Newcomer PR mortgage questions

[iSaidGoodDay]

Hi, is it a crazy idea to think about buying a house within 3 months of landing without credit history in the country. I can afford down payment of 50% and want to borrow like $200k. I think with 200k mortgage, monthly repayment would be same or less as monthly rental which makes me want to think why not. As a newcomer, I won't have a job also, would that be possible to get a mortgage with my situation?

The minimum criteria that I was able to see was:
1. Credit transfer through a bank that has your credit history in your home country. One of my bank has a branch in Canada and my Indian bank's entity is sharing credit history with the Canadian entity.
2. A job offer that states that you'll join the Canadian company from X date and that your comp will be $$$.

These two makes you eligible for a pre-approval. The only thing you need to close a mortgage would be to submit 2-3 paystubs in this case. You can get 2-3 paystubs after 1.5 months in Canada as an employee(biweekly payroll). The bank will not give you the final mortgage without these paystubs though.

There are mortgage agents who should help you out post 35% too, and they seemed very willing to me when I talked to them back in March too. You can try that route if a bank isn't an option. But, even they will ask you for a job.

A job + >35% deposit seemed to be the best spot.

 

[moscatojuices]

Hi, is it a crazy idea to think about buying a house within 3 months of landing without credit history in the country. I can afford down payment of 50% and want to borrow like $200k. I think with 200k mortgage, monthly repayment would be same or less as monthly rental which makes me want to think why not. As a newcomer, I won't have a job also, would that be possible to get a mortgage with my situation?

Does a bank not like your money???

Go talk to the bank,

 

[aahan3]

Okay, I think I'm in the market for a house, but I am unsure of how to proceed further. Searched for a few threads and couldn't find anyone with my situation here.

About my situation:
1. Can easily do 35% downpayment.
2. Employed as a contractor with a Canadian company - will move to employment status once I'm in Canada.
3. The mortgage I'd need is between $180k-270k (min to max). The monthly mortgage amount is less than 10% of what I usually make in a month.
4. I haven't landed in Canada yet.

What I'm exploring:
1. Can I open an online bank account without landing in Canada, receive income in it, build 3 months of credit history and get that mortgage? I can additionally get my current Canadian company to show that I was being paid from last 2 years as well. I'm looking at a program like this: https://www.rbcroyalbank.com/mortgages/essential-mortgage-information-for-newcomers.html
2. If #1 is impossible, how long post landing would it take to be able to qualify for that mortgage range? I'll maintain <30% credit card limit usage and pay on time, will get a car on finance to help with credit score.

Am I thinking way too forward in this case? I am planning to talk to a few banks this week/next to get a better idea. But anyone who went through the same if you could share your perspective, it would be helpful.

Okay, I think I'm in the market for a house, but I am unsure of how to proceed further. Searched for a few threads and couldn't find anyone with my situation here.

About my situation:
1. Can easily do 35% downpayment.
2. Employed as a contractor with a Canadian company - will move to employment status once I'm in Canada.
3. The mortgage I'd need is between $180k-270k (min to max). The monthly mortgage amount is less than 10% of what I usually make in a month.
4. I haven't landed in Canada yet.

What I'm exploring:
1. Can I open an online bank account without landing in Canada, receive income in it, build 3 months of credit history and get that mortgage? I can additionally get my current Canadian company to show that I was being paid from last 2 years as well. I'm looking at a program like this: https://www.rbcroyalbank.com/mortgages/essential-mortgage-information-for-newcomers.html
2. If #1 is impossible, how long post landing would it take to be able to qualify for that mortgage range? I'll maintain <30% credit card limit usage and pay on time, will get a car on finance to help with credit score.

Am I thinking way too forward in this case? I am planning to talk to a few banks this week/next to get a better idea. But anyone who went through the same if you could share your perspective, it would be helpful.

Hi,
Congrats that you are planning to buy a house in Canada, but while looking for their first mortgage, not only check just the rate but also check the features of each mortgage plan offered by the bank or mortgage broker. Compare each of them before you sign the commitment letter.
Don't think I am selling any plan here, I am just selling my knowledge as I am a real estate agent.
so I know what majority of people check.

