Foreign Investors

Are you moving to Vancouver from another country and intending to buy property?

Are you a Canadian resident moving home after working abroad? Are you buying a property to rent or to use when you visit?

The most important factor that local lenders focus on when deciding to lend to an ‘off shore buyer’ is the amount of equity the buyer is willing to invest.
People who are intending to buy in Canada who do not have Canadian income (you haven't filed income tax in Canada) are generally required to put down 35%.

With 35% down there are only 3 conditions necessary to satisfy the bank:
A satisfactory credit reference.

• for US buyers this is a US Credit Bureau report, for all the international buyers this is a letter of reference from a bank in your country.
• An appraisal
  • the lender wants to verify that they are lending an appropriate amount on the property
• Verification of Down Payment
  • the lender wants to see where the money for down payment is coming from and that it is your money and not borrowed.

Often times, people move to Vancouver as part of a job transfer, or already have work lined up for when you get here. In these circumstances it may be possible to purchase with as little as 10% down. GE Capital (one of 2 Mortgage Insurers in Canada) will insure mortgages for non-residents as long as they meet the following criteria:

• Qualified homebuyers who have immigrated to Canada, from another country, or have been transferred to Canada by an employer can qualify for GE mortgage insurance with as little as a 10% down payment.
• The primary applicant must be employed by an established and highly-respected company at a minimum salary of $60,000,
• The primary applicant must have a minimum down payment of 10% from own resources (exclusive of gifts, or grants etc) or 5% from own resources and 5% from a corporate subsidy provided that the subsidy is part of the relocation program and not a loan,
• The primary applicant must be able to demonstrate that the principal residence has been sold or are able to carry both properties (without including rental income as a source of income)
• The primary applicant must have immigrated and/or relocated to Canada within the last 12 months.

For those moving to Canada who may not meet GE Capitals criteria, they may be able to buy with 25% down, provided their income in Canada will qualify for the mortgage required.

One important factor to consider is whether or not there will be a probation period attached to your employment. For a lender to fund a mortgage, all probation periods must be finished.