Buying a house in Alberta

[tyt2012]

Hi,

I have my PGWP since July 2011, I have been working for 2 years++, just sent my CEC application. I understand the process for getting the PR is about 12-13 months, which mean I might not get my PR approved not until Dec 2014.

I am planning to buy a house in Alberta. However, I went to RBC mortgage specialist to get mortgage pre-approval in August. They said that my PGWP is going to expire in July 2014 and I am not PR, so they rejected me.

What can I do now to get a mortgage pre-approval. Since the banks are unable to approve my mortgage, what about mortgage broker? Does anyone have experience with mortgage broker? I have my 10%-20% down payment ready. Good credit.

Any suggestions. Thanks.

 

[Rossei]

As a non PR/Citizen of Canada, you may have to make 30% (or even more) down payment in order to convince a lender. But I would suggest you to go to your own bank (if not RBC) and ask their opinion about it.

Apart from it, are you aware of the fact that you cannot extend PGWP unless your employer applies for an LMO and you get approved for a closed WP? If your WP is expiring before your estimated PR time; you should look into this first before buying a fixed property. I wonder why you waited 2 years to apply in CEC category.

 

[tyt2012]

Don't you know that you can apply BOWP for extension your PGWP while you are waiting your PR approval.

 

[Rossei]

Yes, if you have received AOR by March, 2014.

 

[tyt2012]

Yes. I just sent my applications today. Hoping to get AOR before Jan 2014.
I just received a call from a mortgage broker this morning, she told me that one of the lender might consider my situation...but she still needs me to go to her office to talk to her and shows her my employment history, salary, etc.

If my mortgage get approved before my PR approval, it that too risky to get a property?

 

[Rossei]

If my mortgage get approved before my PR approval, it that too risky to get a property?

I don't think so. You can have a property; but the lender may force you to buy additional mortgage insurances (with higher interest rate + downpayment) since you're not PR yet.

I've been writing a long post for this forum re: first time home buying experience as I bought mine last month. I didn't finish it yet. From what I've seen for last few years, mortgage interest rate goes minimum around March-April (don't know about Alberta). For example, it went down to 2.89% (5-year fixed) in April at BMO while most of the banks are sitting at 3.49% to 3.89% right now. That's one of the things to consider. I also assume most houses come on sale during Summer-Fall period. Other than that, it will take few months to finally settle in a house from the time of pre-approval [each bank will give you a valid time window (90~120 days) of the pre-approval rate].

These are the things you may consider before buying a house. Without PR, you may go through some monetary loss; but nothing major in risk factors.

 

[tyt2012]

Thanks. Will keep reading your post.

 

[Pouce]

Hi tyt2012. you can buy a house with working permit for sure. I did it. I had a PGWP for 3 years and 3rd year on PGWP I bought a house, got a mortgage from Scotia bank. I tried TD bank and credit union but they are not friendly as scotia bank. are you sure you can get PR or working permit? I would recommend you should wait until you get PR. but if you are confident for being able to get PR or working permit in next few years, buy a house. go for it. show bank to 20% or over for down payment. buying a house is cheaper than rent in Canada.

 

[tyt2012]

Thanks Pouce. I am waiting for AOR, I believe I will have it before New Year. For sure buying a house is cheaper than renting an apartment.

 

[neetu1]

Hi,
I was going through forms and found this one pretty helpful as We are living in Montreal and planning to move to Alberta soon, and as you all know it is true renting apt is much more expensive if you think for long run . We recently got PR of Canada and Montreal seems not to be our final destination (all those language issues).
I would like to ask you guys that are houses cheaper in Alberta than other provinces? I know for sure pay is better in Alberta than Quebec plus less taxes you pay than Quebec but what about other things like car insurances ? property?
Any help would be appreciated.