posts: 968
From: Calgary
Re: Buying a house
Thank you guys. I've got a job working at the City and my girlfriend has a job working at a care home whilst she does a bridging program to get registered as a nurse. I'll probably get the ball rolling in the next few months so if I hear anything significant I'll add it to the thread for others.
