Posted on: 02-09-04 13:38:21
I am a newbie in Toronto (landed pr - 3 mo) and am currently working for a well reputed conglomerate in Canada. I am wondering if I can get 95%+5% loan for a condo? I havent established a credit card yet. My US credit history is not good and hence dont want the banks to look at it.
Also, is it possible for a seller to exaggerate the price so that 95% of the loan will cover the entire mortgage?
The reason for 0 down mortgage is the down payment. I dont want to spend next 2-4 years raising the down payment. My debt ratio is not bad (just car payment) so I am curious whether I will qualify or not.
Also, how does mississauga compare with North York for condos? I work downtown and commute is another question..
Whether you qualify or know your best bet would be to approach the bank and see. We don't know your salary nothing, u just said reputed company.
Your US credit history is not good, not sure if that will affect you in Canada if there is a bureau that reports. But yes I do know of a case of a person who owed a good amount to a company in dubai and that was reported to the credit bureau in Canada and this person when purchasing a house had some problems but he was able to justify that it was due to negligence of his partner and was cleared.
3 months is too little for having good credit history in Canada. I know of people who have attempted to take a loan of $ 1000 after three months and have been declined. A solid credit history with permanent full times jobs is established in a year or more.
You can take as much information from people who have had similar experiences but your best bet would be to approach one of the bank and check for yourself if you qualify.
Cherryl
Quote:
Orginally posted by seth
Also, is it possible for a seller to exaggerate the price so that 95% of the loan will cover the entire mortgage?
Is this not fraud? And, remember that you're the buyer not a seller. So, if the seller exaggerates the price of the property you don't get any benefit - on the otherhand you're paying more. The banks don't give out mortgate loans blindly. They do their own due diligence to ensure that the price agreed upon is reasonable in the context of current market.
Daks
well reputed company.. ?? what job.. annual salary?
Can u pay a morgage of about 12-1300 including all expenses. may have to share condo with someone.
US history does not come here for sure.
why do u want to inflate.. no such thing here please.
BUT FIRST GET A CREDIT CARD.. IT ISa MUST. HAVE SOME MONEY IN ACCOUNT . do u have lawyer fee etc .. about 3- 5 thousand .. if not .. then wait and get it .
ask again if u hav e any other query
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trying to find real persons
Quote:
Orginally posted by Daks
Is this not fraud?
definately... its a criminal offence, and if its over $5000 punishable by max of 10 years in jail...
besides, as you say... banks are not stupid...
Found out that I will not qualify for A class lenders based on my lack of canadian credit history... only B lenders which means 7% !! which in turn means that my payment monthly will be very high until I refinance it which is atleast a year or two away.. I have a US credit score of 500 which is poor and hence may not be usable.
The option is to wait for a year and build up credit history (going to get a secured credit card soon if I dont get one right away)
I currently pay a grand a month and I figured I might take advantage of new rules and pay a little more to get my own place... I do have money for all the closing costs etc.
Quote:
Orginally posted by seth
Found out that I will not qualify for A class lenders based on my lack of canadian credit history... only B lenders which means 7% !! which in turn means that my payment monthly will be very high until I refinance it which is atleast a year or two away.. I have a US credit score of 500 which is poor and hence may not be usable.
The option is to wait for a year and build up credit history (going to get a secured credit card soon if I dont get one right away)
I currently pay a grand a month and I figured I might take advantage of new rules and pay a little more to get my own place... I do have money for all the closing costs etc.
Hi Seth,
You have mentioned that even though you are only 3 months old in Canada but do have a car payment. So, if this car was taken on a loan (financed or leased) in Canada, then the finance company may have started reporting this to the 'credit bureau' which means they must have now started a file on you and you are in the process of building some credit here. You can check this with Equifax by asking for a 'free credit report' and you would know if there is file on you or not.
Secondly, you mentioned that you are working for a good company which means you could be making good money, then there are chances of your getting a mortgage ( if not from an A lender, then from a B or C lender who do not get default mortgage from CMHC but insure it themselves) but it can only be determined after getting all the facts.
If you need any help in how to get free credit report from Equifax, you can email me and I would send you the form and the procedure to get this free report or you can go on the website http://www.equifax.ca" rel="nofollow">LINK and can get all the info from there.
Good luck
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
