Canadian Lender Finder?

Question

Is there a lender finder for Canadians? I'm in a number of social groups for private lenders and have run into a lot of scams. If anyone has any recommendations on networks or networking tools, it would be greatly appreciated.

Theresa Harris · Answer

I'd look for mortgage brokers in Canada.  If you're working with a realtor, they should be able to suggest a few. Otherwise, talk to your bank or credit union. I usually use my bank (CIBC).

Jason Munns · Answer

If it were that easy I would have moved 8 years ago. Unfortunately a lot of us are more or less stuck here.

Right now we're shopping around for loans outside of traditional lenders.

Noah Wright · Answer

Have you considered joining America? Jokes aside, RBC is usually a solid first choice.

Hai Loc · Answer

Why don't you try the bank you do banking with..  RBC CIBC.. love them.. RBC has commercial division and US..  if you still have struggles DM me

Ko Kashiwagi · Answer

Are you looking to buy in Canada? Or in the US? If it's in the US, there are foreign national programs. Each programs have different requirements so it'll be important to check.

Brittany Minocchi · Answer

If you're planning to buy in the US, there are programs for those that aren't US citizens. If you have scorable US credit, you'll get better terms. If you don't have a US-based bank account, I would get one as that's a requirement by most lenders. Finally, be prepared to need a 30-35% down payment. Feel free to reach out if you have any other questions!

Stacy Raskin · Answer

@Jason Munns, are you looking to buy investment properties in the U.S. or Canada?

If looking to buy in the U.S, there are foreign national DSCR loans for 1-4 units. I've seen programs that go down to a $100,000 USD loan amount for foreign national DSCR loans. Generally, there are some programs for foreign nationals that are 25% for a single family rental and 30% for a 2-4 unit.

More on DSCR loans: DSCR loans won't use your income to underwrite the loan.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth. Here's a bit more in detail about how rates are calculated for DSCR loans:1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on. For some foreign national programs, a credit score is assigned.

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs. I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23

If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable). If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Happy to connect to discuss further.

Canadian Lender Finder?

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