 

[iSaidGoodDay]

Hi,
Congrats that you are planning to buy a house in Canada, but while looking for their first mortgage, not only check just the rate but also check the features of each mortgage plan offered by the bank or mortgage broker. Compare each of them before you sign the commitment letter.
Don't think I am selling any plan here, I am just selling my knowledge as I am a real estate agent.
so I know what majority of people check.

I'm not using a mortgage broker. What features are you talking about though? will help others if you post them here.

 

[steaky]

Hi,
Congrats that you are planning to buy a house in Canada, but while looking for their first mortgage, not only check just the rate but also check the features of each mortgage plan offered by the bank or mortgage broker. Compare each of them before you sign the commitment letter.
Don't think I am selling any plan here, I am just selling my knowledge as I am a real estate agent.
so I know what majority of people check.

Oh, the majority of people likes to pass around their confidential information (financial and tax papers).

 

[Rach WLT]

The minimum criteria that I was able to see was:
1. Credit transfer through a bank that has your credit history in your home country. One of my bank has a branch in Canada and my Indian bank's entity is sharing credit history with the Canadian entity.
2. A job offer that states that you'll join the Canadian company from X date and that your comp will be $$$.

These two makes you eligible for a pre-approval. The only thing you need to close a mortgage would be to submit 2-3 paystubs in this case. You can get 2-3 paystubs after 1.5 months in Canada as an employee(biweekly payroll). The bank will not give you the final mortgage without these paystubs though.

There are mortgage agents who should help you out post 35% too, and they seemed very willing to me when I talked to them back in March too. You can try that route if a bank isn't an option. But, even they will ask you for a job.

A job + >35% deposit seemed to be the best spot.

Thank you for the valuable insights. Could you please share also how you look for houses or any real estate agent to recommend?

Thanks again.

 

[steaky]

Thank you for the valuable insights. Could you please share also how you look for houses or any real estate agent to recommend?

Thanks again.

I also look at brand new homes such as:

https://thecityoflougheed.com/homes/

Which is now selling and you can expect to move in July. Just go the sales office and contact the developer.

 

[iSaidGoodDay]

Thank you for the valuable insights. Could you please share also how you look for houses or any real estate agent to recommend?

Thanks again.

My realtor is a common friend. However, there are realtors who work with new immigrants and you can reach them through their websites.

For looking at houses, some websites that I use:
1. realtor.ca - finding listings
2. Zolo - finding listings
3. HouseSigma - looking at listing price vs how much a house was actually sold for

There are a few more websites, but I use those mainly.

Now about looking at the house itself, I'd advise spending a lot more time on the type of house you want:
1. Detached, semi-detached, etc.
2. The type of build the house has: bunglow, multi-level, etc.
3. Features of the house itself: size of backyard, attached/detached/parking pad, etc.
4. Age of the house, are they using old windows that aren't good for insulation, roof or interior reno last done, etc.
5. Neighbourhood: quiet vs busy, proximity to work/lake/running trails/..., general safety, etc
6. Lifestyle choices: if you are moving to non-GVA/GTA areas, e.g. would you want Uber eats (or something else) to deliver food at your place? what about gyms, cultural activities, etc?
7. Access to schools, daycare, etc.
8. Condo/strata vs freehold - I've pets, so I'm going with freehold properties. See what works for you here.
9. I'm also using public transit and things like Walmart as a proxy of where not to buy a home. Public transportation brings in problems of their own.
10. You can also look into stuff like past soil pollution, stinky lakes, etc.

 

[Rach WLT]

The minimum criteria that I was able to see was:
1. Credit transfer through a bank that has your credit history in your home country. One of my bank has a branch in Canada and my Indian bank's entity is sharing credit history with the Canadian entity.
2. A job offer that states that you'll join the Canadian company from X date and that your comp will be $$$.

These two makes you eligible for a pre-approval. The only thing you need to close a mortgage would be to submit 2-3 paystubs in this case. You can get 2-3 paystubs after 1.5 months in Canada as an employee(biweekly payroll). The bank will not give you the final mortgage without these paystubs though.

