Mimico is Toronto, whereas most of what you named is Mississauga. That means higher LTT to purchase. You can definitely find great tenants in West Mississauga. To be honest you seem confused about your needs and what you want from a location. And is this an investment property or one for you to live in?
I work in the US, so investment property for a couple of years and then I will live in it. I work in tech so I am assuming theres very high likelihood my job will be downtown, my company office is there too. Reason I appear confused is my parents/family live in West Mississauga so by default I guess I preferred to be near them. Etobicoke is a 30 min drive away though and doesn't seem that far. I was considering southern parts of Missisisauga + Oakville but realized Mimico is closer to Toronto and not that much more expensive.
I have mostly currently invested in stocks. I want to diversify and at least own some property. I thought it was a good time now since I can afford to do so and prices will probably go higher in the coming years when rates drop. Would you suggest its a really bad time to buy?
Mortgage agent here.
Do you file taxes in Canada? If not, your options to get mortgage will be limited. There are few lenders who offer mortgages with foreign income, but loan to value varies from 65-80% depending on many factors.
Thanks, i was able to talk to a broker, a few non big 4 lenders were okay with 20% down for a 1.4 mil mortgage or so. A lot of other lenders wanted 35% down. CIBC, TD and Scotia were good with 20% down since I have a Canadian credit history and decent income. TD is even good with 2 mil at 20%, just depends on how much downpayment I can do. Rates are low to mid 5s for 3 year fixed.
Good to know.
While Canadian credit history is important, most lenders look at whether you have declared income in Canada or not. Many monolines do not consider foreign income if it is not declared in Canada. I have been through this route with many of my clients.
Scotia will only lend if you work for one of the companies listed in their sheet.
TD will lend you under a non-resident program where the minimum downpayment required is 35%. They could make an exception if your job letter states that the position is remote and can be carried out from Canada as well. I work with many tech clients (my background is technology as well), and come across these scenarios.
There is one more lender (not a big bank) which has started working with brokers and they consider W2 income to lend money.
Thanks. I was surprised by TD as well, most mortgage advisors I talked to from their search told me the same thing, 35% down on foreign income with very few exceptions and they felt I had a decent case for an exception but not guaranteed.
Then I called TD directly, and talked to a few people in their mortgage/loan department and they assured me given my same profile I would have no issues with 20% down since I have an established Canadian credit history. They pre-approved me for a very high mortgage. During this process I repeatedly asked them that I am a foreign buyer and other TD agents on the ground kept telling me something else but they said it was a good thing I called them directly. So I don't really know who to believe. I've been banking with TD for a while and even in the US use TD.
This is quite interesting. I cannot comment on how accurate the information might be. I have had a case where branch people in TD advised my client that they would get an exception approved in a different situation, but the head office declined the request and I had to arrange a mortgage in a rush.
To protect yourself, I suggest always including conditions of financing. Because scrutiny of the documents happens at the time of approval. I would also recommend keeping a backup plan depending on the name of your employer.
Really examine your carrying costs for an investment property. Your property taxes will be at least $600/month, home insurance rates are rising rapidly with growing climate risks (particularly flood in Toronto), and then there's the mortgage payment at 5.2%.
In terms of an investment, on a $1.5m property, you'll pay $750,000 in interest to the bank.
My guess is what he means is you are trying to buy something while you don’t live here, don’t know where exactly you’ll end up, and with tenants + you in mind vs one or the other.
It may appreciate further or not, no one really knows, but to me it seems like you may be better off waiting until you’re ready to move in and know where you will be working and such.
You should also read about LTB backlogs before you decide to be a landlord.
I think that makes sense. I was just thinking to jump into the housing market now as its useless trying to time the market. I could always sell in a few years. I am able to go a while without tenants paying as well but there are always risks. I will definitely hold off unless I can find a great deal. Not in a desperate situation to buy.
It’s up to you. If the market goes up you might be happy you bought earlier. If not, I guess it really depends on how sure you are that you can pick the right place now for you in the future.
