“Have any [of your readers] ever seen any articles regarding “foreigner mortgage”?
Here is the story -
One day I attended a lunch in a friend’s house; I did not realize there were her other friends coming over from China and visiting the same time. During the lunch, our topic was buying house in Vancouver – The friend who was from China was looking for to buy a 2M house and it did not surprise me at all since I have been hearing the story about those wealthy buyer. What surprised me was the mortgage. This friend of mine whom is on the visitor visa and that means not yet a Canadian citizen nor Residence. In the first place, I thought she bought her house in 100% cash since she has no any credit or nothing in Vancouver… Till, she mentioned to me that she feels that cost of living in Vancouver is very high and I started to asked her what made her think this way; she said the hydro bill, the tax and the mortgage fee…etc. I was kind of in shocked when I hear “mortgage”. She later told that she has a 65% loan with the local bank and she has only paid 35% down. She said she has a business in China and the bank required her to provide some documents from her business in China then she got the mortgage from the Canadian bank. I had my month wide open – - believe or not.
My question is – is the foreigner really buying the house with whole cash? or it’s sooner going to be Canadian bank’s debt?
I wish someone could provide some comments or stories if they do know anything….. I have been sitting on my cash and don’t want to put them in the bubble market.”
-’Sab’ via e-mail to VREAA 11 Mar 2011
Can any readers verify whether the described financing scenario is occurring in the Vancouver market?
Further: On an obliquely related note: We recently spoke to a couple with a modest annual income who had used a cash windfall as a 30% down-payment on a BC property. They were puzzled, given the size of their down-payment, that they’d had to undergo such prolonged scrutiny by the lending bank. The degree of scrutiny was likely because their deposit was too high for the mortgage to be CMHC insured. If they’d had only 10% down, it likely would have been quicker and easier for them to ‘qualify’. – vreaa.