We have applied to live in canada, however, in the meantime we would like to buy a property in ottawa and lease it for 2 years while we are waiting. Does anyone know if it is possible to obtain a mtg to do this whilst we are still uk residents?? If so, by which lenders.

Yes, most of them will allow you to do so depending upon your salary/debt ratio

Do you mind if I bump this too, Adele Thorr, because I was just about to post the same question (except that I want to buy an apartment in Vancouver), and there's no point starting another thread. Any information would be really welcome!

I dont mind at all. Hope you have more luck than me. I cant seem to find the information i need.

Still a bit early in the day.....

What more information do you need - I have already told you that it is possible - most banks and lending institutions will not have a problem with what you have requested provided your salary/debt ratio is within their requirements - most allow up to 40% of gross income.

If you want a more specific answer I would suggest you pose a more specific question

whoa, there, whoa...just a minute!
i dont understand firstly by what you mean by "have applied to live in canada"!
it's not as easy as that, you know, unless you already know that!
you have to go through the CIC immigartion procedure first, pay your fees and then, maybe, after some time, up to 2 years now, the cogs of the process will start turning.
secondly, as you do not have canadian PR status, you are at a distinct disadvantage, as you do not have any canadian credit history at all and your UK history is worth zilch in canada!
even with PR status, you will still be required to put down at least 30% deposit, whereas a citizen can get away with 5%.
take it easy and slowly, and start with the immigration if i were you, comprendo?

Ok, leaving aside all notions of PR because it's not the issue here: how easy is it for a foreigner to buy property in Canada, possibly with a view to letting it, possibly not?

Here's a comparison: in the Czech Republic, foreigners need to start a business in the country before they are allowed to buy property. In France they do not. What is the situation in Canada?

If a foreigner needed a mortgage (again, PR not being the point here), would there be a chance of getting a Canadian one, or would it have to be with a bank in their home country?

Now I am talking about PR again: several people on this site have said that the best possible thing to do upon landing is get a mortgage (i.e. while you are still newly-landed). If a newly-landed PR can (possibly) do this, then maybe somebody who does not have PR (or who may not even want it) could too, despite the lack of Canadian credit rating. So the question is, IF this is possible, HOW is it possible?

Thanks.

it is possible,( we have just done it) the more capital you have to put down the easier it will be.
you just need to speak to a mortgage broker or bank

Yes it is possible - I have just been pre-approved for a mortgage - just need to find a house now.

As I have stated above, all you need to do is provide the lending institution with details of your salary/debt ratio and provide documentary evidence similar to that that you would in this country (employer's letter confirming salary, details of debt, credit score - mine was a UK Experian one) and you're off.

Great thing is they will base it on your UK salary rather than your potential "Canadian one" great for those like me that will have to take a cut in pay whilst re-qualifying.

The specifics of what steps you need to take will depend upon the lending institution (as it would over here). Put simply, you will need to pop over for a short trip to organise it all. I got mine with TD Canada Trust but others were just as anxious to "sign me up"

Owning property in Canada without PR is not an issue (at least not for British Citizens - it might be different for others but I am not one so didn't look into it)

We are in the process of going through this too - in BC on a temporary permit and buying a house in Victoria as we speak (conditions come of the contract today, woo hoo!) - the fact that we're not citizens or permanent residents is not an issue. We're not taking a mortgage, but were pre-approved for one by our bank (HSBC), and again us not being citizens/PR was not a problem.

Only issue you may want to look into is the tax implications, just in case your plans don't work out and you don't make it out here to live (hence don't qualify as tax residents): you will then be taxed heavily when you come to sell the property. I don't know the nuances for what happens if you have leased it, then it becomes your main home, and you then sell it (as tax residents) either (never had to look into it in Canada, so I don't know if they have the 3 year rule etc. like in England).

I would like to thank Julius for your concern, but I have already done all the fee paying etc and am now just have to sit and wait.

I feel a little bit more comfortable??? i think! Thank you all for your input, i will start the phone calls tomorrow.

I would be really grateful if mick and roz could let me know which lender they used. Thank you kindly

I am bit late to this party. But if you bank with HSBC in the UK they have a special expat program which will allow you to raise a mortgage more easily both in the States and Canada - so long as you are in good standing.

Otherwise I suspect you will have to go non status which is just like the UK - 35% down.

HTH

BTW I just visited Ottawa - what a great place....

Had my picture taken next to a mountie.....

TD Canadatrust are the lenders but we used a broker. we had 1 initial visit when we were over and all other correspondence has been by e mail and fax.