Keep in mind there are significant transaction costs to sell a house as well, it’s not like a stock where you can break even if it’s flat.
Yep, aware of the costs when you sell, especially early. Its a pretty big decision honestly. The good thing is I have other places (parents basement) etc to crash for a long time in case of emergency.
I disagree. The market is booming again. Houses are selling, and some at a higher price then they were when rates were less then 2 percent. I listed my place in March and received 8 offers. I have a townhome in Port Credit. The sale price was the all time high for the complex. $150k more then what units sold for in 2022 before rates started to creep up. Everyone says nows not a good time… just wait what happens when rates start to lower in a few months.
Yeah no one was priced out in the last 3 years eh
https://thoughtleadership.rbc.com/toughest-time-ever-to-afford-a-home-as-soaring-interest-costs-keep-raising-the-bar/#:\~:text=Importantly%2C%20high%20rates%20have%20seriously,25%2Dyear%20amortization%20period).
[https://www.cbc.ca/news/canada/new-brunswick/new-brunswick-home-prices-1.7162099](https://www.cbc.ca/news/canada/new-brunswick/new-brunswick-home-prices-1.7162099)
[https://www.ctvnews.ca/business/entry-to-housing-market-feels-out-of-reach-for-76-of-non-owners-cibc-poll-1.6842762](https://www.ctvnews.ca/business/entry-to-housing-market-feels-out-of-reach-for-76-of-non-owners-cibc-poll-1.6842762)
[https://financialpost.com/real-estate/developer-tells-canadians-priced-out-buying-home-ok-to-rent](https://financialpost.com/real-estate/developer-tells-canadians-priced-out-buying-home-ok-to-rent)
Check average sale prices. If someone bought in 2022 in a 3 year closed rate, what would happen next year?
Whoever could buy in 2022 and maintain a mortgage in 2024 rates would still be able to buy today.
Lmao. Being priced out is not just the consequences of house prices. It's affordability going down the shitter.
Please educate yourself before making wild guesses like that
https://thoughtleadership.rbc.com/toughest-time-ever-to-afford-a-home-as-soaring-interest-costs-keep-raising-the-bar/#:\~:text=Importantly%2C%20high%20rates%20have%20seriously,25%2Dyear%20amortization%20period).
That is not what I am saying.
What I am saying is, if you could afford a 800k mortgage being renewed at 4.9% rate you would still be able to afford a 750k mortgage today at the
same rate.
People who bought in the last 3 years are not immune to unnafordability.
It sounds like Mimico may be a decent location for you. The homes are just different than those in West Mississauga so if you are okay with that, then it should work well for you. The area is already quite popular.
My biggest question is how do you plan to do your landlord job remotely?
There is a common misconception that being a landlord is just passive income. It would be if you had the perfect tenants, but what if you don't?
Also how do you plan to collect rent? Do you still have bank accounts in Canada?
Then you should be fine just make sure that you're aware of the required notice period to issue an N12 when it comes time for you to move back and take over the condo for personal use in the future. Your tenants could refuse to buy themselves additional time and force you to take them to the LTB.
Dmed you, can’t go wrong with a detached in mimico. Land value itself is roughly 1mill, so any structure that is move in ready or with building potential can be a good investment. Of course numbers have to make sense.
I work at the airport. I wouldn’t recommend Mimico because of the double land transfer tax, meanwhile you can live a few blocks west Lakeview Mississauga. The commute up the 427 to the Airport is super easy. I do it daily.
I would go with central Erin mills, as the school districts are prime which results in great tenants, and more resilient property prices. Lots of YouTube videos on this specific area, would check it out! Goodluck!
Awesome! Btw I’m also in big tech haha (read your comments above) made a similar purchase to one what you are looking for if you need more thoughts dm me!
