If you’re thinking of buying a property in Canada, now is the perfect time. Rates are at an all-time low and we have plenty of inventory..
It’s cheap money .. I have a client got approved for 2.89 % the other day .. Wow that’s amazing .. really cheap money
With all that being said, for newcomers to Canada it is little bit different, I met with my mortgage specialist the other day to help out a new client to buy his first home in Canada, he came from Dubai with his family and the plan was to buy a house for his family and leave his wife an kids here and he continues his full time job in Dubai then catch the family later in few months ..
The mortgage specialist offered him some options and I would like to share these options with you today:
35% down payment from the total value of the property you are planning to buy (example: house value 300K means your down payment will be 105K the interest rate will be in this case the prime rate of 3.00% , sometimes they can do little better 2.9 % depending on the lender and your monthly income & your bank account statements.
This option applies to nonresident of Canada also, if any investor was interested in buying a property in Canada he can put 35% of the value down payment and mortgage the rest.
20% down payment (our example of 300K house, the down payment would be only 60K of the 300K value) contingent on providing proof that you are currently working outside Canada, so the bank will need the following documents:
~Recent Job Letter signed and on company letter head stating position, tenure, salary, etc…
~3 months foreign bank statements showing payments transferred to your account from the employer
~Wire of funds leaving foreign account, and directed to Canadian account or bank statement of the Canadian bank account showing the 20$ down payment.
In this case the mortgage will be arranged as (The husband is working overseas and the wife will be living in this house or vice versa until one of them can find job in Canada then the spouse will move to Canada or maybe continue working outside Canada.
The interest rate is probably 1% higher with option no.2 because the bank is taking the risk of lending you with low down payment, however, you can switch it to the lower interest rate after one year because during the first year you will be settled and built your credit history and each lender will be glad to do business with you and offer you best options to earn your business.
Note: there is a 100% financing option also (0 down payment) when the client pays a posted rate for the mortgage – right now it's around % 4.80 , then 5% cash back is given to the lawyer at the time of the closing. This cash back is applied by the lawyer for the down payment. Client has to come up with 1.5% of the purchase price for the closing costs and must show a history of savings for this program.
With any of the above options, I'm here to help you, whatever make you comfortable and gets you into your dream home.
As a professional Real Estate sales person, I will connect you with my mortgage specialist and she can explain to you in details bout your financing options and find you the suitable program within your monthly payment range and budget.
Let me know if you have any questions ..
Nazar Hameed ( Ajeely )
Bsc. Adv. Dip. , ( Property Management ) - www.NazarAjeely.com
Real Estate Broker - Remax Real Estate Centre Inc. Brokerage
Managing Director – After Landing Canada www.AfterLanding.ca
100 City Centre Dr # 1-702 , Mississauga , ON. Canada, L5B2C9
Cell: +1 647 975 7788
Office: +1 905 272 5000
Fax: +1 905 272 5088
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