Recently James, a non-resident from Singapore purchased a property in Toronto. We completed the deal from start to finish in 10 days, which was highly stressful for both the borrower, realtor and mortgage broker – yours truly.
Everyday, I was faced with lender delays, appraisal delays’ and many phone calls back and forth to verify details. It was not clear that we would be able to close and both James and the seller could not extend closing, which led to further stress. James was leaving back to Singapore on July 29th and the sellers were closing on another property on July 30th. Our closing was set for July 27th. Deadlines all around were tight. The only positive was that the realtor already had the status certificate reviewed by the lawyer, before the purchase agreement was signed, which saved us time in the process, enabling me to send that in with the paperwork to the lender.
I realized that it was the lack of explanation on my part that facilitated this occurrence and thought that this example would be a great learning tool for your purchases in Canada.
As a mortgage broker the worst question to get asked is “what’s the best rate you can get me?” When you shop for rate alone, you are unfortunately missing the bigger picture!
Let’s look at why this makes a difference when purchasing property in Canada and the US.
When you buy in Canada rate might be a good focus for you, because there are so many lenders competing on rate alone and with the high property prices rate is the main focus, because it indicates in many cases whether we can cash flow or not.
As the summer approaches, I start to get inquiries from Canadian non-resident or expat clients, inquiring about how to purchase properties in Canada.
Many of these clients are Canadian citizens but they are working and living abroad in countries, such as, Dubai, Singapore, Abu Dhabi and England just to name a few countries. Canada, luckily enough is very favourable to foreign investment, and while these clients are not considered foreigners, once they live outside the country for a number of years, and no longer pay taxes at home, they are not considered citizens and thus do not enjoy the same financing benefits for residents of Canada.
Thus, I thought a good primer would be good. Let’s look at a recent example.
This is not my typical mortgage article but was important for me to write so I hope you like it!
As a self-employed entrepreneur and solo mortgage broker, it can get lonely and difficult in this business and having only been doing this for 3.5 years, I have had my days when I wanted to quit! I am sure I am not alone.
Last year was the best year I ever had and I was riding that wave until the new mortgage rules arrived in November of 2016. Where we as brokers were restricted by the new rules the government had initiated, I was hearing time and time again how the banks were not playing by the same rules.