Buying a property in Canada

[sho78]

Hi,
I'm living overseas and want to buy a property in Canada. I was applying for mortgage and there comes up a requirement of job letter with salary stated on it. I don't have a problem providing that but I dont want the revenue agency to know that I'm employed outside Canada. Does the job letter required by the mortgage brokers or the banks stocks to themselves or the can give information to others too.?

 

[steaky]

You should talk to your bank whether the information you provided would be revealed to third parties.

 

[torontosm]

Hi,
I'm living overseas and want to buy a property in Canada. I was applying for mortgage and there comes up a requirement of job letter with salary stated on it. I don't have a problem providing that but I dont want the revenue agency to know that I'm employed outside Canada. Does the job letter required by the mortgage brokers or the banks stocks to themselves or the can give information to others too.?

You should also be aware that by buying a property in Canada (assuming you are Canadian or a PR), you are establishing ties to this country and are greatly increasing the risk that you will be classified as a resident for tax purposes. If that does happen, all of your global income becomes taxable.

 

[ALRIVAS]

HI anybody can purchase real estate in Canada as long as he or she can prove they can pay for it legally.

Nonresidents must give 20% down payment of the value of the property if they can show credit report from US,UK,Australia or other country that has credit records.

If you don't have a credit report then you must put 35% as down payment and show where the money if coming from as well as your income,
can be a job letter or bank and company statements if you own a company.

It must be disclose the use of the property (investment,personal use,principal home).

Also consider closing cost it will be around 2% or 3% of the value of the property depending where the property is located.

I'm Realtor in Toronto and the GTA.

Please visit my site for more info alrivas. com

 

[steaky]

You should also be aware that by buying a property in Canada (assuming you are Canadian or a PR), you are establishing ties to this country and are greatly increasing the risk that you will be classified as a resident for tax purposes. If that does happen, all of your global income becomes taxable.

This is incorrect. The OP did not specify what property it going to buy. It could be commercial, industrial or bare land. Only if you establish a home in Canada, would you establishing ties to this country.

 

[torontosm]

This is incorrect. The OP did not specify what property it going to buy. It could be commercial, industrial or bare land. Only if you establish a home in Canada, would you establishing ties to this country.

Fair enough...I had assumed that it was going to be a residential property purchase, but you are correct.

 

[Msafiri]

Hi,
I'm living overseas and want to buy a property in Canada. I was applying for mortgage and there comes up a requirement of job letter with salary stated on it. I don't have a problem providing that but I dont want the revenue agency to know that I'm employed outside Canada. Does the job letter required by the mortgage brokers or the banks stocks to themselves or the can give information to others too.?

Your efforts to hide your overseas employment may be illogical if Canada has a tax treaty with the the income source country. This prevents double taxation unless you are in a tax free situation? Also if a PR what do you plan to do at PR Card renewal...CIC want Notices of Tax Assessments or your application is likely going the scenic route!

 

[sho78]

Wats better applying mortgage from a broker or a bank .....quick replies appreciated.

 

[ALRIVAS]

Mortgage Broker will in most cases offer you a better rates than banks.
Banks have a game to play,you tell them I'm going to see the rates of the bank in front then they tell you is ok I'm giving you the best rate then you go across the street and they give you 1/2 % less then you comeback to the first bank and tell them i was offered 1/2 % less acroos the street and they tell you ooh i give you 3/4 % less now it just changed.
Long story short bank's no good.
You get a mortgage from a Broker in most cases they work with financial institutions wish means if you ever have question regarding your mortgage and you call them the person on the other side of the phone will know what you are talking about and they will answer right away.
Banks you call the branch where you got your mortgage the person who did it also does line of credits,bank accounts,insurance,car loans,GICs and as always they have 0 idea what you are asking so they tell you call our credit department then they tell you have to call to the mortgage department then aah that's the residential division by now you are about to hang your self.
One last thing they have something called pre-approval letter it means you can buy a property but is all based on their perception of your income and deposits records.
I have been working in Real Estate for 11 years and in my first year lost 3 transactions thanks to a bank who pre-approved my clients with a letter that was only good start a fire we went looked for houses put offers gave deposits and then no mortgage.

For more info visit alrivas. com

 

[preeti22]

contact with your real estate agents or the bank.

 

[ohanne]

Am in the process of my pr application in winnipeg. I just want to do some planning just in case we will be approve. I am thinking of buying a 3bedroom house...my question how can i get a mortgage, down payment and what requirements to i need. Defintely i have no credit history yet, no work but have some relatives who can be a guarantor.

Hope you can enlighten me for my settlement plan...thanks

 

[steaky]

Am in the process of my pr application in winnipeg. I just want to do some planning just in case we will be approve. I am thinking of buying a 3bedroom house...my question how can i get a mortgage, down payment and what requirements to i need. Defintely i have no credit history yet, no work but have some relatives who can be a guarantor.

Hope you can enlighten me for my settlement plan...thanks

You don't know how to pay a down payment?

When you buy a house, usually you pay a deposit to the seller first. The deposit would be part of your downpayment. Unless you have credit line, you might have to pay the deposit from your own savings or borrow from someone else. For more details, ask your realtor and bankers.

http://www.cmhc-schl.gc.ca/en/co/buho/

 

[ohanne]

You don't know how to pay a down payment?

When you buy a house, usually you pay a deposit to the seller first. The deposit would be part of your downpayment. Unless you have credit line, you might have to pay the deposit from your own savings or borrow from someone else. For more details, ask your realtor and bankers.

http://www.cmhc-schl.gc.ca/en/co/buho/

Thanks for sharing the site...steaky, i know how to pay down payment...i just want an idea how it is being done or computed in canada. The site you shared is useful

 

[Vaughancondos]

Well that was useful for me too. I was searching for homes for sale in Vaughan and luckily I find this thread and I came to know many things. Thank You so much all.

 

[mortgageprofessional]

You could qualify for:

Partial Disclosure:
No confirmation of employment required
No confirmation of income required

Up to 65% Loan to Value
Up to $1 Million

Hope this helps