Nanaimo mortgages, home loans, brokers, mortgage lenders, equity loans.

Non-Resident Information

Generally, financial institutions outside Canada are unable to lend money on Canadian properties. Canadian institutions however are willing to finance non-residents with minimum down payments of 5% of the purchase price. Canadian financial institutions differ from other international lenders. Typically mortgages in Canada are term mortgages or alternatively balloon mortgages wherein the mortgage is set for a term and then must be refinanced/renewed at the end of the term. A Canadian mortgage may be amortized anywhere from 5 to 35 years.

Down Payment: The minimum down payment required is 5% of the purchase price or appraised value; whichever is lower and depending on the property. If purchasing raw land then the down payment would be 25% or greater.

Term: This is the length of time for which the interest rate is set (this also applies to variable rate mortgages). Terms are available from 1 to 25 years. At the end of the term the balance may be renewed for a further term of your choice, at the then current interest rate. This process continues until the mortgage is paid in full.

During the term, the mortgages generally allow for prepayment on the annual anniversary date of 10-20% of the principal plus an additional 10-25% increase of the principal and interest payment monthly. Other than this the mortgages are closed and will incur a penalty if prepaid. There is no penalty if you pay part or the entire mortgage amount outstanding at the end the term.

If you sell your property during the term, you will incur penalty interest unless you transfer the mortgage to another property you purchase or own, or you have purchaser assume the mortgage.

Currency: The transaction must be completed in Canadian funds.

Banking: For convenience in making payments, a Canadian Bank account is essential and can be either with the mortgage institution or another Banking facility in Canada.


Income Tax Implications: While not within our area of expertise we can readily put you in touch with the appropriate professional advisors or we ask that you seek advice from your professional in your country of origin.

Standards and Guidelines

1. Borrower immigrated or relocated to Canada within the last 24 months.

2. Three months minimum full time employment in Canada.

3. Minimum employment requirement is waived for borrower being transferred under a corporate relocation

program.

4. Borrower must have a valid work visa or have a landed immigrant status.

5. Property must be owner occupied.

6. Principal residence only.

7. Existing or new construction.

8. Purchase and purchase plus improvements.

9. Maximum of two units.

10. All debts held outside the country must be included in the total debt servicing ratio. Rental income earned

outside Canada is to be excluded from the GDS/TDS calculation.

11. GDS/TDS normal guidelines and standards apply (32% (including heat) / 40%)

12. Standard portability rules apply.

13. Not available for following loan types:

• Progress Advance

• Vacation & Secondary Property

• Credit Assist

• Second Mortgages

• HELOC

• Refinance

14. Not available for Diplomats.

For a complete guide to all of the available new immigrant programs please either email or call and we will forward you the latest information with no obligation.


Office: 250 754 7775 Toll Free Office: 1 800 758 3077 
Email: joetomkins@invis.ca