Newcomer PR mortgage questions

[steaky]

And see, this is why it's even more important to see the location.... there is a lot of dog/pet theft that occurs for ransom in Canada. So what is your area like for pet safety? Is it close to dog parks? Are houses in that area fully fenced so that you have a secure perimeter? etc.

How do you know there are dog/pet ransom in Canada? Seen pictures of pets being lost posted on utility poles on the street. Thought pets might be taken by predators such as coyote for food. Fully fenced does not mean pet is secured. Bears can easily climb fences and sighted in dog parks.

 

[steaky]

Talking to people means absolutely nothing and I very VERY highly doubt you understand what safe vs unsafe is if you haven't even set foot on this country. This is not some decision you can make virtually, you really need to be here to get a feel for the aesthetics, people, character and amenities of each area before making a decision for yourself.

Yeah big banks don't want to touch you for a mortgage unless your credit score is 700+, and that can take up to a year. While that sounds inconvenient I think it's a good thing as you're better off renting, building your score and taking the time to really assess where exactly you'd like to live.

Google Maps and chatting on forums are not substitutes for a decision like this... you're marrying a house, you better well be 200% on what you're doing here because it will shape the rest of your life.

No, you're not marrying a house. It will not shape the rest of your life. Do you share your spouse with a total stranger and in some cases, update your relationship with the governnment in annual basis?

Renting is not better off. They would still require to stay there until the lease end. Airbnb for week would be a more better idea.

 

[GandiBaat]

You posed that question to Gandibaat. I cannot speak for that poster, but I do not see credit unions as being "easily open to lending to someone who has no credit history". Their policies, in some instances, might be more relaxed. By no means a sure thing.

No harm in talking to a mortgage broker or two. They might well hook you up with a lender in the secondary market, which will almost certainly come at a cost of 1 or 2 points (or more) in interest rate.

Thats why I asked him to talk to Mortgage Brokers. Its a no obligation thing. Also, credit unions are not as regulated as banks. So, they have significant freedom in lending.

Lastly, for the amount he is borrowing (>300K), 1-2% is not really big deal for a short term. 1-2 years later, he can move his mortgage to another lender with better rates.

 

[iSaidGoodDay]

Thought pets might be taken by predators such as coyote for food. Fully fenced does not mean pet is secured. Bears can easily climb fences and sighted in dog parks.

Damn! Checked the location I'm looking at, very few bear sightings there. Coyotes are plenty though.

 

[GandiBaat]

Damn! Checked the location I'm looking at, very few bear sightings there. Coyotes are plenty though.

Canada is like that only. Leaving near downtown places, lot of places have wildlife infiltration.

I am not really worried about pets, more worried about kids. People living in "Bear Country" carry bear spray.

 

[steaky]

Canada is like that only. Leaving near downtown places, lot of places have wildlife infiltration.

I am not really worried about pets, more worried about kids. People living in "Bear Country" carry bear spray.

Even downtown places can have wildlife infiltration. Think about the street rats in New York City.

 

[GandiBaat]

Even downtown places can have wildlife infiltration. Think about the street rats in New York City.

I think "rats" are not really wildlife as bears are. Anyways its a question of semantics.

 

[iSaidGoodDay]

Update: Checked with two realtors and a two mortgage brokers. They both said at this downpayment I can get a mortgage pre-landing too. So for a pre-landing mortgage, called my bank that also has a branch in Canada. They confirmed if I can meet the criteria I said I've got, they'll be fine sharing my credit history and getting my mortgage pre-approved.

Now, about the safety, good schools near by, etc. I ended up selecting a posh location for now. Houses are still affordable, freehold houses are a bit less, detached are bit lesser.

Next things on my mind:
1. Work towards getting a mortgage approval. Best fit if I can get this mortgage pre-approved from here.
2. See if I can buy detached house, if not then figure out whole Condo/Strata thing. The later feels like a pain to deal with as I've got PTSD from dealing with Indian equivalent of Condos.

Will update as I move through this and succeed/fail.

 

[moscatojuices]

I think you're too smart. 19 days to PPR and then 19 days to mortgage. Okay.

 

[iSaidGoodDay]

I think you're too smart. 19 days to PPR and then 19 days to mortgage. Okay.

If I discard the trolling, the real timeline easily is a minimum of 2 months to get the mortgage approval.

