Attn: dimple2001

V

Vjy

Registered Users (C)
Attn: dimple2001

quote:
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Originally posted by dimple2001
The move may be daunting, but certainly not extremely stressful depending on how far the move is.

Your credit history will be useful, though your credit cards may not if you want a canadian address on your billing statements. I moved to Canada from the US and bought a total of three real estate properties in about a year in Canada using the US credit history. I maintain a PO box in the US and I have all my US credit cards directed there and still use the US cards in Canada.

Also, I called a credit card company that also issues cards in Canada (ex: Citibank, MBNA, etc) and applied for a credit card by explaining that I have the same card under the US account. They approved me in minutes with a substantial credit limit.

For cell plans, try www.bell.ca, www.sprint.ca or www.rogers.ca.

I can provide more info if your move is to Windsor, ON. Good luck.
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Hi Dimple2001,

Can you give us some input in regards to home/real estate buying in Canada.

I read somewhere, even if you are not employed yet and if you are willing to pay down around 32 percent( or more) of the property value, you can buy the house.

And also I heard there is an easy way of buying an apartment/condo and you can get transfer of the seller's
mortgage.

Do you happen to know any such info.

And also if you don't mind can you please share us your
property buying experience.

And how different is it from US.

Thanks a lot !

Vijay
 
For the most part, buying property in Canada is similar to the one in the US.

As I am assuming that you will be a first time buyer in Canada, I would recommend you contacting major realtors such as Century21, Remax, etc. I had better experience starting the process with Century 21 compared to local realtors.

Basically, the process involves searching for the property, making an offer of purchase to the seller, obtaining the mortgage, obtaining home owners insurance, purchase the property, and move in. This process is same as that of in US.

The differences:

1. Mortgages are amortized for 25 years and the loan is given for 5 years fixed interest rate. In the US, the most common option is 30 year fixed rate. The advantage of the Canadian system is that the interest rate is typically lower than a 30 year fixed. The disadvantage is that its fixed for only 5 years. You have to refinance after 5 years or continue at the rate the mortgage company provides you.

2. The purchases are closed with the help of a real estate lawyer. There are no title companies and such in Canada (at least none in Windsor). In the US, lawyers are optional and you go through a title company.

3. From my experience, mortgage agreements are a whole lot easier to read and understand the numbers. It is a confusing document in the US.

4. If you are buying properties that are deemed rental properties (duplex, triplex, etc), you will have to foot in 25% cash downpayment. Or else, you may be able to get away with only 5 to 10% down.

5. If you are married, mortgages in Ontario require both you and your spouse sign the papers irrespective of whose credit histories they have checked. In other words, joint consent is a must. In the US (in MI), thats not the case, you can own a property in any one's name.

6. For older properties, you should insist on "Retrofit Certificate" from the seller. This certificate is issued by the local fire department certifying that the house is upto the latest building codes. If you do not obtain one or if the seller is unable to provide one, you may end up spending huge amounts of money either to have an inspection and obtain a certificate or to update the house to the current codes. I have not heard of this in MI.

7. It is common in Windsor to have a rented water heater. You should check if the heater is rented or owned. If it is rented, you will pay a monthly rent to the utility company which may vary from $6 to $17.

8. Mortgage brokers are common in Windsor. You can use them for the first time since they help you out and take care of most of the headaches. You can also apply directly to banks such as TD, CIBC, Scotia Bank, etc. I used CIBC and did everything on the mortgage over the phone and fax.

I am not sure how the finace companies would treat mortgage applications if you are unemployed. When I applied for a mortgage, they wanted all sorts of confirmation and documents of my employment. I believe, they even called up my HR manager to verify my employment.

There is something called as Seller Financed Loans. I am not sure about the details. However, it all depends on the seller. The commission for the realtor is 6%, same as in US, paid by the seller.

If your plans are to move to Windsor, I can provide more info on locations and realtor.

Hope this helps.
 
Dimple2001,

Thanks a lot for the information.

Definitely, I would seek info from you, once am ready to move
may be in few months.

By the way, if understand correctly rental properties are
the once which the owner can sub-let portion(s) to others.

Honestly, the reason why am curious about buying a home
even without a job at hand is the uncertainity of finding one.

And God knows how long it takes to find one.

I was coming from bottom up, say settledown at a place which
you like or prefer and find a Job one you could find and able to survive then think/plan about your dream job.

Bottomline, a pennysaved a pennymade

Cheers,
Vijay :)
 
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