Announcement

Collapse
No announcement yet.

Mortgage to buy a house in another city

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Mortgage to buy a house in another city

    We are self-employed yard maintenance workers living in Vancouver who are growing tired of living in this expensive city and would really like to buy a house, maybe in Nanaimo on Vancouver Island. Although our income isn't super high ($80k), we do have $200k in savings from a house we sold twelve years ago in Victoria.
    So we are faced with a dilemma. We have lots of savings and a steady income stream for the last decade, but if we move to a smaller town on Vancouver Island and try to get a mortgage the bank will see that we are starting from scratch, even though we could easily put down 25%-30%. They would likely want us to show a decent income stream in our new location for a couple of years before we could qualify.
    On the other hand, could we just continue living and working in Vancouver and buy a house in Nanaimo and rent it out to qualify for a mortgage? Could we then move to Nanaimo in a year or two and occupy the house or would that violate the mortgage, even if we had not missed a payment?
    Moving to Nanaimo and renting and starting over for a couple of years seems the most feasible option, but we are getting older and the wait is just something we would love to avoid.
    Of course, the pandemic complicates everything, including the likelihood we could start up our business on the Island.
    Just curious whether anyone else has somehow gotten a mortgage for a house in a different town from the one they work in? Has anyone who is self-employed moved and been able to get a mortgage right away? Does a steady income stream in your previous town and a big down payment make any difference?

  • #2
    Just curious whether anyone else has somehow gotten a mortgage for a house in a different town from the one they work in? Has anyone who is self-employed moved and been able to get a mortgage right away? Does a steady income stream in your previous town and a big down payment make any difference?
    Yes. Write me in PM

    Comment


    • #3
      A more far-sighted option is to continue working at the old place in Vancouver to buy a house in the place you need. Then you can keep a constant stream of income, apply for a mortgage. You can rent out that house to tenants, provided that the payment for the house will be sufficient for your savings. When we were moving new house, we thought through all the possible consequences of our move. We were really refused a mortgage until we started earning enough money after five years of living in a new city. Don't be like us.

      Comment

      Working...
      X