How long does one have to reside in residence?

[Greatful]

Assume one is purchasing a duplex in the form of an owner/occupied purchase...how long does one have to live in the property before you can move to another area that you personally would enjoy more?
I know if it is your first property and the property transfer tax is forgone becasue of the "first time home buyers plan"then you must reside in the property for 12 months.

But what if you do pay the property transfer fee and is not reckognized as your first home?


Thanks guys and gals.

To Peace and Prosperity.

 

[RobMacdonald]

It all depends on your intent...... if you plan to purchase properties and then move out in a short period of time, then once or twice may be reasonable, but if it becomes a trend then the lender and/or CMHC will pull the plug on the approvals.

The time you have to live in the property will depend on the situation. There is no minimum time, it depends on the circumstances. if you move out with a couple of months, it will definitely raise a red flag with the new lender. The financing will get more difficlut along the way.

Be cautious, you will be treading a fine line here.

 

[invst4profit]

The reason for moving out is also at issue. If the lender is convinced that the borrower had no intent to maintain the home as a primary residence from the beginning you could be accused of obtaining a mortgage under false pretenses.
It is possible they may be able to call in the mortgage.

 

[Dan_Eisenhauer]

Greatful, if you joined REIN, you would find this subject covered over and over. As the previous two posters said, it depends upon your intent going in. If your intent is to live in the property for a relatively short period of time in order to get better financing, you are running the risk of carrying out a fraud against the lender. The lender will not take kindly to that, not the least of which is difficulty financing future deals. Fraud is a criminal offense, and is often treated with very harshly.

My point is that you need to be very careful about your intent. As Rob points out, there is no time frame requirement. Your plan to move out in two weeks is very different than a plan to move in two years.

 

[ChrisDavies]

And I believe they could force you to pay the transfer tax retroactively if they revoke the other status.

 

[Greatful]

Thnaks guys!
The thing is, I`m not sure how long I want to live there just yet.
The only thing I know is that I want to obtain a second property as soon as possible.
If things go smooth right from the get go I will begin to search for a second property probly immedietely...property hunting is just so much fun
If there are some snags here or there then hanging around until things settle is fine.

Guess I will have to play it by ear.
Thanks again guys...and yes I will be joining the "inner circle" very soon...or at least I hope so!