New to Real Estate · Calgary, Alberta · Member since 2024 · 8 posts · 0 votes
My wife and I are getting close to entering the real estate market as investors, we live in Canada but are planning on entering into the US market. If anyone has any insight or suggestions on whether to obtain lending from Canadian or American Banks it would be greatly appreciated.
My wife and I are getting close to entering the real estate market as investors, we live in Canada but are planning on entering into the US market. If anyone has any insight or suggestions on whether to obtain lending from Canadian or American Banks it would be greatly appreciated.
Also my wife is an American citizen.
You'll need to apply for a mortgage at the bank domiciled in the same country as the property.
A few years ago I purchased a few homes down in Florida. We use RBC as they have a branch down in Georgia for Canadians. That part was actually straightforward to get done. The lending was another story. TD and RBC have good lending programs if you have a very small portfolio in Canada. If you have too many mortgages (that was me).....you will need to go to a hard money loan in the US. Generally you pay a few points more than the ave buyer down there, but you can scale it. You will most likely have an advantage if your Wife is American. I can share my contacts, etc if you are interested. I would be happy to chat to you if you like, reach out anytime.
This is great information, we were looking at RBC initially but heard it would be difficult. Florida has been top of our list to invest in, however with what is happening with HOA fees climbing, insurance increasing and the new legislation for condo taking effect in 2025 we are going to sit back and watch for a bit.
We live in Calgary and have been looking at Arizona and Montana as well, Montana is close for us.
Sharing your contacts would be greatly appreciated.
Does Canada have 30 year fixed rate mortgages? I know that most countries don't. That's a pro for investing in a US property and getting a mortgage in the US.
Does Canada have 30 year fixed rate mortgages? I know that most countries don't. That's a pro for investing in a US property and getting a mortgage in the US.
Does Canada have 30 year fixed rate mortgages? I know that most countries don't. That's a pro for investing in a US property and getting a mortgage in the US.
Does Canada have 30 year fixed rate mortgages? I know that most countries don't. That's a pro for investing in a US property and getting a mortgage in the US.
Canada does have 30 year fixed rate mortgages.
Are you referencing Canadian banks operating in the U.S.? I have never heard of anyone getting a fixed rate for 30 years in Canada. This would be a huge change if true.
Steve makes some great points. I am a lender that works with a lot of Canadian clients investing in the U.S. specifically Florida who are often comparing their Canadian bank with lending options based in the U.S. Foreign nationals can expect an interest rate that's 1-1.5% higher than U.S. citizens so your wife being an American does provide you with an advantage. Hard money loan isn't your only option in the U.S. even as a seasoned investor but to give you specifics I'd need to know a bit more about your portfolio. Feel free to reach out for more info - lending is not as complicated for FNs as it used to be.
Hi Donald, the only difference that we see nowadays for Foreign Nationals in a 30-year, fixed-rate Debt-Service Coverage Ratio Loan (DSCR) is a slight decrease in the Loan-to-Value (LTV) ratio; there is no penalty on rates or points.
Additionally, if your wife is a US Citizen, there shouldn't be a decrease to the maximum LTV, either. Another benefit to using a DSCR loan to your entity is that there is no limit to how many mortgages your entity can rack up, as opposed to an individual (10 mortgages) or a married couple (20 mortgages). I hope this helps! Feel free to reach out if I can answer any other questions!
@Donald Blair unless something has changed, the Canadian mortgages are amortized over 30 years but the rate term is typically about 5 years. It's different in the US where you can lock into to a 30 year term (ie. the rate doesn't changed over the entire life of the mortgage). As of about 5 years ago when I was inquiring, RBC US did provide US mortgages for Canadians however not a 30 year term, only ARM (Adjustable Rate Mortgages) which is a similar mortgage product to what Canadians are used to, difference being after a 5 year term it would flip to an adjustable rate mortgage. Maybe things have changed but it's worth talking to them as well as others like TD who also has a US presence to see what they can provide. Looks like you'll have options going with a US broker/lender as noted from other's comments for a fixed 30 year but the terms may not be as favorable, especially as a foreign investor. But if the numbers make sense, having the peace of mind knowing that you're at a fixed rate over 30 years where rent appreciation is likely and the possibility to refinance if rates drop is a huge advantage. Good luck!
Does Canada have 30 year fixed rate mortgages? I know that most countries don't. That's a pro for investing in a US property and getting a mortgage in the US.
I am totally wrong about the 30 year fixed rate in Canada, lol.
Canada does have 30 year fixed rate mortgages.
Are you referencing Canadian banks operating in the U.S.? I have never heard of anyone getting a fixed rate for 30 years in Canada. This would be a huge change if true.
@Donald Blair unless something has changed, the Canadian mortgages are amortized over 30 years but the rate term is typically about 5 years. It's different in the US where you can lock into to a 30 year term (ie. the rate doesn't changed over the entire life of the mortgage). As of about 5 years ago when I was inquiring, RBC US did provide US mortgages for Canadians however not a 30 year term, only ARM (Adjustable Rate Mortgages) which is a similar mortgage product to what Canadians are used to, difference being after a 5 year term it would flip to an adjustable rate mortgage. Maybe things have changed but it's worth talking to them as well as others like TD who also has a US presence to see what they can provide. Looks like you'll have options going with a US broker/lender as noted from other's comments for a fixed 30 year but the terms may not be as favorable, especially as a foreign investor. But if the numbers make sense, having the peace of mind knowing that you're at a fixed rate over 30 years where rent appreciation is likely and the possibility to refinance if rates drop is a huge advantage. Good luck!