Real Estate

Getting approved for a mortgage on a home in another city

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  • Jan 28th, 2020 4:40 pm
[OP]
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Mar 30, 2010
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Kagaaruk, NU

Getting approved for a mortgage on a home in another city

If my wife and I have jobs in Toronto, can we get approved for a mortgage on a home in another city (e.g. Ottawa)?

I can work remotely, but my wife would resign as soon as the home is ours and look for a new job in the city we'd be moving to. In the mean time I'd have no issues supporting the home myself.
6 replies
Deal Fanatic
Nov 22, 2015
5673 posts
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dc200 wrote: If my wife and I have jobs in Toronto, can we get approved for a mortgage on a home in another city (e.g. Ottawa)?

I can work remotely, but my wife would resign as soon as the home is ours and look for a new job in the city we'd be moving to. In the mean time I'd have no issues supporting the home myself.
As long as your income supports the application, it doesn't matter where the property is.

It would be best to disclose that your wife will not be working... She may required to obtain ILA if you decide to keep her off title. If she is on title, all debts will be included in the debt ratio calculations.
[OP]
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Mar 30, 2010
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Kagaaruk, NU
I'd like to keep her on the title.

My wife does intend to continue working. It's just that I'm planning ahead to give her 2-3 months to find a new job once we've relocated.
Newbie
Nov 26, 2018
98 posts
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Calgary
When we went through it the broker asked for a letter from my employer as proof for the lender that I would continue to work full time, remotely, for $xyz amount yearly salary.

I made enough to to cover the mortgage solo so it was supposedly going to go through without issue but my partners employer decided they didn't want to lose her so she could work remotely. Same letter from her employer and no issues getting a mortgage.

Not sure how it might shake out for you as it comes down to your personal financial situation and background. Speaking to a broker is probably your best bet, someone on here will probably chime in I'm sure, but that's just my personal experience when we moved cross country.
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Feb 2, 2014
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Toronto
dc200 wrote: I'd like to keep her on the title.

My wife does intend to continue working. It's just that I'm planning ahead to give her 2-3 months to find a new job once we've relocated.
You can keep her on title, assuming her debt load doesn't kill the deal.

Yes, you can buy in another city. Lender will ask questions of course, given property is far away from your employment.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
[OP]
Deal Addict
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Mar 30, 2010
2793 posts
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Kagaaruk, NU
CdnRealEstateGuy wrote: You can keep her on title, assuming her debt load doesn't kill the deal.

Yes, you can buy in another city. Lender will ask questions of course, given property is far away from your employment.
Both of us are debt free, so perhaps adding her on is only a plus due to her income.

Anyway, based on some of the responses here, it looks like it might be a safer bet for my wife to find a job in the other city first before we purchase or get a mortgage. For myself, I have no problem proving to the lender that my employer allows me to telecommute.
Deal Fanatic
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Feb 2, 2014
8244 posts
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Toronto
dc200 wrote: Both of us are debt free, so perhaps adding her on is only a plus due to her income.

Anyway, based on some of the responses here, it looks like it might be a safer bet for my wife to find a job in the other city first before we purchase or get a mortgage. For myself, I have no problem proving to the lender that my employer allows me to telecommute.
Then, assuming you can qualify on your own, you can keep her on title and buy now.

They may just check with your employer that you work from home.

You should be fine.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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