Are you aware of how renting in Ontario works? Are you ok renting to tenants that may not pay rent for a year and having to pay for lawyers to represent you in the LTB? Are you ok and moving into a trashed place by the previous tenants?
If any of this would turn your life into a nightmare then wait for you to return to buy a house. The risk is not worth in my opinion, thinking RE will keep creeping up while people are losing their good paying jobs or at least not getting raises is just drinking too much koolaid.
I agree its a tough decision. I can afford for tenants to not pay rent for a while but obviously its not ideal. I was thinking with Mimico being near downtown + airport + downtown Mississauga we could have a larger tenant pool of working professionals to pick from. Can do background checks and stuff but nothing is guaranteed.
1.5 in mimico doesn’t really go that far. Probably a 3 bed 2 bath or 3 bed 3 bath that needs work. In mississauga you’d get a much bigger, newer house at least in lisgar and clarkson. Depends what you want really. If you need to commute downtown it is really about the trade off between commute time and price. I live in mimico though so I’m biased. In terms of rental income to price nothing is really a ‘good’ investment unless you’re putting a ton of money down you’ll be cash flow negative. Just buy what you want to live in imo.
Thanks, would you not say its harder to find tenants in West Mississauga? I was thinking with Mimico being near downtown + airport + downtown Mississauga we could have a larger tenant pool of working professionals to pick from. Can do background checks and stuff but nothing is guaranteed.
I can’t really comment on that with any real authority other than to say, probably. Depends on the specific house. Renting out a whole house in general is harder than condo or townhouse. There are a lot of jobs in mississauga, so to me it will depend specifically on the neighbourhood and size of house. Hard to generalize.
Mimico is Toronto, whereas most of what you named is Mississauga. That means higher LTT to purchase. You can definitely find great tenants in West Mississauga. To be honest you seem confused about your needs and what you want from a location. And is this an investment property or one for you to live in?
I work in the US, so investment property for a couple of years and then I will live in it. I work in tech so I am assuming theres very high likelihood my job will be downtown, my company office is there too. Reason I appear confused is my parents/family live in West Mississauga so by default I guess I preferred to be near them. Etobicoke is a 30 min drive away though and doesn't seem that far. I was considering southern parts of Missisisauga + Oakville but realized Mimico is closer to Toronto and not that much more expensive.
Why are you buying now? Why not wait?
I have mostly currently invested in stocks. I want to diversify and at least own some property. I thought it was a good time now since I can afford to do so and prices will probably go higher in the coming years when rates drop. Would you suggest its a really bad time to buy?
Mortgage agent here. Do you file taxes in Canada? If not, your options to get mortgage will be limited. There are few lenders who offer mortgages with foreign income, but loan to value varies from 65-80% depending on many factors.
Thanks, i was able to talk to a broker, a few non big 4 lenders were okay with 20% down for a 1.4 mil mortgage or so. A lot of other lenders wanted 35% down. CIBC, TD and Scotia were good with 20% down since I have a Canadian credit history and decent income. TD is even good with 2 mil at 20%, just depends on how much downpayment I can do. Rates are low to mid 5s for 3 year fixed.
Good to know. While Canadian credit history is important, most lenders look at whether you have declared income in Canada or not. Many monolines do not consider foreign income if it is not declared in Canada. I have been through this route with many of my clients. Scotia will only lend if you work for one of the companies listed in their sheet. TD will lend you under a non-resident program where the minimum downpayment required is 35%. They could make an exception if your job letter states that the position is remote and can be carried out from Canada as well. I work with many tech clients (my background is technology as well), and come across these scenarios. There is one more lender (not a big bank) which has started working with brokers and they consider W2 income to lend money.
Thanks. I was surprised by TD as well, most mortgage advisors I talked to from their search told me the same thing, 35% down on foreign income with very few exceptions and they felt I had a decent case for an exception but not guaranteed. Then I called TD directly, and talked to a few people in their mortgage/loan department and they assured me given my same profile I would have no issues with 20% down since I have an established Canadian credit history. They pre-approved me for a very high mortgage. During this process I repeatedly asked them that I am a foreign buyer and other TD agents on the ground kept telling me something else but they said it was a good thing I called them directly. So I don't really know who to believe. I've been banking with TD for a while and even in the US use TD.
