Real Estate

Non-residing Canadian looking to buy a home -- what's different?

  • Last Updated:
  • Oct 3rd, 2016 8:15 pm
Sr. Member
User avatar
Feb 12, 2013
837 posts
96 upvotes

Non-residing Canadian looking to buy a home -- what's different?

My sister is a Canadian citizen who's been working in Hong Kong for the past ten years with PR. She's interested in buying a home and applying for a mortgage, but doesn't have much of any Canadian credit history for the past decade, though earns a good income in Hong Kong. She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.

I've been trying to find some resources specifically for non-residing Canadians buying homes in Canada, but most resources are specific to non-residents from other countries. Are there any discrepencies? If anyone has any resources, I'd really appreciate it! Mainly, we're trying to understand mortgage process, capital gains, etc.

Many thanks!
11 replies
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3350 upvotes
Toronto
jesuisdanny wrote: My sister is a Canadian citizen who's been working in Hong Kong for the past ten years with PR. She's interested in buying a home and applying for a mortgage, but doesn't have much of any Canadian credit history for the past decade, though earns a good income in Hong Kong. She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.

I've been trying to find some resources specifically for non-residing Canadians buying homes in Canada, but most resources are specific to non-residents from other countries. Are there any discrepencies? If anyone has any resources, I'd really appreciate it! Mainly, we're trying to understand mortgage process, capital gains, etc.

Many thanks!
Doesn't matter, she's still a non-resident :(

35% down.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Feb 5, 2013
592 posts
109 upvotes
Where does she want to buy? BC's NDP is ahead in the polls and are proposing a 2% yearly non-resident property tax next year.
Banned
User avatar
Jun 8, 2008
3977 posts
1423 upvotes
Toronto
jesuisdanny wrote: She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.
That's bizarre, why one earth would someone hire someone for the sole reason of helping them build their credit. That sounds super scammy.
Newbie
Mar 4, 2014
78 posts
30 upvotes
Vancouver
wirebound wrote:
jesuisdanny wrote: She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.
That's bizarre, why one earth would someone hire someone for the sole reason of helping them build their credit. That sounds super scammy.
Does that even work?
Sr. Member
User avatar
Feb 12, 2013
837 posts
96 upvotes
elmalto wrote:
wirebound wrote:
jesuisdanny wrote: She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.
That's bizarre, why one earth would someone hire someone for the sole reason of helping them build their credit. That sounds super scammy.
Does that even work?
Sorry, I should clarify that it was her intent to take the contract to rebuild her credit, not the employer.
Deal Addict
Jan 2, 2015
1633 posts
639 upvotes
Toronto, ON
I don't know of any way for her to transfer her Hong Kong credit reports to Canada, so she's in an unfortunate situation here. She will probably have to take a 35% down payment that only some financial institutions will offer. An employment letter won't be enough without an active credit report.

Is she single? Does she actually need to buy a house? If she's married with children that makes sense, but if she's a single person she should rent something cheap for two or three years (enough to get two notices of assessment under her belt, because she'll still have a thin credit report).
Member
May 5, 2013
311 posts
98 upvotes
jesuisdanny wrote:
elmalto wrote:
wirebound wrote:

That's bizarre, why one earth would someone hire someone for the sole reason of helping them build their credit. That sounds super scammy.
Does that even work?
Sorry, I should clarify that it was her intent to take the contract to rebuild her credit, not the employer.
I hope she is not one of those defaulted on osap and ran back to Hong Kong.
Sr. Member
User avatar
Feb 12, 2013
837 posts
96 upvotes
manne3702 wrote:
jesuisdanny wrote:
elmalto wrote:

Does that even work?
Sorry, I should clarify that it was her intent to take the contract to rebuild her credit, not the employer.
I hope she is not one of those defaulted on osap and ran back to Hong Kong.
Umm, no? lol..
Deal Guru
User avatar
Apr 9, 2006
10595 posts
15784 upvotes
GT-EH
jesuisdanny wrote: My sister is a Canadian citizen who's been working in Hong Kong for the past ten years with PR. She's interested in buying a home and applying for a mortgage, but doesn't have much of any Canadian credit history for the past decade, though earns a good income in Hong Kong. She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.

I've been trying to find some resources specifically for non-residing Canadians buying homes in Canada, but most resources are specific to non-residents from other countries. Are there any discrepencies? If anyone has any resources, I'd really appreciate it! Mainly, we're trying to understand mortgage process, capital gains, etc.

Many thanks!
Quick Google:
http://www.getwhatyouwant.ca/international-buyer-guide

The federal gov't is going to close one loophole very soon:
http://www.theglobeandmail.com/news/nat ... e32204922/

Basically your sister cannot claim it as her principle residence anymore to avoid paying capital gains later.
Last edited by GiOBoY on Oct 3rd, 2016 10:49 am, edited 1 time in total.
Public Mobile Customer, $34/50GB CAN-US
"It is possible to commit no mistakes and still lose. That is not a weakness; that is life." - Picard
Banned
Dec 5, 2015
2038 posts
429 upvotes
Concord, ON
GiOBoY wrote:
jesuisdanny wrote: My sister is a Canadian citizen who's been working in Hong Kong for the past ten years with PR. She's interested in buying a home and applying for a mortgage, but doesn't have much of any Canadian credit history for the past decade, though earns a good income in Hong Kong. She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.

I've been trying to find some resources specifically for non-residing Canadians buying homes in Canada, but most resources are specific to non-residents from other countries. Are there any discrepencies? If anyone has any resources, I'd really appreciate it! Mainly, we're trying to understand mortgage process, capital gains, etc.

Many thanks!
Quick Google:
http://www.getwhatyouwant.ca/international-buyer-guide

The federal gov't is going to close one loophole very soon:
http://www.theglobeandmail.com/news/nat ... e32204922/

Basically your sister cannot claim it as her principle residence anymore to avoid paying capital gains later.
She can if she becomes a resident again and capital gains for non resident is not a big deal... it's only 25℅ and since it's not primary residence she can write off the mortgage and disposition expenses against the capital gain?
Deal Guru
User avatar
Apr 9, 2006
10595 posts
15784 upvotes
GT-EH
GrandePike wrote:
GiOBoY wrote:
jesuisdanny wrote: My sister is a Canadian citizen who's been working in Hong Kong for the past ten years with PR. She's interested in buying a home and applying for a mortgage, but doesn't have much of any Canadian credit history for the past decade, though earns a good income in Hong Kong. She's recently been hired to work for a firm in Eastern Ontario remotely under contract as a mean's to rebuild her credit.

I've been trying to find some resources specifically for non-residing Canadians buying homes in Canada, but most resources are specific to non-residents from other countries. Are there any discrepencies? If anyone has any resources, I'd really appreciate it! Mainly, we're trying to understand mortgage process, capital gains, etc.

Many thanks!
Quick Google:
http://www.getwhatyouwant.ca/international-buyer-guide

The federal gov't is going to close one loophole very soon:
http://www.theglobeandmail.com/news/nat ... e32204922/

Basically your sister cannot claim it as her principle residence anymore to avoid paying capital gains later.
She can if she becomes a resident again and capital gains for non resident is not a big deal... it's only 25℅ and since it's not primary residence she can write off the mortgage and disposition expenses against the capital gain?
I wonder what requirements will be put forth to prove residency... this will determine if the policy is a success or failure.
Public Mobile Customer, $34/50GB CAN-US
"It is possible to commit no mistakes and still lose. That is not a weakness; that is life." - Picard

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)