Getting a mortgage
 

Hi

I am still waiting for my PPR but thought I'd try and do a bit more research into getting a property.

I will have about $20K deposit and earn probably $40K per year and I was asking to a mortage advisor what sort of thing I could afford. Obviously I won't be looking at buying anything until I had a job in the bag and a contract.

I had spoken to a realtor previously and was not warned of this but I was told by the advisor that I needed to be earning $60K+ per year. At the bottom is the full text of the email she sent me. Does anyone know if this is always the case? If so I guess I am renting for a bit!!

Thanks to anyone who can help.

Jason

here are the guidelines for purchasing as a new immigrant.

Qualifications:

. primary applicant must be employed by an established and highly
respected company at a minimum salary of $60,000.00 per year
. must have minimum down payment of 10% from own resources, not
borrowed
. if applicable, must be able to demonstrate that principal residence
(in originating country) has been sold or are able to carry both mortgages
. must have relocated and/or immigrated in the last 12 months
. this product is not available for Diplomats or any other foreign
political parties who do not pay income tax in Canada

Documents Required:

. offer to purchase
. proof of full time employment with no probation
. income verification
. work visa, employment contract, etc.
. international credit reports or letter of reference from recognized
financial institutions confirming acceptable mortgage and other financial
dealings
. if applicable, proof of sale for principal residence in country of
residence prior to Canada
. proof of down payment from own resources
. copy of Landed Status, if available

Re: Getting a mortgage
 

I'd find a different financial advisor - sounds like they are pushing a specific lender. However, that is a modest deposit and therefore the risk for any lender will be greater, so potentially more hoops to jump through.

We had a substantial deposit but got a mortgage without being employed i.e. no income. We didn't even supply proof of savings or anything to substantiate that we could service the debt. My view is that with the deposit and rapid increase in house prices, the risk was not singificant for the bank (a major Canadian bank by the way). We supplied Experian credit search - good to get this and take with you. Proof of residence etc.will always be a requirement.

good luck

Re: Getting a mortgage
 

Thanks for that. I'll look into it a bit more and take a credit check with me too. Luckily I am with HSBC who say they can help me open a bank account there and will also be able to verify what an outsanding citizen I am. Or something!!

Cheers!

Jason

Re: Getting a mortgage
 

Here is some information from my realtor in Ontario.

The majority of new arrivals to Canada prefer to own a house rather than rent and one of the first questions I am asked is: Can I get a mortgage to purchase a house as soon as I arrive here?

The answer is "yes"!

There are several scenarios in which a mortgage can be secured.

1. If you have at least 35% of the purchase price to use as a deposit then a mortgage can be secured as soon as you arrive here even if you have no employment! All financing arrangements can be made before you arrive in Canada and once organized then a house can be purchased as soon as you arrive. This is a very straightforward conventional mortgage and a real bonus in this situation is that the mortgage can be guaranteed at 1% below the posted rate

2. Once employment is secured you can be eligible for a new initiative called “Welcome to Canada”. This program allows you to purchase a home for 10-15% down.

3. Even if you have just arrived in Canada and have no job but you have approximately 15% of the purchase price you can still secure financing.

4. If you are being transferred from your job in Britain and moving directly to employment with the same company in Canada then you are eligible to purchase a house with the minimum down payment of 5% of the purchase price. There are Canada and Mortgage and Housing Corporation insurance fees that must be paid, however this is folded into the mortgage and is not paid “up front”.

Re: Getting a mortgage
 

MMM :confused: :confused:

Is there such a thing as an international credit check, never heard that one before !!!!

Eddie

Re: Getting a mortgage
 

Proof of residence is not always necessary - our mortgage was in place months before having any residential status in Canada, and based on an application to be self-employed (so no proof of income). We did have a substantial deposit, but were also requesting a reasonably large mortgage too. All arranged by RBC while we still lived in the UK.

Re: Getting a mortgage
 

Thanks very much for the info. This 'Welcome to Canada' initiative which RodseyUK mentions sounds particularly interesting. Just found it on the CIC website so that is my morning at 'work' sorted out. ;-)

Cheers,
Jason

Re: Getting a mortgage
 

Where in Canada are you thinking of moving?

$20k+3*$40k is only $140,000 and, since the $20k isn't 20% of the property value you'll be getting into secondary lenders and CMHC fees. These aren't viable numbers for the GTA.

Re: Getting a mortgage
 

Hi

Despite emailing a few realtors and mortgage lenders to ask, no-one has yet told me that you can only borrow three times your annual salary. I was always going to get a job before I bought so once I accurately know what I am earning I will have to look and see what I can afford and otherwise will have to settle for renting.

BTW in answer to your question I was looking at moving anywhere within an hour of Toronto. Oshawa didn't seem too expensive.

Cheers,
Jason

Re: Getting a mortgage
 

I don't know that you can only get three times salary, that's just as much debt as I have balls for. If you want the simple answers email this woman:

Darlene Hanley - Mortgage Specialist
Oriana Financial Group Canada Ltd.
Direct Line/Fax - 416-466-0664
Office - 905-265-8315/416-690-4222
Toll Free - 866-340-7958
[email protected]
www.darlenehanley.com
www.orianafinancial.com

Re: Getting a mortgage
 

Thanks very much dbd33!

Cheers,
Jason

Re: Getting a mortgage
 

Not at all. I've dealt with her twice recently and it's all been very low hassle.

Re: Getting a mortgage
 

I don't want to belittle you but those numbers you mentioned in post 1 are not huge. I think you'll have a hard time finding anywhere in the GTA to buy, let alone run, for that sort of money.

Re: Getting a mortgage
 

I believe so. When we had our credit check done when we bought our house it was amazing the things they knew about us. :eek:

They came back with information pertaining to us living in Canada before and info on us from living in the UK, pretty scary in my opinion. :blink:

Big brother really is watching I guess.

Re: Getting a mortgage
 

I recently applied for a mortgage in canada with RBC, they accepted a credit check i provided from a company called www.creditexpert.co.uk which uses experion. all we needed was 25% down, a letter from my UK employer stating how much i earned, a letter from my UK bank stating how long i had been a customer and any credit facilities i had and a current bank statement. My salary was about $80K CAD and i had no probs getting a 230K mortgage offer

Steve