What real estate loans should Canadian investment immigrants pay attention to?

1. Foreigners need to open a bank account in Canada. Since it is a loan to buy a house, it must be paid back every month. Without a bank account, it is impossible to pay the principal and interest of the loan. Many friends called to ask, Chinese mainland's friends want to buy a house in Canada, but they have never been to Canada. Can they borrow money to buy a house? Although major Canadian commercial banks have branches or offices in China to help open accounts, accounts usually need to be activated in Canada before they can be used for payment.

Foreigners cannot have bad credit records in Canada. Many non-residents who have studied or worked in Canada for many years study and work in Canada. If their credit history is not good, it will be difficult for them to apply for a mortgage loan successfully. Foreigners have no credit history in Canada, but they can't have bad records. For example, a non-Canadian resident who holds a visiting visa and has no credit record in Canada can apply for a mortgage loan, but it is difficult to apply for a bad credit record. Therefore, whether you are a Canadian resident or not, you need to keep a good credit record and form a good habit of paying credit card bills and utilities on time.

Foreigners need enough down payment. Non-Canadian residents can apply for mortgage loans in some financial institutions in Canada, but the down payment is usually higher than that of Canadian residents. Except for non-residents with work visa income, such applicants can pay at least 10% down payment. Non-local residents with no income need at least 35% down payment. Canada's financial system is highly commercialized, and different commercial banks or non-bank financial institutions have different loan policies. At present (2065438+April 2004), the five-year fixed interest rate of bank loans is about 2.99%.

Foreigners can entrust their relatives and friends in Canada to complete the mortgage loan. Many friends ask, if you come to Canada with a visiting visa, take a fancy to real estate, sign a house purchase contract and leave when the visa expires, can you entrust your friends in Canada to complete the house purchase loan transaction? The answer is yes. Entrusting a third party to deliver property requires signing a power of attorney (POA) witnessed by a law firm, which is a power of attorney. ?

The most important thing is to find the bank that agrees to sign the loan documents through the power of attorney. There are not many such banks. Even if they agree, banks will have strict requirements on the details of the transaction. Therefore, foreigners who come to Canada to buy a house with a visiting visa should know the relevant requirements of the bank and the matters needing attention in the transaction before leaving Canada.

5. Foreigners need to manage and arrange Canadian bank accounts. In the real estate transaction, there are two important links that need to be withdrawn from the bank account. One is to pay the house purchase deposit, and the other is to pay the down payment balance before the transfer of property rights. Some buyers with tourist visas can't stay in Canada, so they need to reach an agreement with the bank in advance so that the transaction can be smooth when they need to pay.