 

[steaky]

Update: Checked with two realtors and a two mortgage brokers. They both said at this downpayment I can get a mortgage pre-landing too. So for a pre-landing mortgage, called my bank that also has a branch in Canada. They confirmed if I can meet the criteria I said I've got, they'll be fine sharing my credit history and getting my mortgage pre-approved.

Now, about the safety, good schools near by, etc. I ended up selecting a posh location for now. Houses are still affordable, freehold houses are a bit less, detached are bit lesser.

Next things on my mind:
1. Work towards getting a mortgage approval. Best fit if I can get this mortgage pre-approved from here.
2. See if I can buy detached house, if not then figure out whole Condo/Strata thing. The later feels like a pain to deal with as I've got PTSD from dealing with Indian equivalent of Condos.

Will update as I move through this and succeed/fail.

3) You can also check semi-detached such as Duplex and Triplex.

 

[canuck78]

You posed that question to Gandibaat. I cannot speak for that poster, but I do not see credit unions as being "easily open to lending to someone who has no credit history". Their policies, in some instances, might be more relaxed. By no means a sure thing.

No harm in talking to a mortgage broker or two. They might well hook you up with a lender in the secondary market, which will almost certainly come at a cost of 1 or 2 points (or more) in interest rate.

When I bought my first house in Vancouver, I was a student. I had no credit card. No credit history. In debt. I did not even ask any commercial lender. They would have laughed at me. I found a vendor who was willing to finance the house they were selling. I put about 20% down and the vendor carried the balance for 5 years (I sold and paid them out after 3 years). Sellers often worry less about you showing great credit. They know their property and its virtues and often will finance because they do not really fear taking it back should you default. An older seller, who is getting out of the housing market, will often be content to finance. They'll get more in mortgage interest than they will by dumping the sales proceeds into a bank account.

That is a highly unusual situation. Most sellers want a clean sale.

 

[moscatojuices]

That is a highly unusual situation. Most sellers want a clean sale.

A student buying their first house in Vancouver without any credit history. It's not highly unusual, it's probably a lie. I came to Canada with $1.5m wealth on paper (my pension, cash, rentals & stocks from UK, accumulated over 15 years). TD wouldn't even give me a $1k credit card until 6 months into my work permit.

2 years later I tried to buy a really nice condo to live in but wanted to rent it back to the seller first so that she had time to sort her affairs. As a result it would be an investment loan. It was only $200k, so I offered $60k deposit and the bank refused to lend based on my credit history and because it would be higher risk in terms of a rental.

I finally nagged a nice home for life for $250k in Regina in the last few weeks as I worked hard on building that score to nearly 800.

So forgive me for not believing that some student in Vancouver without a conventional mortgage. Sounds like fantasy stuff.

 

[steaky]

Not a lie at all. Call me a liar when you have proof. Why would I bother to lie? To what end?

In the years that I practiced law in Vancouver, I saw this done multiple times, not just me. Ask any Vancouver real estate lawyer. When I bought, the market was softening. The vendor was motivated to sell. With money borrowed from family and saved Ontario student loan money, I came up with the approx. 20% down payment. The vendor financed by way of agreement for sale (essentially a vendor take back mortgage) at 11% for 5 years. The house was a triplex in Kitsilano. I lived on the main floor and rented the upstairs and the basement.

Tell ya' what smartass. Because I know I can prove it, put your money where your mouth is. I'll bet you $10,000 I can prove my words. No, I do not have my own records going back that far, but the proof will be at the Vancouver Land Title Office. It will show me as purchaser by way of A/S for that specific Kits property, it will show the name of the vendor (her initials were KS, all I'll say here now, and the property was on West 7th Ave., west of Blenheim St.) and that the A/S was paid out in full when I sold 3 years after purchase. As someone who practised some real property law in Vancouver, I know what the records will show. You can name a Vancouver law firm. We both pay $10,000 into that firm's trust account. If I am right, the law firm pays out $20,000 to me, less the firm's reasonable fees and disbursements as stakeholder. If you are right, you get the $20,000. If you want to wager more, I'll agree, up to $100,000. My thoughts on the exact mechanics of this are a bit inchoate at the moment, as I am dashing off a quick response to your most offensive calumny. But the details can easily be worked out.

