UK Mortgages for Expats & Foreign Nationals Living in Canada
There are many great reasons why someone who has moved to Canada might decide to purchase a property back home. These include the potential to make a big profit as well as the chance to add to a growing portfolio of properties. However, many people find themselves wondering if it’s possible to get a mortgage on a UK property from Canada and how easy the process is.
It’s simpler than many people think to get UK expat mortgages in Canada. Read on to find out more about the benefits of Canada UK expat mortgages and what you can do if you’re interested in getting one.
Funding UK Property for British Expats in Canada
Getting a UK expat mortgage after you’ve moved to Canada can serve you well in many ways. There are many special mortgage products that have been specifically designed for people who have relocated to Canada but want to buy property back home. Here are some of the many fantastic benefits.
Buying UK Property from Canada to Return to, Let Out or Both
Some people purchase UK property from Canada because they plan to return to the UK at some point and want somewhere to live once they’ve made the move. They could let out the property to tenants in the meantime for an extra income stream, and its value may grow substantially after they’ve completed the purchase.
If you buy now, you could avoid paying a higher price for a UK property in a great location in the future. You could also make a substantial profit if you do decide to sell the property at some point.
Is It Better to Approach A UK Lender When Buying from Canada?
If you are a UK national and have moved to Canada, it could be much easier for you to get the funds you need from a lender based in the UK. Getting finance from a Canadian bank for this purpose can be tough, but there are many UK lenders on the market that specialise in helping people buy property here after they’ve moved to Canada.
Keeping a Strong UK Presence
Another great reason for buying a UK property in Canada is that it can help you maintain a financial and legal presence in the country. This can be advantageous for many several reasons, including the way it helps you maintain a UK credit history so you can continue using the services of lenders in the country.
Will Buying Now Make Things Easier if I Want to Return to the UK in Future?
Yes, buying a UK property from Canada now can be very helpful if you’re considering returning to the country at some point. Buying whilst you’re making a living in Canada can be much easier than attempting to get a mortgage whilst you’re trying to find a job and regular income once you’re back in the UK.
Who Can Help When I Want a UK Expat Mortgage in Canada?
We have a great deal of experience in helping UK expats in Canada to secure mortgages successfully. Our mortgage experts have the influence, connections and expertise needed to help you get the best possible rates and terms. We can help you find exceptional bespoke UK expat mortgage products that are tailored towards your specific needs.
Will I be eligible for an expat mortgage in Canada?
You will have to meet certain criteria to be eligible for a United Kingdom expat mortgage. You’ll need to be self-employed or salaried. If you’re self-employed, you’ll need to show up to two years of accounts, and if you’re salaried you’ll have to show that you have stable employment and a steady income stream.
Do I need to earn in a specific currency?
You may be eligible for a Canadian UK expat mortgage regardless of where you earn your money. You can even earn in a mix of currencies.
How big does my deposit need to be?
You’ll normally need to raise a deposit of around 25 – 40% of your deposit value. The bigger your deposit, the better the interest rates and mortgage terms are likely to be.
Can I Remortgage A UK Property in Canada?
Yes, remortgaging a UK property from Canada is perfectly possible and can help you get better terms and rates. It can also help you release equity that you can use for other properties and investments. We have a great deal of experience in this area, so get in touch today if you are interested in remortgaging a UK property.
What Kinds of Problems Do People Face When They Want to Buy UK Property from Canada?
Some people have faced challenges when buying UK property from Canada. These can include the inevitable currency fluctuations, difficulties with accessing mainstream lenders back home, a lack of lending options and issues with verifying their income.
We can help you overcome all these challenges so you can acquire the UK property that you’re looking for even if you’re based thousands of miles away.
Tax Considerations of a UK Mortgage When Living in Canada
It’s critical to comprehend the cross-border tax ramifications if you have a UK mortgage and are a UK expat or foreign national living in Canada. Your property income or capital gains may be subject to claims from both Canadian and UK tax authorities, so careful planning is necessary to prevent double taxation or unforeseen liabilities.
Generally, you must use the UK Self Assessment system to pay UK income tax on any rental income if you own a UK rental property while living in Canada. Generally, you can lower your UK tax bill by deducting allowable expenses like maintenance costs, mortgage interest and letting agent fees.
