I have 800K USD lying around for investment and I am thinking about real estates in Canada as I am eyeing a move to Canada. I just got the canadian PR and will never get PR in US so this is an easy decision. Questions: 1. How difficult it is to get mortgage with no Canadian credit history but US social? 2. Mortgage interest is not tax deductable, so is cash purchase better than mortgage? 3. Where should I buy Vancouver or Toronto? Current TC: Much higher than max I can get in Canada. Yoe: 9 Expected TC: A friend with similar profile as mine recently maxed at 250K CAD for an Amazon SDE3 offer.
I personally suggest Vancouver if you can live with the rain but that's just one guy's opinion. As for the mortgage, I don't have much advice as I'm a Canadian citizen but I feel as though you might get shitty interest rates with no history here. If that is indeed the case then a cash purchase might be favorable.
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250 is near the bottom of the SDE3 band, even in Canada.
I doubt you would get mortgage in Canada without a history. I know couple of guys who came from US got an issue with getting a car on 1st year. They were asked to put more down. On 2nd year onward no issues.
You can definitely get one, and very easily at that.
If I have 800K cash,I would go to the cities like Ottawa, Montreal where growth is exploding in RE. You will get max out of investment in those two cities. You can get almost two houses in that range in those cities. In Vancouver, Toronto ,you will get one house in that range.
Banks give new permanent residents preferential treatments. You can get a decent rate with no history as long as you have 35% down. BMO in particular loves new PRs.
20% down to avoid CMHC insurance
1. Might be hard to get a mortgage without Canadian credit history; you can ask HSBC if they’d be willing (as they’re more global of a bank plus they have good rates). 2. Mortgage rates are currently low. Plus it depends what you want to buy and where; you have roughly 1.04M Canadian - you can buy two decent condos (2b2b) in downtown Toronto with a ~1M mortgage or you can buy 1 decent 2b2b condo for the ~1M. Or you can buy two decent 1b1b and have a small mortgage (maybe 200k-300k?) 3. Vancouver is better weather. Housing is more driven by rich foreigners. Toronto is cold half the year. “More” job options in Toronto (sort of)
I would choose Toronto
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