Non-Resident Mortgage Options

[swestenzweig]

My wife and two children live in Canada; I am living in the US. My PR application has been submitted, and we are anxiously expecting SA any time now. We began renting a home last year in what we believed to be a long-term arrangement. The intent was to rent a home to give us some stability at least until I can land, the expenses of immigration are behind us, and we can begin the home buying process in earnest. We've just received word from our landlord that he's negotiating an offer on the home (the house was not listed, but our landlord was approached by a third-party for a private sale), which would give us 90 days from the date of sale to find a new residence.

In an attempt to soften the blow, our landlord has given us the option to purchase the home for the asking price. If I were a resident, this would stretch us financially but we could have made it work for the sake of continuity for our 4 month old son and 5 year old daughter enrolled in school for the fall. Unfortunately, as a non-resident, my options are severely limited.

I've been working with our Canadian bank to secure mortgage financing. As my wife is on maternity leave (and is self-employed as a freelance writer), it is my income that will be the primary support for the loan. However, as the bank classifies me as a non-resident, the only way the bank can write the loan is if we provide 35% of the purchase price of the home as a down payment. At that figure, there is no way for us to conceivably purchase any home within the area, never mind the one we're being offered.

Does anyone have any experience trying to secure a mortgage while still technically a non-resident? How did you approach this restriction? Where did you go to get financed?

Thank you so much in advance for any input. The additional stress of my wife and kids losing our home is almost too much at this stage.

 

[Garry2008]

My wife and two children live in Canada; I am living in the US. My PR application has been submitted, and we are anxiously expecting SA any time now. We began renting a home last year in what we believed to be a long-term arrangement. The intent was to rent a home to give us some stability at least until I can land, the expenses of immigration are behind us, and we can begin the home buying process in earnest. We've just received word from our landlord that he's negotiating an offer on the home (the house was not listed, but our landlord was approached by a third-party for a private sale), which would give us 90 days from the date of sale to find a new residence.

In an attempt to soften the blow, our landlord has given us the option to purchase the home for the asking price. If I were a resident, this would stretch us financially but we could have made it work for the sake of continuity for our 4 month old son and 5 year old daughter enrolled in school for the fall. Unfortunately, as a non-resident, my options are severely limited.

I've been working with our Canadian bank to secure mortgage financing. As my wife is on maternity leave (and is self-employed as a freelance writer), it is my income that will be the primary support for the loan. However, as the bank classifies me as a non-resident, the only way the bank can write the loan is if we provide 35% of the purchase price of the home as a down payment. At that figure, there is no way for us to conceivably purchase any home within the area, never mind the one we're being offered.

Does anyone have any experience trying to secure a mortgage while still technically a non-resident? How did you approach this restriction? Where did you go to get financed?

Thank you so much in advance for any input. The additional stress of my wife and kids losing our home is almost too much at this stage.

Banks in Canada will not Approve Mortgage without certain amount as Down payment for Non resident as they need to secure their Investment.CIBC and TD Require 35% minimum.Why not rent Another home in Same City around your Area.I am Sure there will be a lot of housing and Apartment for Rent.Most of them are Listed Online so you can also check it online and then your Wife can Make sure that is is good Home or Apartment to Rent out.

 

[Ponga]

My wife and two children live in Canada; I am living in the US. My PR application has been submitted, and we are anxiously expecting SA any time now. We began renting a home last year in what we believed to be a long-term arrangement. The intent was to rent a home to give us some stability at least until I can land, the expenses of immigration are behind us, and we can begin the home buying process in earnest. We've just received word from our landlord that he's negotiating an offer on the home (the house was not listed, but our landlord was approached by a third-party for a private sale), which would give us 90 days from the date of sale to find a new residence.

In an attempt to soften the blow, our landlord has given us the option to purchase the home for the asking price. If I were a resident, this would stretch us financially but we could have made it work for the sake of continuity for our 4 month old son and 5 year old daughter enrolled in school for the fall. Unfortunately, as a non-resident, my options are severely limited.

I've been working with our Canadian bank to secure mortgage financing. As my wife is on maternity leave (and is self-employed as a freelance writer), it is my income that will be the primary support for the loan. However, as the bank classifies me as a non-resident, the only way the bank can write the loan is if we provide 35% of the purchase price of the home as a down payment. At that figure, there is no way for us to conceivably purchase any home within the area, never mind the one we're being offered.

Does anyone have any experience trying to secure a mortgage while still technically a non-resident? How did you approach this restriction? Where did you go to get financed?

Thank you so much in advance for any input. The additional stress of my wife and kids losing our home is almost too much at this stage.

With your U.S. dollar being worth ~ 15% more in Canada...can you approach your U.S. bank (since you're still there) and see if they can help you? Do they offer financing for a home in Canada?

