Purchasing a house in Thunder Bay on Work Permit is feasible as part of the “New To Canada program” for First Time Home Buyers at various Canadian banks and Lenders.
Highlighted below are some current general guidelines for your reference. Nevertheless, please note that guidelines are subject to change and revisions. It is a good idea to discuss your situation and get advice directly from a mortgage specialist.
How Can People on Work Permit Buy Property in Thunder Bay (Canada)?
You can buy a property on a work permit after paying Foreign Buyers Tax or NRST. The Non-Resident Speculation Tax (NRST) is a 15 percent tax on the buying or acquisition of an interest in a residential home located in the Greater Golden Horseshoe Region (GGH) by people who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
This amount is paid back to you when you get your Permanent Residence (PR) or under situations outlined below. (Exceptions include apartment buildings with 7+ units, land, commercial or industrial properties.)
Related : Different Types of Houses in Thunder Bay you Should Know About
Key Guidelines
For standard mortgages, banks or lenders can work with home buyers making a 35% down-payment as long as they have a valid work permit and it is still valid for 6 months or more.
For Insured mortgages (where the home buyer is putting in less than 20% down payment), the borrower must have arrived in Canada within five years of the application date and provide a copy of their passport from the country of origin showing the date of entry.
Also for up to 90% LTV, a written reference from the present employer, or a letter of reference from a well known Canadian financial institution or the last 6 months of Canadian bank statements from a main bank account or U.S. or international credit bureau report displaying satisfactory credit history.
For 90% to 95%, one of the following is also required:
Proof of timely payments (no arrears) for the past 12 months from two sources of credit. Approved sources include the following:
Canadian rental payment history verified by letter from the landlord (must show name of tenant, monthly rent, length of tenancy, payment history) and bank statements (must support the amount of rent and timeliness of payments mentioned in the letter).
Canadian utility payment history from an appropriate source such as hydro, gas, telephone, or cable. They require a letter from the service provider affirming a satisfactory payment history for the past 12 months or 12 months billing statements or the U.S. or international credit bureau reports demonstrating satisfactory credit history.
The borrower must give a complete address from their country of origin for this reason.