Non-resident investing in Canadian property

5 Replies

Hi. I am a Canadian citizen but have been non-resident in Canada for the past 7 years. Currently exploring options to refinance and draw equity out of our property in Halifax, NS to finance additional multi-family property purchases. Keen to connect with other non-resident investors to share ideas and experiences.

@Charla Telford In my experience, even though you are a Canadian citizen, they will still treat you like a foreign national. This is due to the fact you have been out of the country 7 years and do not have any recent credit here.

@Charla Telford Welcome to BP. A Canadian working overseas could qualify for a (purchase) mortgage under the Non-resident (NR) mortgage program - the lending guidelines vary from lender to lender. Max. LTV 80% for the NR living in the USA and 65% LTV for other countries. So few 'A' lenders will approve a NR for a refinance / take-out equity for a subject rental and only when a key criterion is met.

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    Thanks @Melanie Dupuis and @Julie Toh for your responses. After speaking to the mortgage broker we used when purchasing the property we understood that we would be treated as non-residents and lending would be at 65% LTV max. Our previous broker works mainly with 3 of the big banks, and as you mentioned Julie their lending criteria rule us out for taking out equity as a part of the refinance. Are there lenders that would actually let us do this and if so what sort of criteria would need to be met? We have a lot of equity in this property that we are keen to access, and moving back to Canada so we can be deemed residents again isn't an option for us for several years!! Thanks again.

    @Charla Telford I would suggest reaching out to any Credit Union thats based in Halifax, Credit Unions are fairly liberal and are flexible about this. I would suggest checking online or talk to a local mortgage agent who works with Credit Unions in Halifax.

    @Charla Telford  

    Hi Charla - I am investing heavily now in Halifax and surrounding area.  I believe the potential there is HUGE!  I am doing some rehabs as well as mostly land purchases for new builds.  The new build process is slow due to covid restrictions and trades being busy.

    Yet, we have 2 - eight plexes that should be ready soon - 2 year build instead of 1.