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BC Mortgage - Non-residents purchasing property or refinancing a mortgage in BC, Canada |
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Areas served: All of British Columbia (BC) including Vancouver, Richmond, Burnaby, Surrey, Abbotsford, Coquitlam, Saanich, Whistler, Squamish, Kelowna, Kamloops, Victoria Prince George, Nanaimo, Maple Ridge, Chilliwack, New Westminster, Port Coquitlam, North Vancouver, etc.
Mortgage
services:
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Note: Mortgage broker's services in BC, Canada are generally free since they are paid by the lender.
Purchases by Non-residents of Vancouver and Whistler properties have become increasingly popular during the past few years. The trend is expected to increase due to the excitement over the Vancouver - Whistler 2010 Winter Olympics.There are many lenders that provide mortgages to non-residents. These lenders will generally finance a maximum of 65% of the purchase price or appraised value, whichever is lower. Some of the documents that lenders may require are as follows:
1) Appraisal by a qualified, bank approved appraiser
2) Proof of down payment
3) Credit bureau or reference letter from your bank in your country of origin
To facilitate making payments on the mortgage, it is a good idea to open a Canadian dollar bank account in Canada.
Down payment
Lenders generally consider mortgages to non-residents as higher risk compared with resident mortgages. The risk is compensated by either having a larger down payment or a higher interest rate. To access the best interest rates, borrowers are typically required to have 35% down payment.
Down payment less than 35%
If you have between 25% - 35%, there are non-traditional lenders that are able to provide financing. Expect the interest rate to be higher than traditional financing (between 1-3%) higher.
Some lenders will allow you to take a 2nd mortgage behind their mortgage. By doing this, you can reduce your downpayment even further. Be sure to consult us before proceeding with this option.
Investment properties in BC
If the property is a rental property, non-resident purchasers must be cognizant of the tax implications. Non-residents are required to pay Canada Customs and Revenue Agency (CCRA) 25% of the gross income from the property. This amount can be reduced by filing a Form NR6 return which sets out the projected income and expenses on the property. In addition, non-residents will also need to file an annual tax return for income on the property. CCRA will allow you to charge expenses incurred during the past 2 years to offset your income.
I strongly suggest that you consult a chartered accountant with knowledge of cross-border taxation. I will be pleased to refer you to a qualified individual.
Work Visa
If you are on a work visa, you may qualify for a low down payment mortgage. If you can provide an international credit bureau showing strong credit, you may qualify to purchase with only 5% downpayment. Otherwise, you'll need 10% downpayment. The minimum time on the job is 3 months on a full time basis (unless you were transferred here under a corporate relocation programme) .
"My job is done when you know your options"
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