How do canadian expats get a mortgage for property in Canada. I am self employed and my spouse has f/t work?
I am non resisent for taxation purposes and would like ot keep it that way, have lived outside Canada for nearly 7 years, my spouse is non Canadian
We want to buy a(a few) rental properties in Canada.
- Anonymous1 decade agoBest answer
It seems that it's advisable to go through canadian financial lenders:
As a foreigner buying property in Canada, we recommend obtaining the mortgage through a Canadian bank for two very important reasons :
1. First, because our agency is in daily communication with several of the largest financial institutions in Canada and can therefore help you receive the credit you are looking for (which you could not necessarily obtain by your own devices).
2. Second, because in the case of a rental property, you will receive your rental income in CDN$. In other words, it is advisable to open a bank account with the mortgaging bank into which you receive your rental income and also expense your mortgage payments, thereby avoiding transfer and currency exchange fees.
Lenders in Canada are anxious to give loans, and go to extraordinary lengths to get your business. Depending on your financial circumstances, non-residents can be offered around 65% of the purchase price. Canadian citizens and landed immigrants can get up to 100% financing.
One issue for most buyers is the affordability of the mortgage. A quick way to calculate how much you can afford is to use the gross debt-service formula (GDS). Most financial institutions in Canada will require that the Principal, Interest and Taxes (PIT) on your mortgage loan not exceed 30% of your gross income. Increasingly, financial institutions will factor energy costs into the PIT formula, moving the rule of thumb GDS from 30 to 32%.
- tonygaylesLv 41 decade ago