Finances and Buying Property

Make sure you understand the costs involved in buying a house or apartment and how to go about arranging finance...

As a Canadian resident, financing is typically available at 75 percent of the purchase price, for a primary residence over a 25-year term. For a non-resident, the ratio is generally 65 percent mortgage and 35 percent as a down payment. Qualifying for the mortgage is probably the same as in other countries - interviews via phone, fax, email to gather personal information which includes assets/liabilities, employment and/or income information. Each borrower's application will be considered on a case-by-case basis. Your realtor will be able to advise you on suitable mortgage brokers.

The mortgage approval may take approximately 24 to 48 hours, after the application and supporting documentation has been submitted to the lender. The documentation generally required is income verification, tax returns, credit bureau or bank report (letter from borrower's bank stating that all accounts are in good standing to date), down payment confirmation from the bank, copy of two pieces of identification and real estate appraisal. Foreign banks cannot register mortgages in Canada, so any mortgage would have to be raised via a Canadian mortgage broker.

The borrower will require the services of a Canadian lawyer or notary public to prepare the mortgage documents and registration at the Land Titles office. Documents can be couriered outside Canada for signing - this will need to be arranged with the lawyer and lender well in advance of the completion date.

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