As an indicator of how wrong you are, I recently commented on this forum that, having received 3 TRV rejections in a row, my wife's PR application would likely fail. Even that learned member @scylla noted that 3 rejections could well lead to a fatal wounding of a PR application. So, I told someone I know, in the part of the province where my principal residence is located, that I'll likely sell out very soon, and move to my wife's country, where I lived before. I recognize that, with rising interest rates and other factors, the local real estate market is not that robust. For a large oceanfront acreage such I I have, the best time to sell is in spring/summer. There are a limited number of potential purchasers. Properties don't sell so well there in winter. Here'e the full text of the email he sent me:

On selling... I do NOT think that should be action #1. Other things first.
But the way to sell quickly is advertise 'owner willing to finance'. Get X down and finance at 3% for three years. Or five.
Can you send me a copy of the rejection letter?

Strange, isn't it? The first thing he thought of, to facilitate a sale, was that I should consider carrying some paper on the property for 3 to 5 years. You and @canuck78 are simply displaying your ignorance and lack of real estate experience. Please refrain from covering that up by calling me a liar.

Thank you for bringing up vendor backing mortgage. I didn't know an average seller can become a lender for their own property transaction until now. I googled and read this article for a more understanding:

https://www.theglobeandmail.com/real-estate/toronto/article-rising-rates-spur-renewed-interest-in-vendor-take-back-mortgages/

Btw, what are the risk in doing so? What if the buyer refuse to make the mortgage payments to the original seller?

 

[moscatojuices]

You bought a property

Not a lie at all. Call me a liar when you have proof. Why would I bother to lie? To what end?

In the years that I practiced law in Vancouver, I saw this done multiple times, not just me. Ask any Vancouver real estate lawyer. When I bought, the market was softening. The vendor was motivated to sell. With money borrowed from family and saved Ontario student loan money, I came up with the approx. 20% down payment. The vendor financed by way of agreement for sale (essentially a vendor take back mortgage) at 11% for 5 years. The house was a triplex in Kitsilano. I lived on the main floor and rented the upstairs and the basement.

Tell ya' what smartass. Because I know I can prove it, put your money where your mouth is. I'll bet you $10,000 I can prove my words. No, I do not have my own records going back that far, but the proof will be at the Vancouver Land Title Office. It will show me as purchaser by way of A/S for that specific Kits property, it will show the name of the vendor (her initials were KS, all I'll say here now, and the property was on West 7th Ave., west of Blenheim St.) and that the A/S was paid out in full when I sold 3 years after purchase. As someone who practised some real property law in Vancouver, I know what the records will show. You can name a Vancouver law firm. We both pay $10,000 into that firm's trust account. If I am right, the law firm pays out $20,000 to me, less the firm's reasonable fees and disbursements as stakeholder. If you are right, you get the $20,000. If you want to wager more, I'll agree, up to $100,000. My thoughts on the exact mechanics of this are a bit inchoate at the moment, as I am dashing off a quick response to your most offensive calumny. But the details can easily be worked out.

As an indicator of how wrong you are, I recently commented on this forum that, having received 3 TRV rejections in a row, my wife's PR application would likely fail. Even that learned member @scylla noted that 3 rejections could well lead to a fatal wounding of a PR application. So, I told someone I know, in the part of the province where my principal residence is located, that I'll likely sell out very soon, and move to my wife's country, where I lived before. I recognize that, with rising interest rates and other factors, the local real estate market is not that robust. For a large oceanfront acreage such I I have, the best time to sell is in spring/summer. There are a limited number of potential purchasers. Properties don't sell so well there in winter. Here'e the full text of the email he sent me:

On selling... I do NOT think that should be action #1. Other things first.
But the way to sell quickly is advertise 'owner willing to finance'. Get X down and finance at 3% for three years. Or five.
Can you send me a copy of the rejection letter?

Strange, isn't it? The first thing he thought of, to facilitate a sale, was that I should consider carrying some paper on the property for 3 to 5 years. You and @canuck78 are simply displaying your ignorance and lack of real estate experience. Please refrain from covering that up by calling me a liar.

You bought a property in Kitsilano, one of the most prestigious Vancouver suburbs, as a student with no credit history? Look I'll openly contract myself and say that "this is Canada, and anything is possible" so well done to you.