There are mortgage agents who should help you out post 35% too, and they seemed very willing to me when I talked to them back in March too. You can try that route if a bank isn't an option. But, even they will ask you for a job.

A job + >35% deposit seemed to be the best spot.

Hi, do you think if I continue to work for my overseas employer in Canada, can I use that payslip and salary credit to be eligible. I'am in a good relationship with my company and I can ask them to let me work remotely for about 3-6months if I could use that as proof of funds or employement. Or does it has to be a canada empoyer to get a house mortgage?

 

[iSaidGoodDay]

Hi, do you think if I continue to work for my overseas employer in Canada, can I use that payslip and salary credit to be eligible. I'am in a good relationship with my company and I can ask them to let me work remotely for about 3-6months if I could use that as proof of funds or employement. Or does it has to be a canada empoyer to get a house mortgage?

I think most banks would defer a mortgage to you without a Canadian job. They prefer folks with EI benefits: https://www.canada.ca/en/services/benefits/ei.html

Mortgage brokers could still work with you in this case. You should definitely consider talking to 2-3 very early so that you can prepare yourself as well.

 

[steaky]

Hi, do you think if I continue to work for my overseas employer in Canada, can I use that payslip and salary credit to be eligible. I'am in a good relationship with my company and I can ask them to let me work remotely for about 3-6months if I could use that as proof of funds or employement. Or does it has to be a canada empoyer to get a house mortgage?

Why not just get a personal loan in the country you are working and then pay for the Canadian home?

 

[Kaibigan]

Why not just get a personal loan in the country you are working and then pay for the Canadian home?

That might work if the poster can put up sufficient security in that other country. I doubt a bank (or other lender for that matter) abroad will grant an unsecured loan large enough to buy a house in Canada. But, if the post has a very high income and net worth, then maybe a lender there will grant a loan in the 100s of thousands (I assume we are talking quantum in that range) just on a signature. But then, I would not expect someone with that kind of financial clout to be posting here about borrowing for a house.

 

[iSaidGoodDay]

That might work if the poster can put up sufficient security in that other country. I doubt a bank (or other lender for that matter) abroad will grant an unsecured loan large enough to buy a house in Canada. But, if the post has a very high income and net worth, then maybe a lender there will grant a loan in the 100s of thousands (I assume we are talking quantum in that range) just on a signature. But then, I would not expect someone with that kind of financial clout to be posting here about borrowing for a house.

Personal loans often have a very high interest rates in some countries too.

 

[Kaibigan]

Personal loans often have a very high interest rates in some countries too.

And how! Some make Canada's criminal interest rate of 60% under s. 347 of the Criminal Code look like a bargain!

 

[Raptor33]

Hi, do you think if I continue to work for my overseas employer in Canada, can I use that payslip and salary credit to be eligible. I'am in a good relationship with my company and I can ask them to let me work remotely for about 3-6months if I could use that as proof of funds or employement. Or does it has to be a canada empoyer to get a house mortgage?

Whether you can use your payslip and salary credit from your overseas employer to qualify for a mortgage in Canada depends on the lender. Some lenders may be willing to consider this type of income, while others may not. It is important to speak with a lender directly to find out their specific requirements.

Here are some things to keep in mind when considering whether your overseas income is eligible for a mortgage:

• The lender will need to be able to verify your income. This may involve providing them with copies of your pay stubs, tax returns, and other documentation.
• The lender will also need to be comfortable with the currency exchange rate. If the exchange rate fluctuates, it could impact your monthly payments.
• You may need to provide a larger down payment. Lenders may be more hesitant to lend to borrowers who do not have a steady income from a Canadian employer.

If you are considering working remotely for your overseas employer in Canada, it is important to factor in the cost of living. The cost of living in Canada can be significantly higher than in some other countries. You will need to make sure that your income is sufficient to cover your living expenses, as well as your mortgage payments.

It is also important to note that working remotely for an overseas employer may not provide you with the same benefits as working for a Canadian employer. For example, you may not be eligible for Canadian employment insurance or other social benefits.

If you are considering working remotely for an overseas employer in Canada, it is important to weigh the pros and cons carefully. You should also speak with a lender to find out if your overseas income is eligible for a mortgage.