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Mortgages For Canadian Citizens

by Justin McHood on February 14, 2011

One of the more popular retirement plans for many people who live in Canada is to buy a winter home in one of the “sand states” like Florida, Nevada, Arizona or California.  As a result of the real estate crash, many of of the locations in these states have seen property values decline by as much as 60% from what they were just a few years ago – and as a result it becomes even more attractive for Canadian citizens to look at buying a winter home somewhere warm.

But can Canadian citizens get a mortgage here in the US when buying a home?

Yes.

But it isn’t as easy as you might think.

Generally speaking, if you are a Canadian citizen who is interested in purchasing a second home in the US, you will need to do a little bit of digging to actually find a lender who will lend to Canadian citizens.  Many lenders will not, but a small handful will. The best way to find a lender who will lend to a Canadian citizen when buying a property in the US is to ask the Realtor you are working with.

From time to time, banks will offer loans to Canadian citizens and then stop for whatever reason – so the list of available lenders tends to change frequently.

Generally speaking however, here are some general guidelines that you can expect from a lender when borrowing money for a US property:

Mortgages For Canadian Citizens: Guidelines

  • Must be a second home
  • Will loan up to 75% loan-to-value
  • International credit report required
  • Verification of mortgage on primary residence
  • Last 2 pay stubs and 2 years of T4′s required
  • 2 months bank statements
  • Drivers license and copy of passport
  • If self employed, last two years of Canadian tax returns along with a profit/loss statement and balance sheet.

Each lender will have their own guidelines, but generally speaking – the above list is what you can generally expect.  As with other loan programs, these loans can dissappear at any time, so if you are in the market for a second home in a warmer climate and are a Canadian citizen, be sure to act fast – or risk being stuck out in the cold.

Justin McHood

Justin McHood is a Mortgage Commentator living in the Phoenix, Arizona area and is happy to answer any mortgage-related questions that you may have.
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