Buying home in Ireland and living abroad

jiminho

Hey folks,

I'm currently living in Canada rite now with my wife and we will be purchasing a property in the near future. Initially I would have liked to have bought a home here in Canada, but thinking long term, we thought it wise to buy back home in Ireland and rent it out in the mean time.

My question is does anyone have any experience doing this? Some queries include: did you take out a mortgage from an Irish bank or a bank abroad? (A Canadian bank actually might be easier for us), what type of property did you buy, house or apartment? etc

All comments are appreciated.

Many thanks

Marcusm

It will be impossible to get a Canadian bank to advance a loan secured on Irish property as they don't have the infrastructure in Ireland for it. If the loan was small in comparison to your earnings, you might get an unsecured loan. Irish banks will apply more stringent criteria to a non resident (even a temporary one) seeking to buy Irish property (I'm in this position) and will insist on a very high deposit (eg 50%). They need to do this as it's impractical for them to base it on your foreign earning power.

jiminho

So what are your suggestions? You say your in the same position as myself but do you know for a fact that a Canadian bank won't give me a mortgage for a house abroad? The banks seem to be very eager to give me (and everyone who lives here) a mortgage. Thanks for the reply

Marcusm

jiminho wrote: »

So what are your suggestions? You say your in the same position as myself but do you know for a fact that a Canadian bank won't give me a mortgage for a house abroad? The banks seem to be very eager to give me (and everyone who lives here) a mortgage. Thanks for the reply

I'm in the position of seeking to buy but not looking to fund it, so my position is not the same. I strongly believe that you will not get a positive response from your local Canadian bank to a request for a mortgage on an Irish property as the only security. None of the major Canadian banks provide retail banking in Ireland so are not set up to have approved values, conduct security or compliance review or seek to take possession of the property in default. All this means that the underlying value of the Irish property is not valuable to them. Absolutely they are in the mortgage business but for properties in Canada and other territories which they have chosen. If you a high net worth customer, you may have other assets to offer as security.

From the perspective of an Irish bank, while you are employed and have an income, they are not set up, should you default on a payment, to chase you in Canada hence why they need to be conservative in what they would lend you against an Irish investment or holiday property.

In the heel of the hunt, it's hard to buy outside the country where you live and earn income.

jiminho

Marcusm wrote: »

I'm in the position of seeking to buy but not looking to fund it, so my position is not the same. I strongly believe that you will not get a positive response from your local Canadian bank to a request for a mortgage on an Irish property as the only security. None of the major Canadian banks provide retail banking in Ireland so are not set up to have approved values, conduct security or compliance review or seek to take possession of the property in default. All this means that the underlying value of the Irish property is not valuable to them. Absolutely they are in the mortgage business but for properties in Canada and other territories which they have chosen. If you a high net worth customer, you may have other assets to offer as security.

From the perspective of an Irish bank, while you are employed and have an income, they are not set up, should you default on a payment, to chase you in Canada hence why they need to be conservative in what they would lend you against an Irish investment or holiday property.

In the heel of the hunt, it's hard to buy outside the country where you live and earn income.

Well thanks anyway. I'm sure someone has done what i'm attempting to do, especially with the droves of people who have left the last few years.

yoloc

jiminho wrote: »

So what are your suggestions? You say your in the same position as myself but do you know for a fact that a Canadian bank won't give me a mortgage for a house abroad? The banks seem to be very eager to give me (and everyone who lives here) a mortgage. Thanks for the reply

I can see canada going pear shaped like us here in the EU. I know people who are working in construction who are now buying up 2nd and 3rd homes with mortgages but ive been telling them to slow down because of what happened here but theres no talking to them i guess. IMO, they will be telling me one day that they should have took my advice because IMO, in construction work, its either a feast or a famine

anto9

Better to buy in Canada where you can manage the property yourself IMO .

Trish56

jiminho wrote: »

Hey folks,

I'm currently living in Canada rite now with my wife and we will be purchasing a property in the near future. Initially I would have liked to have bought a home here in Canada, but thinking long term, we thought it wise to buy back home in Ireland and rent it out in the mean time.

My question is does anyone have any experience doing this? Some queries include: did you take out a mortgage from an Irish bank or a bank abroad? (A Canadian bank actually might be easier for us), what type of property did you buy, house or apartment? etc

All comments are appreciated.

Many thanks

Hi Jiminho
I don't think you can get a mortgage from a bank in Canada to purchase a property in Ireland, I'm sure they are offering you a mortgage to purchase a Canadian property. You can however apply for a mortgage in Ireland as a non-resident. You should be able to borrow up to 75% of the purchase price and will be charged Investment rates approx. 5.50% variable. Let me know if you need any further information.
Trish56

jiminho

Trish56 wrote: »

Hi Jiminho
I don't think you can get a mortgage from a bank in Canada to purchase a property in Ireland, I'm sure they are offering you a mortgage to purchase a Canadian property. You can however apply for a mortgage in Ireland as a non-resident. You should be able to borrow up to 75% of the purchase price and will be charged Investment rates approx. 5.50% variable. Let me know if you need any further information.
Trish56

Thanks Trish for your response. So had a chat with a mortgage broker and they don't in fact issue mortgages for houses abroad. They said they would give me a mortgage for an international property but "international" means only within North America....weird :? They offered me a 5 interest term mortgage at 3.5% for any Canadian property which is pretty good but again, if I'm planning to leave within 3 years is it worth it?

But thank you that. 5.5% is quite high, at least compared to a Canadian mortgage and I'd need 25% down!!! Well that's money i do not have rite now.

Anyone else in a position like me?