Mortgage woes

Old Aug 3rd 2018, 2:57 pm
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Default Mortgage woes

Hi All,
This is my first post on here. I have been following the forum for a few weeks since we began considering a move back to the UK from Canada. My husband and I moved here in 2010 and we are both now Canadian citizens as well as UK citizens. Since moving here we have had a son who is also a dual citizen, he has his UK passport.
Amongst my other concerns, which I hope to get your views on later, one major sticking point that seems to be throwing a spanner in the works is that we currently own 2 properties, one is our main residence and the other we rent out. If we decide to go ahead with the move (still so many questions) we would sell our main residence but keep the other property as we currently have tenants signed up until March 2020. We have also lost about $25K on the property price due to the current housing market and we would have a penalty of $10k for coming out of the mortgage early as we are on a fixed rate term until 2020. Our plan was to file as non residents for tax purposes when we cash in my husbands work pension and our RRSPs from pensions we brought over with us. We asked our mortgage lender where we would stand in terms of owning property and them continuing to lend to us if we were non residents. They have been unable to give us an answer and have stated that unless we give them a firm date for leaving (we haven’t even made up our minds yet) they cannot tell us if they would continue to lend. They mentioned that a non resident is normally required to have 35% deposit in order to get a mortgage ( I didn’t think this applied to Alberta where we are) and we have no where near that in equity in the house. So the bank have been unable to give us any clarification whatsoever. If it weren’t for the current rental agreement we have, we might consider cutting our losses and selling. Has anybody ever been in the same boat or can anyone throw some light on this for us please?
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Old Aug 10th 2018, 12:43 am
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Default Re: Mortgage woes

Before leaving, you may want to consider professional tax advice before leaving Canada. It is not as easy us just filing a ax return as a non resident. CRA may disagree and financial institutions will withhold tax on any registered plans when cashing out.

This article gives some insight.
https://globalnews.ca/news/3280220/m...-your-savings/

With regard to mortgages, talk to a mortgage broker, who may be able to assist. The bank should also be able to help, talk to a manager. If you have a mortgage agreement look at the terms, if it mentions a change of residency. The 35% deposit is not a provincial thing for non residents, it is a bank rule.
If the bank want to change the terms of the agreement, unless the agreement allows for a change of terms, this may mean canceling the current mortgage agreement and entering into a new one.
As a mortgage is a contract, it may be a good idea to consult a lawyer. I would get professional advice before agreeing to anything or doing anything.

Last edited by Aviator; Aug 10th 2018 at 12:53 am.
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Old Aug 10th 2018, 2:26 pm
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Default Re: Mortgage woes

Thank you Aviator for your reply and the link, very interesting read. We definitely plan on consulting an accountant or tax professional before we make any firm plans to leave. We will also read through our mortgage contract and see what it states, if anything, about leaving the country.
We have sent yet another email to our bank to try and get an answer to our questions but we have yet to receive a reply. Speaking to a mortgage broker is a very good idea!
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Old Aug 16th 2018, 4:11 am
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Default Re: Mortgage woes

Cut and run is my advise and don't look back. Take the loss and enjoy a new life.
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Old Aug 16th 2018, 7:52 am
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Default Re: Mortgage woes

Originally Posted by Benson55
Cut and run is my advise and don't look back. Take the loss and enjoy a new life.
Please stop with the constant short and unnecessarily rude comments. If you have nothing helpful or informative to say it's best to say nothing.
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