The Prohibition on the Purchase of Residential Property by Non-Canadians Act, commonly known as the Foreign Buyer Ban, came into effect on January 1, 2023. With the final details and regulations unfolding just days before the new year, many temporary residents found themselves scrambling over the holidays, wondering how the new legislation affects them. Since then, there have been some notable revisions. The most striking changes were exemptions for work and study permit holders:

Exemptions for Work Permit Holders

Temporary residents working in Canada are exempt if they:

• Hold a valid work permit or are authorized to work in Canada.
• Have 183 days or more of validity remaining on their work permit or work authorization at the time of purchase.
• Have not previously purchased a residential property in Canada while the prohibition was in effect.

Exemptions for Study Permit Holders

Temporary residents studying in Canada are exempt if they:

• Are enrolled in a program of authorized study at a designated learning institution as defined in the Immigration and Refugee Protection Regulations.
• Have filed income tax returns for each of the five taxation years preceding the year in which the purchase was made.
• Have been physically present in Canada for a minimum of 244 days in each of the five calendar years preceding the year in which the purchase was made.
• Have not previously purchased a residential property in Canada while the prohibition is in effect.
• Purchase a property for a price not exceeding $500,000.

Other Key Points and Notable Exemptions

• The Act came into force on January 1, 2023, and will remain in effect for two years.
• The Act does not apply to non-Canadians who entered into binding offers of purchase and sale before January 1, 2023, even if the sale is finalized during the prohibition period.
• The Act also applies to corporations and entities formed under Canadian laws, not listed on a Canadian stock exchange, and controlled by non-Canadians.
• The Act does not apply to non-Canadian spouses and common-law partners if they purchase residential property in Canada with their Canadian citizen spouse, person registered under the Indian Act, permanent resident, or non-Canadian for whom prohibition does not apply.

Situations Where the Act Doesn’t Apply

• When a non-Canadian acquires an interest in a residential property due to a divorce, separation, gift, or death.
• When a non-Canadian rents a dwelling unit for the purpose of occupying it.
• When a non-Canadian purchases residential property for development purposes.
• When a creditor exercises a security interest or secured right, such as the seizure and foreclosure of a residential property.

Important Note for Permanent Residents

Permanent residents are NOT affected by the Foreign Buyer Tax and the Foreign Buyer Ban.

Get Free Advice from Olea Financial

Navigating the complexities of the Foreign Buyer Ban can be challenging, especially for newcomers to Canada. At Olea Financial, we specialize in providing tailored advice to help you understand your options and make informed decisions about your real estate investments. Our team is here to assist you with:

• Understanding the exemptions and revisions of the Foreign Buyer Ban.
• Exploring new to Canada home buying programs.
• Finding the best financial solutions to support your home purchase.

Contact Olea Financial Today

Take advantage of our free consultation services to get personalized advice on the new to Canada home buying programs available. Connect with Olea Financial for expert guidance and support.

Contact Us:

• Phone: 416.994.1146
• Email: [email protected]
• Website: www.oleafinancial.com

Book your free consultation today and let Olea Financial help you navigate your journey to homeownership in Canada.

Are you gearing up to embark on the exciting journey of home ownership? 

Securing a mortgage is a significant step, and being well-prepared can make all the difference. To help you navigate this process smoothly, here are five things you should avoid when preparing for a mortgage approval.

1. Neglecting Your Credit Score

Your credit score is a key factor in mortgage approval. Don't overlook it! Regularly check your credit report for inaccuracies and work on improving your score if needed. Remember, a better credit score can lead to more favorable mortgage terms.

2. Skipping Pre-Approval

Don't underestimate the power of pre-approval. Take the time to go through this process — it not only provides clarity on your budget but also makes you a more attractive buyer to sellers. Knowing your purchasing power can streamline your house-hunting journey.

3. Making Employment Changes

Lenders value stability. Try to avoid making significant employment changes before applying for a mortgage. Whether it's switching jobs or venturing into self-employment, these changes can complicate the approval process. Stability is key in the eyes of lenders.

4. Making Large Purchases Before Closing

Big-ticket purchases before closing the deal on your mortgage might impact your debt-to-income ratio. To ensure a smooth approval process, hold off on significant expenditures until after you've secured your mortgage.

5. Forgetting Additional Costs

It's not just about the mortgage amount. Consider all the associated costs like property taxes, insurance, and maintenance. Being aware of the full financial picture ensures you're well-prepared for home ownership.

Now that you're armed with these essential tips, it's time to take the next step in your financial journey. For comprehensive support and planning to maximize your financial success, consider reaching out to Olea Financial. Our experienced team can guide you through the intricacies of the mortgage process, offering personalized solutions tailored to your needs.

Contact Olea Financial today to embark on your path to home ownership with confidence. Your dream home awaits, and we're here to help you make it a reality.

Contact Olea Financial | Your Partner in Financial Success

If you’re a newcomer to Canada, understanding the importance of a credit score might be new to you. However, it’s a vital factor that can influence your financial well-being, job prospects, and housing options. In this guide, we’ll explore the world of credit histories, how credit scores function, and how you can establish and maintain a solid credit score to help you achieve your financial goals with Olea Financial as your ideal partner.

Understanding Your Credit Score

Your credit score is a three-digit number calculated by credit bureaus, reflecting your past credit management. The higher the number, the better your credit score, and it holds significant sway over various aspects of your life. Banks, financial institutions, employers, and landlords may request a credit check before lending to you, hiring you, or renting to you. A high credit score can also facilitate obtaining personal loans, lines of credit, credit cards, or mortgages, often with more favorable terms such as lower interest rates.