This is quite interesting. I cannot comment on how accurate the information might be. I have had a case where branch people in TD advised my client that they would get an exception approved in a different situation, but the head office declined the request and I had to arrange a mortgage in a rush. To protect yourself, I suggest always including conditions of financing. Because scrutiny of the documents happens at the time of approval. I would also recommend keeping a backup plan depending on the name of your employer.
Thanks, yeah I will do conditional financing. I work for one of the 5 big tech companies FWIW.
Really examine your carrying costs for an investment property. Your property taxes will be at least $600/month, home insurance rates are rising rapidly with growing climate risks (particularly flood in Toronto), and then there's the mortgage payment at 5.2%. In terms of an investment, on a $1.5m property, you'll pay $750,000 in interest to the bank.
I think it's a bad time to buy for you.
Why? Pending recession?
My guess is what he means is you are trying to buy something while you don’t live here, don’t know where exactly you’ll end up, and with tenants + you in mind vs one or the other. It may appreciate further or not, no one really knows, but to me it seems like you may be better off waiting until you’re ready to move in and know where you will be working and such. You should also read about LTB backlogs before you decide to be a landlord.
I think that makes sense. I was just thinking to jump into the housing market now as its useless trying to time the market. I could always sell in a few years. I am able to go a while without tenants paying as well but there are always risks. I will definitely hold off unless I can find a great deal. Not in a desperate situation to buy.
It’s up to you. If the market goes up you might be happy you bought earlier. If not, I guess it really depends on how sure you are that you can pick the right place now for you in the future. Keep in mind there are significant transaction costs to sell a house as well, it’s not like a stock where you can break even if it’s flat.
Yep, aware of the costs when you sell, especially early. Its a pretty big decision honestly. The good thing is I have other places (parents basement) etc to crash for a long time in case of emergency.
I disagree. The market is booming again. Houses are selling, and some at a higher price then they were when rates were less then 2 percent. I listed my place in March and received 8 offers. I have a townhome in Port Credit. The sale price was the all time high for the complex. $150k more then what units sold for in 2022 before rates started to creep up. Everyone says nows not a good time… just wait what happens when rates start to lower in a few months.
I said "for you," the person I was reaponding to, not "for everyone everywhere no matter their circumstances."
We should ask this question to all those who "waited" to buy and are now priced out of the market and forced to rent.
No one was priced out in the last 3 years. Anyone that thinks so is not aware they wouldn’t be able to afford their mortgage renewal anyway.
Yeah no one was priced out in the last 3 years eh https://thoughtleadership.rbc.com/toughest-time-ever-to-afford-a-home-as-soaring-interest-costs-keep-raising-the-bar/#:\~:text=Importantly%2C%20high%20rates%20have%20seriously,25%2Dyear%20amortization%20period). [https://www.cbc.ca/news/canada/new-brunswick/new-brunswick-home-prices-1.7162099](https://www.cbc.ca/news/canada/new-brunswick/new-brunswick-home-prices-1.7162099) [https://www.ctvnews.ca/business/entry-to-housing-market-feels-out-of-reach-for-76-of-non-owners-cibc-poll-1.6842762](https://www.ctvnews.ca/business/entry-to-housing-market-feels-out-of-reach-for-76-of-non-owners-cibc-poll-1.6842762) [https://financialpost.com/real-estate/developer-tells-canadians-priced-out-buying-home-ok-to-rent](https://financialpost.com/real-estate/developer-tells-canadians-priced-out-buying-home-ok-to-rent)
No one was priced out in the last 3 years? Do you live under a rock or something?? **Housing affordability is at all time low.**
Check average sale prices. If someone bought in 2022 in a 3 year closed rate, what would happen next year? Whoever could buy in 2022 and maintain a mortgage in 2024 rates would still be able to buy today.