You must include all of your worldwide income, including rental income from the UK, on your Canadian tax return since you are regarded as a Canadian tax resident. Nonetheless, the UK-Canada Double Taxation Agreement aids in avoiding double taxation on the same income. Taxes paid in the UK are typically deducted from your Canadian tax obligation on the same income.
Depending on whether the property is kept for personal use or is used to generate rental income, Canada may treat UK mortgage interest differently when it comes to taxes. Particularly for non-rental properties, Canadian authorities might not permit the same amount of interest deductions as those in the UK.
You might be liable for Capital Gains Tax (CGT) in the UK if you sell your property there for a profit. Unless specific exemptions apply, such as the principal residence exemption under Canadian tax laws, Canada may also tax that gain.
It is highly advised to speak with a tax advisor who specialises in UK–Canadian cross-border taxation due to the intricacy of UK–Canada tax coordination, particularly when handling rental income or property sales.
Buying UK Property from Canada: How We Can Make It Happen
Expat Mortgages UK will make your UK property dreams coming true by connecting you with special mortgage lenders whose services are designed to help people like you. We will tailor our support towards your specific situation and will contact you personally whenever we have news to pass onto you.
You’ll have a dedicated case manager as well as access to an online portal that lets you supply documents and get a simpler overview of your case around the clock.
I Want to Go Ahead and Apply for a Canadian UK Expat Mortgage: What’s The Next Step?
If you have decided to apply for an expat mortgage UK for a Canadian resident, we are ready to hear from you. Get in touch today to arrange your free consultation and advice.
During your consultation, we’ll look at your affordability and eligibility to identify what your mortgage options are. We’ll help you collect all the paperwork you need to make your application as strong as possible.
If you’re in a strong position to go ahead, we’ll tell you about the lenders and products we’ve found and provide impartial advice so you can choose the best option for you. We can submit the application on your behalf and also help you arrange a solicitor, a valuation and insurance.
Once you get your mortgage offer, we’ll explain everything to you clearly before we negotiate and work with all relevant parties to complete the purchase and transfer the property title to you.
You don’t need to set foot back in the UK to complete the deal – we can look after everything from beginning to end, working with your lender and solicitor on your behalf so you barely need to lift a finger. Although the length of the process can vary, we aim to get everything completed within typically around four to twelve weeks.
Interested in finding out monthly mortgage costs and deposit needed? Try our Expat Mortgage Calculator UK today.
Make Your Expat Mortgage UK from Canada a Reality with Us
We are waiting to hear from you right now if you’re looking for a UK mortgage for a British expat living in Canada and are seeking the best possible deal for your needs. We have vast experience in this area and are ready to use it to bring your UK expat property dream to life. When it comes to financing investment property for UK expats living in Canada, we lead the way!
Why not get in touch right now?
UK Expat Guide to Living in Canada: Best Cities, Regions & Property Hotspots
If safe and friendly environments, breathtaking landscapes and a relaxed way of life, appeal to you, Canada could be a great option if you’ve been thinking about relocating from the UK. The country is famous for its epic outdoor scenery, exciting cities and great mix of job opportunities. It doesn’t take UK expats in Canada long to feel at home.
Toronto is the largest city in Canada and offers lots of jobs in finance and culture, to give just a few examples. Vancouver is another fantastic option and is famous for laidback coastal living, spectacular mountain views and its mild climate.
Montreal is another premium Canadian city that’s synonymous with a thriving arts scene, making it great for creative types. It’s also more affordable than many people expect. The capital of Canada is called Ottawa and offers tremendous public services and job opportunities.
Calgary and Edmonton are ideal for people seeking somewhere with a strong economy, with lots of jobs in energy and tech on offer. These cities also give you easy access to the iconic Canadian Rockies. Halifax is another good option renowned for its affordability and fantastic coastal scenes.
People are drawn to Canada due to its world-class healthcare, education and properties as well as the warm welcome it offers to expats.
Start Your UK Mortgage Journey from Canada Today!
Don’t let distance stop you. As specialists in UK mortgages for Canadian Expats, our team will secure your financing and make the whole process smooth and stress-free. Start your free consultation today.