American Mortgages For Canadian Residents: Documentation
by: Brian.Brady on November 17, 2007 18:24:20 3 comments »
Canadians are looking to buy American real estate. The loonie is at parity with the dollar and American housing prices are down some 20% from 2005. That presents quite a bargain if a Canadian is looking for a vacation home in America. We've talked to over ten Canadians in the past week; most are interested in the Sun Belt (Arizona, California, Florida).
How does a Canadian get a mortgage for American properties? Here is an example of the documentation American lenders look for when lending to Canadian citizens:
1- Identity Proof: Some lenders require a copy of your Canadian passport- many accept a Canadian driver's license.
2- Proof of Employment or Business Ownership: Most lenders seek a two year history. We perform a verification of employment with your employer or look for a copy of your business registration or incorporation paperwork.
3- The very best terms are extended to Canadians who can document income by furnishing a two year history of the T-1 General Form.
4- Assets need to be documented by a recent bank statement.
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· http://www.CentralDenverBlog.comIt will be interesting if the dollar continues to fall to see how much of an increase there will be with foreign investors looking to purchase investment or vacation properties. I guess I won't be buying my villa in the south of France anytime soon.
Permalink November 21, 2007 19:40:44 · http://www.WeAreAZRealEstate.comBrian,
This may be a loaded question since it is your business to make loans, but what advantage is there to Candadian buyers getting a loan in the US vs. restructuring their finances in Canada to pay cash? I find that most are doing the latter. If you have some advantages, I would like to pass it along to clients.
Permalink November 28, 2007 13:56:22 If we believe the premise that the Canadian dollar will weaken against the dollar, which I do believe, the advantage would be to borrow in loonies and buy in dollars.
Borrowing the money in Canadian money (worth less laster) to buy an American asset (worth more later) is the PERFECT play.
If they don't have the ability to do that, I have solutions.
Permalink November 29, 2007 05:57:17This post has 29 feedbacks awaiting moderation...