Buying home on work permit, received AOR

[Dank]

Hi Friends,

I have applied for PR 2 months ago and have AOR. Is it advisable to buy home while on work permit? what could be implications if I dont get PR both financial and otherwise? I am planning to buy home in Alberta.

I am planning part 70% downpayment and 30% mortgage.

Thanks

 

[steaky]

Hi Friends,

I have applied for PR 2 months ago and have AOR. Is it advisable to buy home while on work permit? what could be implications if I dont get PR both financial and otherwise? I am planning to buy home in Alberta.

I am planning part 70% downpayment and 30% mortgage.

Thanks

If you don't get PR while you are outside Canada, your entering Canada will not be guarantee. If there is a major issue occured in the home such as flooding, you probably had to contact a contractor to resolve the problem. Best if you have a property manager to look after even if you are out of town.

 

[foodie69]

Does the bank loan money to people with only a work permit? Find out first..

 

[GandiBaat]

Hi Friends,

I have applied for PR 2 months ago and have AOR. Is it advisable to buy home while on work permit? what could be implications if I dont get PR both financial and otherwise? I am planning to buy home in Alberta.

I am planning part 70% downpayment and 30% mortgage.

Thanks

Assuming you are in Canada, there is one foreign buyer tax in many provinces. That is upto 20%. Then there is interest rate issue. A credit union might offer you a loan but you won't be able to shop around for low loan rates. Then there is issue of property tax. If you are not in Canada, unless you rent out it, you will have liability to pay those taxes. Finally, when you exit canada, you will be on the hook to pay capital gain tax upon exit. Any assets that you own in Canada will be deemed sold upon exit so you have to pay capital gain tax then and there.

 

[steaky]

Assuming you are in Canada, there is one foreign buyer tax in many provinces. That is upto 20%. Then there is interest rate issue. A credit union might offer you a loan but you won't be able to shop around for low loan rates. Then there is issue of property tax. If you are not in Canada, unless you rent out it, you will have liability to pay those taxes. Finally, when you exit canada, you will be on the hook to pay capital gain tax upon exit. Any assets that you own in Canada will be deemed sold upon exit so you have to pay capital gain tax then and there.

As owner, you are liable to pay property tax regardless you are in the country or outside the country. Any assets that you own worldwide (not only in Canada) will be deemed sold upon exit.

 

[GandiBaat]

As owner, you are liable to pay property tax regardless you are in the country or outside the country. Any assets that you own worldwide (not only in Canada) will be deemed sold upon exit.

Yes, to be more precise.
What I meant was, if the property is not rented out, the property tax liability will hurt them as a owner because property is not making any money.
For exit part, yes ALL the world-wide assets are deemed sold. In this case, since they are only considering their Canadian property, thats one will be one additional liability.