Mortgage for non-permanent residents

[Pabs]

Hello,

This is my first post in this forum and I`m hoping someone can help me out with a mortgage problem. I come from Mexico and currently I`m residing in Moncton, NB. My status in Canada is as a Temporary Foreign Worker. My wife and I are planning to stay in Canada for a while and we wish to invest in real estate. We will be applying soon to obtain the Canadian permanent residence, but that`s a long process that might take up to 2 years, and in the mean time we want to buy our first property to live in and rent half of it.

In the past month we have been discussing our options with a local mortgage broker. Unfortunately she only works with banks and there are some limitations for non-permanent residents. For example, in order to obtain mortgage insurance it`s a requirement to apply within 24 months of arrival to Canada (we`ve been here for more than 2 years already). That`s one of the reasons why we are searching for alternative mortgage lenders that allow us to obtain the loan.

The question is if anyone here is familiar with the mortgage process for non-permanent residents and can recommend a lender.

Thanks!

 

[MonteDobson]

QUOTE (Pabs @ Mar 28 2010, 01:59 AM) Hello,

This is my first post in this forum and I`m hoping someone can help me out with a mortgage problem. I come from Mexico and currently I`m residing in Moncton, NB. My status in Canada is as a Temporary Foreign Worker. My wife and I are planning to stay in Canada for a while and we wish to invest in real estate. We will be applying soon to obtain the Canadian permanent residence, but that`s a long process that might take up to 2 years, and in the mean time we want to buy our first property to live in and rent half of it.

In the past month we have been discussing our options with a local mortgage broker. Unfortunately she only works with banks and there are some limitations for non-permanent residents. For example, in order to obtain mortgage insurance it`s a requirement to apply within 24 months of arrival to Canada (we`ve been here for more than 2 years already). That`s one of the reasons why we are searching for alternative mortgage lenders that allow us to obtain the loan.

The question is if anyone here is familiar with the mortgage process for non-permanent residents and can recommend a lender.

Thanks!
Why not try a Lease to Own type program?? You provide an option deposit/payment in Year 1 that goes towards your future down payment, then a portion of your monthly payments will be credited back to your down payment for the eventual purchase of the property, when you are able to qualify for your own mortgage.

 

[Thomas Beyer]

QUOTE (Pabs @ Mar 28 2010, 01:59 AM) ..

The question is if anyone here is familiar with the mortgage process for non-permanent residents and can recommend a lender.
Ola Senior !

There are no "rules" for non-residents except that
a) you can own real estate in Canada as a non-resident
b) banks tend to be more conservative with lending to non-residents
c) you can get CHMC insurance up to 90% loan-to-value under certain circumstances .. see here: http://storage.ubertor.com/cl3576/content/document/138.pdf

As a rule of thumb, 65% loan-to-value should be very doable .. maybe 70% with decent income.

How much cash can you come up with ? Do you have decent income ?

On our first home in Ontario in 1993 I was a non-resident myself .. but with a decent job at IBM .. and then it was "no problem" .. but today it is a bit more conservative !

Ask a few banks .. and a few mortgage brokers .. 65% to 70% (but not 80% or more) should be doable for you with decent enough networth and income !

Muy Bien !

 

[RobMacdonald]

I`m not sure what circumstances the existing banker is coming across. It is possilbe to borrow up to 95% with the requirment to apply with 36 months of arriving in Canada.

You should check with some other brokers, we have access to lenders that can apply through CMHC and Genworth.

 

[Pabs]

QUOTE (ThomasBeyer @ Mar 28 2010, 12:36 PM) How much cash can you come up with ? Do you have decent income ?

On our first home in Ontario in 1993 I was a non-resident myself .. but with a decent job at IBM .. and then it was "no problem" .. but today it is a bit more conservative !

Ask a few banks .. and a few mortgage brokers .. 65% to 70% (but not 80% or more) should be doable for you with decent enough networth and income !

Muy Bien !

We have around 20,000 for the down payment so that`s why 65% LTV might not be an option. Our income is not that "decent" right now, however our TDS is looking really good since we don`t have any debts.

Right now we are working with a mortgage agent that might have a solution for our situation. I will post later comments on that.

Thanks for all the replies!

Pbs

 

[fumbrunner]

QUOTE (Pabs @ Apr 6 2010, 03:59 PM) We have around 20,000 for the down payment so that`s why 65% LTV might not be an option. Our income is not that "decent" right now, however our TDS is looking really good since we don`t have any debts.

Right now we are working with a mortgage agent that might have a solution for our situation. I will post later comments on that.

Thanks for all the replies!

Pbs

As a "temporary" foreign worker, I`m not sure if you would be able to get a mortgage. If you were to become a landed immigrant, that may be another story.

 

[Thomas Beyer]

QUOTE (Pabs @ Apr 6 2010, 02:59 PM) We have around 20,000 for the down payment so that`s why 65% LTV might not be an option. Our income is not that "decent" right now, however our TDS is looking really good since we don`t have any debts.

Right now we are working with a mortgage agent that might have a solution for our situation. I will post later comments on that.

Thanks for all the replies!

Pbs
2 options:
a) buy a property below $100,000 or
b) perhaps making more cash first is the answer ?

more on this here:


5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html
How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html

 

[Pabs]

Hello again,

Our mortgage has been pre-approved!
We found a broker in Moncton (Centum) that got us a mortgage through Scotiabank with a LTV of 95% and we`ve been pre-approved for up to $180,000 home price. We didn`t have much trouble for being non-permanent residents, and now we hope that everything goes as planned.

I just wanted to share the good news.

 

[Nicola]

Great to hear!

 

[walke]

Wow, 95% sounds solid. It`s good to know that it wasn`t bad considering you`re a non-resident. Congratulations on your new home. We have been looking in Calgary but haven`t found anything as of yet. So beautiful though!