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MovingToOntario
Nov 8th, 2009, 10:23 AM
Here's a quick question, before I potentially embarrass myself walking into a bank.

I'm currently in Canada on a student's visa. I have a permanent resident's visa that will be issued hopefully by March.

I'm currently working on a 6 month contract with the university. I'll earn about $20k before tax during these 6 months. I only started working this past week. The contract could get extended at the end of the 6 months.

My brother and his wife want to leave the city and go back west, as soon as possible. It's been suggested that I buy their house, which they bought in 2008, for the purchase price of $110k. The property is probably worth $150k after all the work they've done to it.

I have very little money for a deposit at this time. I have a canadian bank account. I haven't yet applied for a canadian credit card, though that's on my to-do list for this upcoming week.

How would I go about getting a mortgage to purchase their house, assuming it's even possible on my current visa? What about if I were to wait for my permanent resident's visa?

Any ideas welcome. Thanks!
AllWheelDrift
Nov 8th, 2009, 11:17 AM
So you don't have much in terms of a downpayment, zero Canadian credit history, very limited job history that is short term contract work to boot, and given the fact that you don't have PR yet, probably not much in the way of significant ties to Canada. You're asking how do you get a mortgage? I think the answer probably is you don't, or at least not from conventional sources. Maybe you can find someone that would lend you the money at a high interest rate.
MovingToOntario
Nov 8th, 2009, 11:27 AM
You're right, that may end up being the way.

How long before I can start to look at conventional lendors?
sslinn
Nov 8th, 2009, 12:50 PM
This should give you a better idea! (http://www.genworth.ca/content/genworth/ca/en/products/product_overviews/new_to_canada.html) Contract work will hamper you.
KeenInvestor
Nov 8th, 2009, 01:59 PM
How about a guarantor?
sslinn
Nov 8th, 2009, 08:53 PM
How about a guarantor?

With a strong guarantor or co-signer it may fly.
MovingToOntario
Nov 8th, 2009, 10:05 PM
With a strong guarantor or co-signer it may fly.

Does someone have to stay co-signed for the whole duration of the mortgage or can you say take them off after 6 months if you prove you're a good risk?
zombie999
Nov 8th, 2009, 10:14 PM
Does someone have to stay co-signed for the whole duration of the mortgage or can you say take them off after 6 months if you prove you're a good risk?

You can take them off any time but in 6 months you will not qualify based on your current situation.
MovingToOntario
Nov 8th, 2009, 10:42 PM
You can take them off any time but in 6 months you will not qualify based on your current situation.

Good to know.

Think I could get a guarantor before I get the permanent resident's visa or best to wait until after. I have a friend who'll probably be able to help me.
zombie999
Nov 8th, 2009, 10:52 PM
Good to know.

Think I could get a guarantor before I get the permanent resident's visa or best to wait until after. I have a friend who'll probably be able to help me.

Your best bet is to contact a mortgage specialist to discuss your situation. If a guarantor qualifies, you can probably do it now.

In the meantime, start building your canadian credit history by getting a credit card.