Investor · Vancouver · Member since 2017 · 44 posts · 9 votes
How difficult is it as a Canadian to get a mortgage in the USA? What makes it extra difficult for me already as a Canadian, is that I am also self employed, and lending for me has been particularly difficult.
As well, would it make it easier to get a mortgage in the USA if I put down a larger down payment like 30-50%?
Finally any bank recommendations? I hear that TD has now cross border banking since they are on both sides of the border.
Rental Property Investor · Toronto ON, Canada · Member since 2015 · 58 posts · 11 votes
8y
Jessey, my husband is Canadian, and we work in Silicon Valley.
We don't have problems to finance our home in California, we use our W-2 income in US and we use US bank. Are you considering buying a home in US and using income from Canada? What banks have you tried and did they imply any reasons?
For us, the difficulty is the other way around. In the past 2 years, it's difficult for us to finance or re-finance our investment properties in Canada, they don't consider our US income. But it just changed, we were able to refinance one of our property recently, with good mortgage term.
When I saw your post, I thought you were replying the post I published before asking the same question, haha.
How difficult is it as a Canadian to get a mortgage in the USA? What makes it extra difficult for me already as a Canadian, is that I am also self employed, and lending for me has been particularly difficult.
As well, would it make it easier to get a mortgage in the USA if I put down a larger down payment like 30-50%?
Finally any bank recommendations? I hear that TD has now cross border banking since they are on both sides of the border.
Investor · Vancouver · Member since 2017 · 44 posts · 9 votes
8y
@Minna Hu - that's very interesting that you are having the reverse situation. i have yet to try, but will be speaking with TD Bank since they have cross border banking. I wonder if the situation is eaier for you guys because your source of income is in the US and you have residence there?
Lender · Powell, OH · Member since 2016 · 97 posts · 64 votes
8y
Government backed mortgage loans need income filed on US tax returns, permanent residency or long term Visas (L1, H1-B...), and a permanent US address.
I don't know where you would go offhand, but you can certainly find someone willing to lend to you if you are willing to put down such a large down payment. Those lenders won't be concerned about lending anyone money secured by habitable real estate at 50% LTV. You should call some portfolio and hard money lenders.
Vancouver · Member since 2018 · 24 posts · 9 votes
8y
I have done some research here as i intended on getting my first rental in arizona. I have family that own a number of properties down there, that are Canadian-citizens only (as am I). They bought foreclosed units for cash - a no-brainer when it happens (other than the guts it takes to pull the trigger)...
Through my own research you (us canadians) are looking at 7.5-9% interest (on USD funds i might add...making it even worse for ROI), for a mortgage. My own intuition talked me out of this and I have instead hunted across Canada to just find units 'locally' that are on the cheaper side and will cash flow accordingly. Successful in my hunt now, it seems, just finding the right unit for me in the city of Edmonton - many opportunities lie in this city.
Vancouver, BC · Member since 2016 · 20 posts · 4 votes
8y
What's the cap rate like in Edmonton? Does it meet the 1% rule? I am in Vancouver, and have some capital on hand to find my next one. Same as you that I am looking on the Canadian side due to the financing structure... However, US's infrastructure is great as they have zillow and etc...
I have done some research here as i intended on getting my first rental in arizona. I have family that own a number of properties down there, that are Canadian-citizens only (as am I). They bought foreclosed units for cash - a no-brainer when it happens (other than the guts it takes to pull the trigger)...
Through my own research you (us canadians) are looking at 7.5-9% interest (on USD funds i might add...making it even worse for ROI), for a mortgage. My own intuition talked me out of this and I have instead hunted across Canada to just find units 'locally' that are on the cheaper side and will cash flow accordingly. Successful in my hunt now, it seems, just finding the right unit for me in the city of Edmonton - many opportunities lie in this city.
What's the cap rate like in Edmonton? Does it meet the 1% rule? I am in Vancouver, and have some capital on hand to find my next one. Same as you that I am looking on the Canadian side due to the financing structure... However, US's infrastructure is great as they have zillow and etc...
I have done some research here as i intended on getting my first rental in arizona. I have family that own a number of properties down there, that are Canadian-citizens only (as am I). They bought foreclosed units for cash - a no-brainer when it happens (other than the guts it takes to pull the trigger)...
Through my own research you (us canadians) are looking at 7.5-9% interest (on USD funds i might add...making it even worse for ROI), for a mortgage. My own intuition talked me out of this and I have instead hunted across Canada to just find units 'locally' that are on the cheaper side and will cash flow accordingly. Successful in my hunt now, it seems, just finding the right unit for me in the city of Edmonton - many opportunities lie in this city.
Cap rate depends on area and willingness to get your hands dirty. I have the equivalent of 2 full time jobs so really don't need any more headaches and went for the more hands-off option. Sent you a private message with more details.