!!! Buying a home in Canada as a newcomer !!!

[saki]

Buying a home in Canada as a newcomer

Buying a home is a dream-come-true for many. And the thought of buying a piece of land in Canada as an immigrant makes it all the more exciting since Canada is home to a large number of immigrants from different nations.

However, to make the process smooth, you need to follow certain steps—

Know your eligibility for buying a home in Canada—To be eligible for buying a house in Canada, you must—

• Have immigrated (including relocation) to Canada within the last 36 months;

• Have a minimum of three months full time employment in Canada;

• Include all debts held by you outside the nation in debt servicing ratios.

Various documents required—

• Income verification;

• Valid work visa or got landed immigrant status;

• Confirmation of down payment;

• Sale and Purchase agreement;

• Letter of reference of any recognized financial institute or bank statements of last six months from primary account.

Steps for buying---

• Decide on the location—Since Canada is a big nation and each region or province has its own set of advantages. Immigrants can make use of internet to know various geographic locations.

• Consult realtor—You can ask a realtor about various regulations applicable to immigrants wanting to purchase land or a house in Canada.

• Begin search—After getting an idea about the properties you are interested in, you need to proceed ahead by applying for a mortgage. As an immigrant, one may find it difficult to get a lender willing to provide money.

• Processing application—You need to find a qualified Canadian resident for drawing up your paperwork. You need to complete the entire process of registration at any nearest office of Land Titles in Canada.

• Choose your property—Choose the property of your liking and make an offer of buying. After acceptance of your offer, you need to put down 35 percent of total property cost. You can get remaining 35 percent of the cost from any American money lender.

• Role of attorney—An attorney is of significance in buying a property in Canada since he will check various documents concerning purchase process. You need to submit all relevant documents and get mortgage documents. Don't forget to read these carefully.
  

Are you applying for Mortgage ? ?

Before applying for a mortgage, normally you would need following documents:

- A copy of the accepted Offer To Purchase and the land survey.
- A salary letter from your employer.
- Self-employed individuals need financial statements for the past three years as well as personal income tax returns.
- Confirmation that your down payment came from your own resources (i.e. bank statements or a gift letter).
- A list of all your assets and debts along with account numbers.
- A copy of the Real Estate Listing if buying an existing home.
- Condominium financial statements, if applicable.
- If you are buying a home to be constructed, bring a picture of the property, a copy of the building plans and specifications, the land survey, plus your agreement with the builder.
- Your mortgage agent can help you determine how much you can afford, and you've selected a Mortgage that's right for you. This allows you to act quickly when you find the perfect home. As soon as your real estate agent draws up an Offer To Purchase between you and the vendor, setting up agreement fixing the final price and all the conditions of sale and your deal is almost complete.

Before Signing the Offer make sure that you get the right combination of price and service from your lawyer as from your real estate agent viz; Competitive fees, excellent service, knowledgeable, approachable and, in a word, VALUE for money.

It's not a bad idea to involve your lawyer before you sign the Offer, which becomes the legal Agreement of Purchase and Sale once signed by both the buyer and seller. If you wish, have your lawyer read the document carefully and review it with you. Once signed and accepted, your lawyer will order a series of searches from various municipal offices. This is to ensure that the vendors have not been sued and that they have paid all of their realty taxes, hydro, water and gas bills; and that there will be no old mortgages or liens on the property once you become the owner.

Your lawyer will also draft a series of closing documents, and will review the closing documents drafted by the lawyer for the vendor, since both lawyers participate in this process.

Your bank and lawyer will co-ordinate and draft the appropriate documents. Your lawyer will notify the property tax offices as well as the utility offices that you will be the new owner as of the closing day.

When it comes to the largest purchase in one's life, the key phrase is ``you'd better shop around``. Don't settle on the first home you see.

Before hiring a real estate consultant, do check whether they have any special affiliations or packaged discount programs with other corporations where you can save on your mortgage, on moving costs or on household purchases for your new home? You'll want to work with someone you relate to, with whom you have some chemistry, and who offers you excellent service and value. Make sure you ask if the Realtor is acting for a vendor or for you.
This way you would make House Hunting a fun. You can have more information from Banks, as well as CMHC, the Canadian Bankers` Association, the Ontario Real Estate Association and the Home Builders` Association all have brochures to make a informed decision.

 

[jnathan]

How many in this forum has bought a house in Canada in the 1st 2 years of their landing?

[Canooknic]

My fiancé landed as PR in May and we have just signed off on a new-build home.  We were lucky enough to have a 15% down payment and he started work in July somcould provide the proof of employment.

[caribgrl55]

Saki, what does the following mean? "• Include all debts held by you outside the nation in debt servicing ratios."

Do they actually ask for all your debts even thought they are not Canadian? If they do, it's kind of sad that they do not also consider your credit rating from another country like the US

[scylla]

Saki, what does the following mean? "• Include all debts held by you outside the nation in debt servicing ratios."

Do they actually ask for all your debts even thought they are not Canadian? If they do, it's kind of sad that they do not also consider your credit rating from another country like the US

Unfortunately your credit ratings from other countries (the US included) do not transfer to Canada. My husband experienced this first-hand when he became a PR. He has beyond excellent credit in the US and plenty of assets. However he had trouble getting a normal credit card when he first landed in Canada without me acting as a co-signer.

Yes - it sucks. But that's how it works...

[Canooknic]

We got a BMO credit card and my car finance with our UK credit rating - maybe we were just lucky 

[staralihaider]

Buying a home in Canada as a newcomer

Buying a home is a dream-come-true for many. And the thought of buying a piece of land in Canada as an immigrant makes it all the more exciting since Canada is home to a large number of immigrants from different nations.

