There are a few common misconceptions among borrowers regarding if lenders are willing to finance mortgages in different provinces when you are moving to a whole new city.
This is something that Dave Browne and Browne Mortgages are eager to explain and help with. Currently, there is increasing interest by borrowers to sell their homes at peak market values in British Columbia and buy for substantially lower prices in other provinces while making wages that are relatively better! For this reason, we are receiving a lot of mortgage applications for properties in different provinces, most notably in Alberta.
The most common challenge is requalifying the borrowers under the employment and income guidelines for traditional banks.
“Borrowers often assume that their current mortgages can be simply ported to a new province without requalification. Though a port is an excellent way to preserve your current interest rate; the bank still requires you to provide proof of employment and a current pay stub in most cases. This can be a challenge if you don’t start your job until you move to your new home” — Dave Browne
As housing affordability continues to erode in BC with rising interest rates and increasingly expensive homes; people are moving further away from city centres and urban areas in BC and looking for opportunities in other provinces. This has allowed many to find similar paying jobs and cash in on some of the equity they have earned in larger city centre homes.
“A borrower has to make sure they pre-negotiate with their lender regarding their job situation and potential lack of current pay stub, this is something which we at Browne Mortgages have multiple lenders now agreeing to do. Of course, this is case by case. Sometimes jobs don’t start until after you have bought the home. We definitely bring to the table many lenders with multiple solutions that your traditional bank may not be able to do. If your traditional lender says no due to your moving provinces, don’t assume the move is impossible. We will always do absolutely everything we can to help you.” — Dave Browne
In fact, some lenders will allow you to bridge a mortgage and buy a home ahead of time; even before your home has sold in BC. The potential exists for any borrower in BC to look at a life-changing financial move out of the province if they desire. But, Dave says, the most important thing is to make sure that your financing is in place because, with historic low unemployment rates, jobs are rather easy to find. If you would like to create a plan or discuss this on an individual basis, don’t hesitate to call us.
