My u.s. son has obtained full time work in Toronto.
And now seeks to purchase a condo there.
I will have to be on the moRtgage with him . What do we need to know?
Can I use my 401 account to help with the purchase ?
What is the minimum downpayment req'd. by Canadian MortgaGE COMPANIES?
Thanks.
Help - with U.S. son buying condo/loft in Toronto
Moderator: Mark T Serbinski CA CPA
Why would he need you to co-sign for the mortgage? The whole idea of a mortgage is that the property itself secures the loan; having other security as collateral is contra-indicated.
Most Cdn institutions (he will have to get a Cdn mortgage) would likely see little value in having you co-sign, as you are 'out-of-reach' of the creditors.
If he is working, he should be able to get a mortgage on his own; the banks will do this based on his income, the property he's buying, and his downpayment. 5% is the standard minimum these days, I believe.
This is not like he is buying a used car.
You may consider lending him some money for the downpayment, but you won't and shouldn't be party to the mortgage.
<i>nelsona non grata... and non pro</i>
Most Cdn institutions (he will have to get a Cdn mortgage) would likely see little value in having you co-sign, as you are 'out-of-reach' of the creditors.
If he is working, he should be able to get a mortgage on his own; the banks will do this based on his income, the property he's buying, and his downpayment. 5% is the standard minimum these days, I believe.
This is not like he is buying a used car.
You may consider lending him some money for the downpayment, but you won't and shouldn't be party to the mortgage.
<i>nelsona non grata... and non pro</i>
You cannot use your 401k to help with the mortgage downpayment without taking an early withdrawal penalty. If you had a Canadian RRSP and you were buying the home for yourself and it was your first home, you could use your RRSP with the downpayment I believe, but your 401k won't help with this purchase.
Downpayments less than 25% are high ratio mortgages and must be insured. You can get a mortgage with as little as 5% down, but it varies between firms.
Your son can go to his bank and seek a pre-approval certificate which will help him understand what he can borrow.
Downpayments less than 25% are high ratio mortgages and must be insured. You can get a mortgage with as little as 5% down, but it varies between firms.
Your son can go to his bank and seek a pre-approval certificate which will help him understand what he can borrow.