However, to make the process smooth, you need to follow certain steps—

Know your eligibility for buying a home in Canada—To be eligible for buying a house in Canada, you must—

• Have immigrated (including relocation) to Canada within the last 36 months;

• Have a minimum of three months full time employment in Canada;

• Include all debts held by you outside the nation in debt servicing ratios.

Various documents required—

• Income verification;

• Valid work visa or got landed immigrant status;

• Confirmation of down payment;

• Sale and Purchase agreement;

• Letter of reference of any recognized financial institute or bank statements of last six months from primary account.

Steps for buying---

• Decide on the location—Since Canada is a big nation and each region or province has its own set of advantages. Immigrants can make use of internet to know various geographic locations.

• Consult realtor—You can ask a realtor about various regulations applicable to immigrants wanting to purchase land or a house in Canada.

• Begin search—After getting an idea about the properties you are interested in, you need to proceed ahead by applying for a mortgage. As an immigrant, one may find it difficult to get a lender willing to provide money.

• Processing application—You need to find a qualified Canadian resident for drawing up your paperwork. You need to complete the entire process of registration at any nearest office of Land Titles in Canada.

• Choose your property—Choose the property of your liking and make an offer of buying. After acceptance of your offer, you need to put down 35 percent of total property cost. You can get remaining 35 percent of the cost from any American money lender.

• Role of attorney—An attorney is of significance in buying a property in Canada since he will check various documents concerning purchase process. You need to submit all relevant documents and get mortgage documents. Don't forget to read these carefully.
  

Are you applying for Mortgage ? ?

Before applying for a mortgage, normally you would need following documents:

- A copy of the accepted Offer To Purchase and the land survey.
- A salary letter from your employer.
- Self-employed individuals need financial statements for the past three years as well as personal income tax returns.
- Confirmation that your down payment came from your own resources (i.e. bank statements or a gift letter).
- A list of all your assets and debts along with account numbers.
- A copy of the Real Estate Listing if buying an existing home.
- Condominium financial statements, if applicable.
- If you are buying a home to be constructed, bring a picture of the property, a copy of the building plans and specifications, the land survey, plus your agreement with the builder.
- Your mortgage agent can help you determine how much you can afford, and you've selected a Mortgage that's right for you. This allows you to act quickly when you find the perfect home. As soon as your real estate agent draws up an Offer To Purchase between you and the vendor, setting up agreement fixing the final price and all the conditions of sale and your deal is almost complete.

Before Signing the Offer make sure that you get the right combination of price and service from your lawyer as from your real estate agent viz; Competitive fees, excellent service, knowledgeable, approachable and, in a word, VALUE for money.

It's not a bad idea to involve your lawyer before you sign the Offer, which becomes the legal Agreement of Purchase and Sale once signed by both the buyer and seller. If you wish, have your lawyer read the document carefully and review it with you. Once signed and accepted, your lawyer will order a series of searches from various municipal offices. This is to ensure that the vendors have not been sued and that they have paid all of their realty taxes, hydro, water and gas bills; and that there will be no old mortgages or liens on the property once you become the owner.

Your lawyer will also draft a series of closing documents, and will review the closing documents drafted by the lawyer for the vendor, since both lawyers participate in this process.

Your bank and lawyer will co-ordinate and draft the appropriate documents. Your lawyer will notify the property tax offices as well as the utility offices that you will be the new owner as of the closing day.

When it comes to the largest purchase in one's life, the key phrase is ``you'd better shop around``. Don't settle on the first home you see.

Before hiring a real estate consultant, do check whether they have any special affiliations or packaged discount programs with other corporations where you can save on your mortgage, on moving costs or on household purchases for your new home? You'll want to work with someone you relate to, with whom you have some chemistry, and who offers you excellent service and value. Make sure you ask if the Realtor is acting for a vendor or for you.
This way you would make House Hunting a fun. You can have more information from Banks, as well as CMHC, the Canadian Bankers` Association, the Ontario Real Estate Association and the Home Builders` Association all have brochures to make a informed decision.

 

Dear saki plz Give some helpfull source links for this.

[gjp]

Unfortunately your credit ratings from other countries (the US included) do not transfer to Canada. My husband experienced this first-hand when he became a PR. He has beyond excellent credit in the US and plenty of assets. However he had trouble getting a normal credit card when he first landed in Canada without me acting as a co-signer.

Yes - it sucks. But that's how it works...

If you have a card with American Express you can easily get a Amex credit card in Canada. They transfer the credit history to Canada. Check the below link:
https://www.americanexpress.com/global-card-transfers/
When I moved from US to Canada, getting a Canadian Amex card was just a phone call away and I received the card in less than two weeks.
Also, when I purchased my car and financed it through Honda finance, they checked my credit history in US to give me the car loan as it was just a week after I came to Canada and I had zero credit history in Canada.
It is not always true that they do not consider your US credit history. Some do and most others dont. We just need to check.

[gjp]

In addition to my earlier post ....

That being said, once you get your credit card or car loan, you begin to build your Canadian credit history from scratch. Your US credit history does not get transfered entirely to your Canadian credit history, though they have the same credit bureau in Canada like in the US (equifax, transunion, etc)

[Canooknic]

I think it's the same for a Virgin credit card. We called to say we were closing our UK account and they offered to put us through to get one for over here.  I might have just got a helpful member of staff though!!

If you have a card with American Express you can easily get a Amex credit card in Canada. They transfer the credit history to Canada.