About Susan Gozali Expertise I can help you in questions regarding mortgage/financing in Canada. I'a mortgage expert, having access to over 90 lenders, including banks, credit unions, trust companies, and even private lenders. I handle both residential and commercial properties. Please do not hesitate to ask me if you have any questions regarding those matters.
Experience I have access to the most creative alternative lending products out there, meaning unlike your bankers, I deal with clients with less than perfect credit rating. In addition, I also deal with self-employed borrowes and foreign investors. My latest project is to help renters achieving their dreams of becoming homeowners.
Education/Credentials Licensed Mortgage Broker of BC
Expert: Susan Gozali Date: 1/27/2008 Subject: What is available to foreigners?
Question QUESTION: Hi
I am a UK national looking at developing / investing in property in BC, and was wondering how much leverage Canadian banks would give me. Here I can get up to 90%, however I am not sure that would be the case for me in Canada. Any help appreciated.
ANSWER: Hi there,
Happy Holidays to you and to your family!
For non-residents, lenders have basic guideline of lending 65% loan-to-value. However, they do make exceptions once in a while, especially for UK or US residents, they would go up to 80%. If you're a resident of Canada, you can even get 100% financing here.
What kind of property are you looking to invest in? Please let me know if you have any other questions.
Take care,
Susan Gozali
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QUESTION: Hi Susan
Seasons Greetings to you and yours!!
Thanks for your answer, makes things clearer. To answer your question, at this stage I am researching opportunities, and so far looking at buy-to let/rent condos in Vancouver, or renovating an existing house or building from scratch on a plot.
It really depends on what is available at the time, what finance I can raise, what advanced techniques that work here (I buy property in the UK below market value, usually around 70-80%, which allows me to circumvent the need for a deposit) would work over there etc. For example, here I find a vendor willing to accept 80%, use a short-term bridge to purchase, then immediately remortgage at 80% market value. Would such a technique work in Canada, assuming I could get 80%?
I am open to any opportunity that allows us to live in Canada, life is too short to put up with the weather here!!
Look forward to hearing from you.
Kind regards
Stuart
ANSWER: Hi Stuart,
Sincere apologies for the delay in getting back to you. It seems that the notification email never arrived in my mailbox. Again, truly sorry...
Why would you require short term financing to purchase if you can get financing from institutional lender? If you can't, then you may have to go that route. If you can, why would you spend higher rate, extra fees...
When are you planning to move here?
Take care,
Susan
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QUESTION: Hi Susan
Thanks for your reply, the reason I use short term finance is that here mortgages are only given for up to 90% loan to purchase price, whereas a remortgage will give you 90% loan to VALUE. So if I am buying at 80% of true value, I need a remortgage of 80% of the true value, not the purchase price. Also a remortgage is not available until you own the prop, so cash is used to buy then I have the remortage kick in a few hours after completion, thereby giving me a property without needing a large deposit.
Eg. I found a house worth £100000 and the vendor is willing to accept £80k, which could be for a variey of reasons, such as they want a quick sale, or emigrating, etc., I purchase in cash for £80k, then immediately remortgage for say £85k, giving me £5000 (less costs) cash, plus the prop.
Do you think / are there similar strategies that would work in Canada?
Answer Hi Stuart,
The same rule applies here in Canada. When you purchase a property, lender would lend based on the lesser of the purchase price and the appraised value. When you refinance, it would be based on the value. However, I'm not sure if you can actually refinance your property few hours after you take possession, because to get approved, you would need proof of fire insurance coverage, title search, etc. The process can't be done in few hours.
Where did you get the cash for the purchase? If you finance the purchase as well, some lenders would want to wait for 6 months or 12 months to allow you to refinance.
