LoanBox is the perfect choice for BC Mortgages for Non-Residents

Vancouver’s beautiful geography, the opportunities that its proximity to the Pacific Rim present and it’s laid back culture have always attracted people from abroad to it’s real estate market as buyers. The recent global exposure that all of those things received during the Olympics has driven an uncharacteristically large number of people to the city by the sea and, as a result, the real estate market has become increasingly streamlined. BC Mortgages for Non-Residents are making it easier than ever for non-residents to become involved in the housing market.

Mortgage Eligibility

Non-residents of British Columbia are subject to some additional scrutiny when purchasing here, but the hurdles are very much achievable. The simplest way to enter is with a large down payment. Buyers who put down 35% or more are eligible to receive some of the banks’ top rates. The larger down payment is required because banks see non-residents as being a higher risk for them given that the buyers are not as locally accountable as a resident is.

Down Payment Alternative

Few people can put a down payment that exceeds a third of the total purchase price on a property, fortunately there are alternatives. The other way that banks compensate for higher risk is with slightly higher interest rates. Non-residents with less than 35% down payments may be eligible to receive a mortgage that is priced at an interest rate between 1 and 3% above the typical rates. Given the current rates in Canada relative to many other countries, a rate that is 1-3% higher than typical may still be very cheap relative to the buyers country of residence. Meaning BC Mortgages for Non-Residents are great value too!

Investment Tax Implications

Non residents who are renting a British Columbia property out or otherwise using it as an income generator may be subject to a 25% tax to the Canada Customs and Revenue Agency (CCRA). The amount of that tax can be reduced by filling out an NR6 return – the details of which are best handled by an experienced mortgage professional. One major consideration is that expenses may be accounted for in the first two years of ownership meaning that the amount of income to account for may decrease dramatically.

What do I Need to Apply?

Before approaching a financial institution for approval of a mortgage as described above, it is best to come prepared with the documents that they will be asking for. Specifically, banks will require that the house has been appraised and the documents detailing the results must be prepared by a qualified appraiser as approved by the bank. For a list of approved appraisers, contact your financial institution. Next, the bank will need to see proof that the down payment amount is available to be paid. Finally, in order to verify eligibility, the applicant will be required to produce either a credit bureau report or a reference letter from the bank in the country of residence.

All of the above steps and more have been performed by local professionals thousands of times over the past few years. In order to speak with an experienced mortgage broker who can make the process as easy as possible and protect you from potential pitfalls, click:

Contact Us