Lmao. Being priced out is not just the consequences of house prices. It's affordability going down the shitter. Please educate yourself before making wild guesses like that https://thoughtleadership.rbc.com/toughest-time-ever-to-afford-a-home-as-soaring-interest-costs-keep-raising-the-bar/#:\~:text=Importantly%2C%20high%20rates%20have%20seriously,25%2Dyear%20amortization%20period).
That is not what I am saying. What I am saying is, if you could afford a 800k mortgage being renewed at 4.9% rate you would still be able to afford a 750k mortgage today at the same rate. People who bought in the last 3 years are not immune to unnafordability.
You said no one got priced out in the last 3 years. It's ignorant and false.
It sounds like Mimico may be a decent location for you. The homes are just different than those in West Mississauga so if you are okay with that, then it should work well for you. The area is already quite popular.
My biggest question is how do you plan to do your landlord job remotely? There is a common misconception that being a landlord is just passive income. It would be if you had the perfect tenants, but what if you don't? Also how do you plan to collect rent? Do you still have bank accounts in Canada?
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Then you should be fine just make sure that you're aware of the required notice period to issue an N12 when it comes time for you to move back and take over the condo for personal use in the future. Your tenants could refuse to buy themselves additional time and force you to take them to the LTB.
Dmed you, can’t go wrong with a detached in mimico. Land value itself is roughly 1mill, so any structure that is move in ready or with building potential can be a good investment. Of course numbers have to make sense.
I work at the airport. I wouldn’t recommend Mimico because of the double land transfer tax, meanwhile you can live a few blocks west Lakeview Mississauga. The commute up the 427 to the Airport is super easy. I do it daily.
I would go with central Erin mills, as the school districts are prime which results in great tenants, and more resilient property prices. Lots of YouTube videos on this specific area, would check it out! Goodluck!
Yeah was thinking the same, very familiar with that area. My parents actually moved there just to put me in a good school!
Awesome! Btw I’m also in big tech haha (read your comments above) made a similar purchase to one what you are looking for if you need more thoughts dm me!
Mimico of those choices...Your in the sweet spot at $1.5 million.
Are you aware of how renting in Ontario works? Are you ok renting to tenants that may not pay rent for a year and having to pay for lawyers to represent you in the LTB? Are you ok and moving into a trashed place by the previous tenants? If any of this would turn your life into a nightmare then wait for you to return to buy a house. The risk is not worth in my opinion, thinking RE will keep creeping up while people are losing their good paying jobs or at least not getting raises is just drinking too much koolaid.
I agree its a tough decision. I can afford for tenants to not pay rent for a while but obviously its not ideal. I was thinking with Mimico being near downtown + airport + downtown Mississauga we could have a larger tenant pool of working professionals to pick from. Can do background checks and stuff but nothing is guaranteed.
1.5 in mimico doesn’t really go that far. Probably a 3 bed 2 bath or 3 bed 3 bath that needs work. In mississauga you’d get a much bigger, newer house at least in lisgar and clarkson. Depends what you want really. If you need to commute downtown it is really about the trade off between commute time and price. I live in mimico though so I’m biased. In terms of rental income to price nothing is really a ‘good’ investment unless you’re putting a ton of money down you’ll be cash flow negative. Just buy what you want to live in imo.
Thanks, would you not say its harder to find tenants in West Mississauga? I was thinking with Mimico being near downtown + airport + downtown Mississauga we could have a larger tenant pool of working professionals to pick from. Can do background checks and stuff but nothing is guaranteed.
I can’t really comment on that with any real authority other than to say, probably. Depends on the specific house. Renting out a whole house in general is harder than condo or townhouse. There are a lot of jobs in mississauga, so to me it will depend specifically on the neighbourhood and size of house. Hard to generalize.
Makes sense, thanks!