The down payment requirements are much lower in the U.S., and if the bank has a Canadian presence, they may be able to eventually transfer the mortgage to Canada after you become a PR.

Good luck!

 

[scylla]

With your U.S. dollar being worth ~ 15% more in Canada...can you approach your U.S. bank (since you're still there) and see if they can help you? Do they offer financing for a home in Canada?

This unfortunately won't work because the US bank needs collateral against the loan - and a home in Canada doesn't qualify. They can't sieze a home in Canada if there's a default.

 

[Garry2008]

This unfortunately won't work because the US bank needs collateral against the loan - and a home in Canada doesn't qualify. They can't sieze a home in Canada if there's a default.

Agree with you.It will be Impossible to take possession to seize Home in Canada for Foreign Bank.

 

[swestenzweig]

Thank you for your responses.

I verified with my bank in the US: they would not write a mortgage for a property in Canada.

As for alternative rentals, we're exploring that option. To avoid disrupting my daughter's school (she starts her first year of public school in the fall) and minimize the number of school changes, we need to stay within the same school district. That's difficult as the area we're in doesn't have any apartment complexes, which leaves us renting another home... of which there are precious few.

 

[Garry2008]

Thank you for your responses.

I verified with my bank in the US: they would not write a mortgage for a property in Canada.

As for alternative rentals, we're exploring that option. To avoid disrupting my daughter's school (she starts her first year of public school in the fall) and minimize the number of school changes, we need to stay within the same school district. That's difficult as the area we're in doesn't have any apartment complexes, which leaves us renting another home... of which there are precious few.

You are Welcome.
Yes I understand it is difficult to find a good rental property.As US Bank do not Qualify for this Option now Rental is a best Option.Well Best of Luck

 

[J2911]

Hi,

My partner and I just purchased a house three months ago. He is Canadian and my PR is in process (I am on a post grad work permit). Our mortgage is through centric and we are both on the mortgage and paid 5%. They initially asked for 20% but we had an excellent mortgage broker who pleaded our case. Genworth was our next best option but they requested 10%.

 

[J2911]

I should also mention that I went through the new to Canada program.

 

[Garry2008]

I should also mention that I went through the new to Canada program.

Is mortgage is Given to you as Base Mortgage Holder or your Canadian Partner ?

 

[J2911]

Mortgage is in both our names. He made more money than I did so that helped too but he didn't qualify without my income.
Google Genworth-New to Canada program, it'll help.

 

[Garry2008]

Mortgage is in both our names. He made more money than I did so that helped too but he didn't qualify without my income.
Google Genworth-New to Canada program, it'll help.

Ok so this Part will not be applicable to him as His Partner is Not working Now and Do not have More Money than Him.

As Per his Question
His wife is on maternity leave (and is self-employed as a freelance writer), it is His income that will be the primary support for the loan.

 

[J2911]

"Does anyone have any experience trying to secure a mortgage while still technically a non-resident? How did you approach this restriction? Where did you go to get financed?"

I was just answering his above question.

My partner and I have a mortgage, through centric. I am a non-resident (PR in process). My partner makes more money than I do. I also didn't have a full time permanent job so they looked at two years of my T4s (which they could do with his wife even if she is on maternity leave).

 

[Mapleson]

Three items: first, have you considered Credit Unions at all? In general, they are more flexible and willing to consider specific circumstances; second, have you looked at short-term private party loans? Third, have you mentioned the issue to your landlord? They may be willing to wait until you are landed to finalize a sale.

All that said, I think you are probably overvaluing importance of the "stability" for a 5 year old that hasn't started school. I personally went to 5 different schools between the ages of 4 and 7 (K-2) and 10 schools in total (K-12). The result was that I was much better at learning new systems of teaching and much more practiced in making friends.

 

[swestenzweig]

Thank you everyone for the replies and the advice. While the situation is not completely resolved, my wife and I feel much better about our prospects at this stage. We were originally working with RBC Bank to secure a mortgage, not realizing that RBC is among the most conservative of all Canadian banks in terms of risk. Our mortgage officer was absolutely tireless in her efforts to try and get us beyond the 65% LTV requirement and we explored every conceivable option... to no avail.

I spoke to TD Canada Trust, and immediately our options improved. As long as one of the borrowers is a resident, they can offer a mortgage at 90% LTV (10% downpayment). We have an appointment with them tomorrow to review our application formally.

If that fails to yield the kind of results we're looking for, we've got a broker we're prepared to discuss options with, too.

I did speak to Genworth, as well. They only provide the insurance for mortgages (they do not originate them), but they gave me a bit more assurance that securing a mortgage was possible from a Canadian lender. Clearly, depending on the bank.