Buyers from out of town: welcome!

What I do for you

You can expect me to provide the best service possible acting on your behalf, especially if you are not presently in Nova Scotia. During the buying process you need someone who can make decisions for you and to make sure all conditions are being met on time. This is part of my job for you. I would be in contact with you by phone, e-mail, and by fax.

Taxes

Taxes would be the same as if you were living here on a permanent basis. The only difference would involve when you sell your property there would be a holdback for tax purposes in that year.

Mortgages

Different banks and mortgage companies have different programs available for non-resident mortgages but there are some basic points to remember. 

• down payment of 35%, summer homes 40%
• meets the needs of those who primarily live in other countries but visit Canada for recreational purposes and who declare their income for tax purposes in another country
• should have photo identification
• provide evidence of satisfactory credit history from country of residence (letter of reference including credit history from Bank)
• spousal co-signature required if married
• verification of non-resident status may be done via copies of latest tax return, letter from employer

Points to consider:

The services of a mortgage broker can help you significantly, especially when you are from out of country. They can tap into a large number of lenders to find the best rates and term for you and will work with you on a personal basis. For anyone without a regular salary job in Canada such as self-employed or retired but with good equity, it can be a good route to follow. (See Mortgages)

When buying real estate in Nova Scotia, you might consider looking for a mortgage rather than buying outright, especially if interest rates are favourable.

It’s a good idea to have a bank account in Nova Scotia from the bank of your choice so that when you need to make a deposit as part of your offer for Purchase and Sales Agreement, you would already have funds in a Canadian Bank.

Living outside Canada can present a host of different circumstances for you buying in Nova Scotia and dealing with mortgages. Part of my job is to make sure you are aware of this and your options available. The whole idea is to make it as simple as possible by keeping you informed.

Mortgages

By the time you decide to invest in a home, you may have had previous credit and have a working relationship with a lender. You may have already obtained a pre-approval certificate from a lender. I can give you a list of lenders and mortgage brokers for you to review. See Services

Having a pre-approval letter from you lender can make the process of buying properties easier for you. A pre-approval letter is a statement from a lender that you are qualified for a specific amount for a certain period of time. With this in mind, you can compete with any other offers for the home of your dreams. See Pre-approvals

Mortgage brokers - A mortgage broker is an agent for banks, mortgage companies, finance companies, etc., somewhat like an insurance broker with a number of lenders. They can draw from them looking for the best rate and conditions for you. A quick analysis of your personal situation by a qualified broker lets him/her know where to shop the market through a large network of lenders to find what is best for you. For self-employed, retired, out of province buyers, a mortgage broker can especially become important to you.

Questions/Answers for a mortgage broker (exerpts from Chris Golding-Mortgage Broker with Mortgage Intelligence)

Explain how you deal with people with different needs?

Canadians relocating to for example, Annapolis Royal are treated the same way as any Canadian buyer- as little as 0% down at the banks posted rate. If they put down 5%+, they will qualify for the best discount rates in the industry with a number of lenders (20+ lenders)

Canadians buying a second home such as cottage, seasonal residence, etc. where CMHC has a product for people who are buying a second home with as little as 5% down.

Canadians buying their primary home who are self-employed and cannot verify income to meet guidelines can look at several options. They only need good credit and proof that they are self-employed. The lenders usually request the latest revenue income tax up-to-date status.

Americans buying a residence in Canada going through charter banks will require 35% down. They need to prove income if employed in the U.S. They will need proof of down payment through investment statements, bank statements, or other means.

Americans self-employed need their last tax return showing no taxes in arrears. All other terms as above are required.

Europeans buying in Annapolis area would simply need to have two credit references from their banking institution, if in the United Kingdom. They would also need to verify income and down payment.

Explain what kind of interest rate a Buyer would pay?

For all borrowers, the rates and terms are flexible. They can choose variable or fixed rates. “ We deal with approximately 25 Lenders and each of these offer several products. This is our advantage over any individual bank.”

Do you charge brokerage fees for your service?

An applicant who is approved with satisfactory income, credit history, and net worth is not charged mortgage fees.

Helping you find property

There are a number of methods for helping you find the property that meets your requirements. The local MLS system, our extensive Re/Max files, real estate guide, networking with other agents, etc.

But the main concern if you are here for a short time, is to make sure you obtain pertinent information on the real estate market in our area to help you in making your decision. I have put together information pamphlets for buying/selling properties to help make this process easier for you.

I would arrange for showings and advise you concerning any issues you may have as well as give you as much information as I can about the properties.

When you arrive, I would escort you to all of the viewings, find as much information as possible about any specific properties, and help negotiate in your best behalf if you decide to make an offer to purchase.

During the whole process of purchasing a property, I would act on your behalf to make sure everyone is completing their role for you such as lawyers, home inspector, home insurability, water test (if required), change of electrical, telephone, etc.

Forms

I can explain the necessary forms as provided by NSAR and help you complete these forms. Along with this, if you need sample forms to review before deciding, they can easily be e-mailed or faxed to you. Remember, that with today’s technology, it is not unusual to complete an offer and the closing without you actually being present. You can also have it conditional that you view the property and that it meets with your approval before closing.

Services

I have available a partial list of services to help you in your real estate dealing. They include such people as lawyers, mortgage brokers, banks, home inspectors, general contractors, plumbers, electricians, and many more. See Services

Moving (See Services)