New Mortgage
 

I am due to move out to Whitby, Ontario around December time. I am looking to keep a house in the UK to let and the mortgage I need for it is £60,000. I understand that I am liable for tax on the rental profits but does anyone know if the mortgage in the UK will effect the amount I can borrow for a mortgage in Canada?

Re: New Mortgage
 

yes, assuming you tell them about it. Canadian banks will generally let you borrow up to a level where your "total housing costs" (which include mortgage, property tax and heating costs) are not more than a third of your gross income (they tend not to use the simpler salary multiple calculation here). So unless you earn a small fortune your 60k mortgage in the UK would use-up a lot of your available borrowing power here.

But, there was another similar post to this a few days ago - see http://britishexpats.com/forum/showthread.php?t=483870

The advice I gave to that poster at the time was to sell and not rent the house out (unless you really love the house and definitely plan to go back to it at some point) since almost all analysts predict that house values in the UK will fall over the next couple of years - some think by as much as 35%. of course nobody really knows but the outlook doesn't look good. Now that mortgage rates have gone up its very difficult to make a profit from renting a house out - many buy-to-let landlords are making a loss each month. So you would effectively be subsidising your tenants living costs while they make your house look tired and leave you to worry about the loss in the property value.