However, for newcomers, there’s a unique challenge. Canadian credit scores often don’t incorporate credit history from other countries.

Building a Strong Credit History in Canada with Olea Financial

As a newcomer, you’ll be starting from scratch in building your Canadian credit history. Here’s how you can get started:

1. Get a social insurance number (SIN): A Social Insurance Number (SIN) is a crucial identifier required for work in Canada and accessing government programs. It’s also essential for opening various types of bank accounts.

2. Open a Canadian bank account: Opening a Canadian bank account provides secure and convenient access to your funds. Depending on your bank’s services, they may report your activity to credit bureaus, which is beneficial for building a credit score.

3. Choose and use a credit card: Responsibly using a credit card is one of the quickest ways to build your credit score. Although as a newcomer, obtaining a traditional credit card might be challenging, there are specialized cards designed for newcomers.

Olea Financial can assist you in selecting the right credit card for your needs, helping you manage your finances effectively.

4. Get a prepaid cell phone plan: Cell Phone companies report to credit bureaus, and paying your cell phone bill on time helps build a positive credit history. As a newcomer without an established credit score, starting with a prepaid cell phone plan is an excellent step towards enhancing your creditworthiness.

5. Keep your borrowing under control: Credit bureaus monitor your “credit utilization ratio,” which assesses your debt relative to your available credit. Aim to keep your debt below 30% of your credit limit to maintain a good credit standing.

6. Monitor your score: Credit scores fluctuate, so it’s essential to stay updated. You can review your credit report directly through credit bureaus like Equifax or TransUnion. Alternatively, check if you have free access to your credit score through services like your financial institution’s online banking portal. Be vigilant about identifying and reporting any errors to the credit bureau.

7. Be proactive: If your credit score dips, it can improve over time with consistent good financial habits. Ensure you pay your monthly bills promptly and try to pay them in full. Reducing existing debt to lower your credit utilization ratio and limiting credit applications for new cards or loans are proactive steps to maintain a healthy credit profile.

Contact Olea Financial for a Free Credit Analysis

To kickstart your journey to a strong credit history in Canada, contact Olea Financial for a free credit analysis. Our team of experts can guide you through the process, recommend suitable financial products, and assist you in achieving your financial goals. Don’t miss this opportunity to secure your financial prosperity in Canada. 

Contact us today!

In today's increasingly stringent lending landscape, homeowners are finding themselves drawn to the private mortgage market. As this trend gains momentum, brokers emphasize the importance of having a well-thought-out exit strategy in place. Without one, homeowners risk getting caught in a financial web that may ultimately lead to a 'For Sale' sign adorning their front lawns.

To navigate this intricate landscape and secure their financial future, consumers should consider connecting with Olea Financial, their ideal partner for mortgage analysis and planning. By reaching out to Olea Financial, homeowners can gain insights into their options and devise a sound strategy. In fact, Olea Financial offers a free mortgage analysis to empower homeowners in making informed decisions.

Private mortgages, often seen as a lender of last resort, provide a short-term solution (typically one year) based on a property's value and equity. These loans are funded by affluent individuals or groups of investors, distinguishing them from traditional financial institutions. While they serve as a lifeline for those with low credit scores or who fail to meet standard lending requirements, it's important to note that private mortgage fees and interest rates are significantly higher compared to banks or credit unions.

Interest rates on private mortgages can vary widely, ranging from 10 to 18 percent, depending on factors like property value and borrower credit risk. Typically, monthly payments for private mortgages consist of interest only.

The crux of the matter lies in devising a robust exit strategy for transitioning from private lending to a traditional lender. This strategy might involve refinancing, utilizing available funds to reduce the loan, or selling the property altogether. When an exit strategy is rooted in a specific goal, it can serve as a valuable interim measure.

However, homeowners should exercise caution when using private mortgages to maintain ownership of a property that's financially burdensome. Negatively impacting cash flow constantly can erode equity, which is a risk many homeowners fail to recognize.

The private lending market has witnessed substantial growth in recent years, driven by soaring home prices and increasing borrowing costs. Data from the Financial Services Regulatory Authority of Ontario reveals that private mortgages constituted 11.7 percent of all brokered mortgages in the province last year, up from 8.4 percent in 2014. The total value of private mortgages in Ontario in the same period reached $25.9 billion, more than doubling from $9.1 billion in 2014.

For many prospective homebuyers, private lenders often appear to be the only viable option for stepping onto the property ladder. However, for those who lack a solid exit strategy, renewing their private mortgage with higher monthly payments can pose significant challenges and limit their ability to explore other financing options. It may necessitate tough conversations about selling their homes and downsizing.

Homeowners who currently hold private mortgages should revisit their initial reasons for obtaining the loan, assess the feasibility of their exit strategy, and determine whether it remains viable. If circumstances have changed, or if homeowners are uncertain about their financial position, they are strongly encouraged to seek the expertise of a mortgage professional.

In summary, it is crucial to have a well-defined plan in place to navigate the private mortgage market successfully. For personalized mortgage analysis and planning assistance, consumers are encouraged to contact Olea Financial today. Take the first step towards securing your financial future by reaching out for a free mortgage analysis that can help you make informed decisions and safeguard your home investment. Don't wait until it's too late – act now to protect your financial well-being.