Buying House in Canada while Staying in USA

[aksdeo]

Hello,

I landed in Canada on Oct 17, 2020 and have received my PR card. I am continuing to stay in USA and as my visa in USA is valid till early 2023, I have an option to stay in USA till then and move to Canada in early 2023.

I was wondering if it is possible to buy a house in Canada NOW (2021 for example) ; stay in USA till 2023 and then move to Canada. I assume it might not be straightforward but would like to see if there is such possibility.

Thanks.

 

[steaky]

Hello,

I landed in Canada on Oct 17, 2020 and have received my PR card. I am continuing to stay in USA and as my visa in USA is valid till early 2023, I have an option to stay in USA till then and move to Canada in early 2023.

I was wondering if it is possible to buy a house in Canada NOW (2021 for example) ; stay in USA till 2023 and then move to Canada. I assume it might not be straightforward but would like to see if there is such possibility.

Thanks.

Sure you can buy house now. If you buy house in BC, you might need to declare the status each year. If you left house unoccupied, you might need to pay speculation tax. That's something to consider.

 

[aksdeo]

S


Sure you can buy house now. If you buy house in BC, you would need to declare the status each year. If you left house unoccupied, you might need to pay speculation tax. That's something to consider.

Thanks for the quick response buddy. Its great to know that its not completely ridiculous thought/idea.
I do not intend to buy it in BC so I guess I should be OK.
I am not sure how credit will work though as I have heard it takes time to build credit. I do have SIN issued but is there any possibility that I will be able to get mortgage and all that sorted while not having a job and typical 'credit history' within Canada?

 

[steaky]

Thanks for the quick response buddy. Its great to know that its not completely ridiculous thought/idea.
I do not intend to buy it in BC so I guess I should be OK.
I am not sure how credit will work though as I have heard it takes time to build credit. I do have SIN issued but is there any possibility that I will be able to get mortgage and all that sorted while not having a job and typical 'credit history' within Canada?

You would need to talk to a mortgage broker whether you qualify for a mortgage.

 

[aksdeo]

You would need to talk to a mortgage broker whether you qualify for a mortgage.

Got you. I guess I will start from there. Thanks.

 

[red_rom]

Hello,

I landed in Canada on Oct 17, 2020 and have received my PR card. I am continuing to stay in USA and as my visa in USA is valid till early 2023, I have an option to stay in USA till then and move to Canada in early 2023.

I was wondering if it is possible to buy a house in Canada NOW (2021 for example) ; stay in USA till 2023 and then move to Canada. I assume it might not be straightforward but would like to see if there is such possibility.

Thanks.

Yes, you can purchase a property, since your PR status is still valid, even though you are working in the US. There are few points to consider (assuming you are the first time home buyer):

1. Your US credit score might be considered differently by different lenders (Beware: This won't directly transfer to Canadian Real Estate transactions)
2. Few things that might play a significant role are - the kind of job type (fulltime, contract), down payment, first time home buyer or not, your GDS/TDS scores, etc.
3. For your next point, purchasing in 2021 and moving in 2023, I see two options
   • First, you purchase and rent it out, in that case since it is not your principal residence / matrimonial home, you may have to pay Capital Gains Tax.
   • Second, I would recommend, buy a builder home that has occupancy in 2023 and pay your initial deposit in few months and come and occupy in 2022/2023. In this case, you would be eligible for a First Time home Buyer's Tax refund as well. Besides, if your builder gives you the Assignment Option, you can even sell it before you occupy and can be a good investment as well.

PM me if you need further help.

 

[aksdeo]

Yes, you can purchase a property, since your PR status is still valid, even though you are working in the US. There are few points to consider (assuming you are the first time home buyer):

1. Your US credit score might be considered differently by different lenders (Beware: This won't directly transfer to Canadian Real Estate transactions)
2. Few things that might play a significant role are - the kind of job type (fulltime, contract), down payment, first time home buyer or not, your GDS/TDS scores, etc.
3. For your next point, purchasing in 2021 and moving in 2023, I see two options
   • First, you purchase and rent it out, in that case since it is not your principal residence / matrimonial home, you may have to pay Capital Gains Tax.
   • Second, I would recommend, buy a builder home that has occupancy in 2023 and pay your initial deposit in few months and come and occupy in 2022/2023. In this case, you would be eligible for a First Time home Buyer's Tax refund as well. Besides, if your builder gives you the Assignment Option, you can even sell it before you occupy and can be a good investment as well.

PM me if you need further help.

Thank you very much for the detailed response and explaining my options. I thought my US credit score will not matter at all but sounds like it can be used in some cases.
When you mention kind of job will matter, are you referring to my job in US or that applies to someone working in Canada?

 

[red_rom]

Thank you very much for the detailed response and explaining my options. I thought my US credit score will not matter at all but sounds like it can be used in some cases.
When you mention kind of job will matter, are you referring to my job in US or that applies to someone working in Canada?

I am referring in general for the nature of your job, Canadian lenders (especially prime lenders) look at contract work in a different way. I have seen people on contract, even with a $150-200K annual gross income not getting approved for the mortgage. But, at the same time, I have also seen people on contract with much lesser house hold income get approvals.

There are multiple things to consider in parallel, such as how long you were on contract etc., do you have at least two tax returns on this mode of income etc. It is just that when you mention you are not a full time employee to a lender, they put a laser focus on you.

 

[aksdeo]

I am referring in general for the nature of your job, Canadian lenders (especially prime lenders) look at contract work in a different way. I have seen people on contract, even with a $150-200K annual gross income not getting approved for the mortgage. But, at the same time, I have also seen people on contract with much lesser house hold income get approvals.

There are multiple things to consider in parallel, such as how long you were on contract etc., do you have at least two tax returns on this mode of income etc. It is just that when you mention you are not a full time employee to a lender, they put a laser focus on you.

Oh I see. Thanks for clarifying. I am in full time role so I guess one less thing to worry for now.
Thanks buddy. This helps a lot. I will reach out to you as I continue to plan.

 

[red_rom]

Oh I see. Thanks for clarifying. I am in full time role so I guess one less thing to worry for now.
Thanks buddy. This helps a lot. I will reach out to you as I continue to plan.

No issues buddy !

 

[a_thorn]

You could actually purchase a property given your situation, however, I'm concerned with the approval rate of your mortgage loan. I've seen some lenders approve borrowers while considering their U.S. credit as long as you could provide proof that you can pay off your debt through your sources of income. Although, the chances of getting approved through this with traditional financial institutions might be slim.


I suggest you talk to a registered real estate agent, I'm pretty sure some have already encountered clients in the same situation as you. You're better off transacting with one that has had direct experience with this scenario though to make sure that he knows what he's doing.

Good luck!

 

[gurpreet.ts]

Yes it's pretty doable, in case you are looking to buy in the GTA area I can connect you to my real estate agent, he can help you with your needs. DM me and I can share his contact information.

 

[Amardanan]

be careful while saling/buying of a house because you can face violation of the contract when buying a house

 

[foodie69]

be careful while saling/buying of a house because you can face violation of the contract when buying a house

????
Please explain..

 

[Going2Can]

Hello,

I landed in Canada on Oct 17, 2020 and have received my PR card. I am continuing to stay in USA and as my visa in USA is valid till early 2023, I have an option to stay in USA till then and move to Canada in early 2023.

I was wondering if it is possible to buy a house in Canada NOW (2021 for example) ; stay in USA till 2023 and then move to Canada. I assume it might not be straightforward but would like to see if there is such possibility.

Thanks.

Where you able to make any lead on this?
I am also in the similar situation looking to buy, but not sure where to start.

Thanks