Korean Job Discussion Forums

bloodorange · Joined: 04 Apr 2008

My question is regarding the many that are saving up money here to eventually return home and purchase a house.

So my question is this:
how much do you need to save (for a downpayment) and how long will it take to accumulate this amount (from your standpoint)?

egrog1717 · Joined: 12 Mar 2008

There are banks in Ontario right now that will let you take a 300k+ morgage right now with no money down...

Personally though I would say 10k would be a damn good start... No reason why you couldn't do that in under a year working in Korea...

Bryan · Joined: 29 Oct 2007

Often, the minimum is 10% unless you have some good proof of a stable and high paycheque in Canada, then you might be able to do it with no money down (NMD disqualifies you from mortgage insurance I believe, in Canada).

Lots of the financial advice people say to wait until you have 25% though.

I disagree with the above poster. '10k' is pretty much meaningless. Banks go by percentages of the total mortgage and percentages of your income. 10K is more than enough for a $40,000 4 bedroom house outside of Red Deer Alberta, but not enough for anything in the Oak Bay neighbourhood of Victoria, BC.

If you're looking into getting a mortgage, also get a book on the Smith Maneuver, research it online, set it up yourself, or get a financial planner to do it for you.

Also, look for a mortgage broker or talk to one to see who can give you the best deals. It is a lot better than just going to one bank. If you can save 1% on your rate, that will mean a lot of money over time.

khyber · Joined: 16 Jan 2003 Location: Compunction Junction

Bryan · Joined: 29 Oct 2007

blaseblasphemener · Posted: Wed Jul 23, 2008 1:40 pm Post subject:

rubric · Joined: 28 Oct 2006 Location: Pongdongfongyong

Having a deposit is one thing but most banks back home will have a problem with giving a mortgage to a worker on a one-year contract. The catch 22 can be that you turn up back home with a good deposit but then need to show gainful employment, which may take some time depending on your circumstances. In the meantime you need to dip into your savings (deposit for house) and after 6 months it doesn't look so healthy any more.

travel zen · Joined: 22 Feb 2005 Location: Good old Toronto, Canada

Houses in Canada? I bought two Very Happy

They (the Bank) wont give you a mortgage if you don't have a job that can support a mortgage, even if you can put 50% down. Sad

They would never give you a martgage for anything less than 25% down unless you have a great job. In Ontario, CMHC might help you financially on your first house with something like 10-20% down but you'll be paying thousands just for that service Sad

I would advise getting a good paying job and a big downpayment...and buying a smaller house to start. You can also have family co-sign the house...this helps with the bank.

Good Luck

mindmetoo · Joined: 02 Feb 2004

I believe the government has recently directed banks to require a 5% minimum. I was surprised this rule ever went away.

Paddycakes · Joined: 05 May 2003 Location: Seoul

Canada recently out-lawed 0 down mortgages, liar loans, 40 year mortgages.

Basically all the B.S. that have caused housing prices to sky-high.

This was done to avoid a US style housing collapse, but it's too late.

The Canadian housing market is generally heading down.

Read this guy:

www.garth.ca

Read his 'greater fool' section.

marlow · Joined: 06 Feb 2005

drkalbi · Joined: 06 Aug 2006

I worked at BMO has a mortgage lender a few years ago. At that time you needed a min. of 5% down. Getting a Mtg a tough. The bank looks at you full financial picture to decide if you qualify or not. Usually they look for a minimum 1 year on the job, clean credit, and the capacity to make the payments.

Newbie · Joined: 07 Feb 2003

That's a pretty broad question considering the size of Canada and the extreme variation in prices from big cities to smaller ones.

Look at Toronto. You buy a 5 bedroom house at the north end of the city for about $700,000. Drive north about 20 minutes and you get a comparable house for about $400,000.

I would definitely NOT listen to the guy who said 10k, unless your looking at Nunavut.

My wife and I are heading to Toronto in the Fall with about 200k. We feel that it is just cutting it.

blaseblasphemener · Posted: Thu Jul 24, 2008 6:39 am Post subject:

DaeguKid · Joined: 09 Dec 2006 Location: Daegu

what about incorporating yourself and purchasing property under a company name?

Anyone here know about that or is doing it now?

I wonder what the rules are on living in the house.
I was thinking of incorporating, buying, renting it out, staying in korea and letting the house pay for itself. Even if i have to pay a couple hundred extra a month, it aint that bad of a deal to own a house.

Anyone?