Canadian Investors can and did invest in US Real Estate in 2023

For Canadians, like myself, owning US Real Estate can be an attractive option, not only in terms of usage, enjoyment and lucrativeness but also for feasibility. 

It could certainly be coincidence that international and foreign national investors found me as their real estate representative this year, after all I am an international citizen, born just outside of Toronto Canada, but it could also be that Canadians and foreign nationals, even those without US social security numbers, have plenty of incentive to invest in the United States.

Foreign National mortgage lending in the US is paradoxically some of the most straight forward and and 'easiest' mortgage money to qualify for. Many lenders will require proof of international employment and income and usually with 20-30% down..Voila! No barriers to entry or restriction and the property can be titled in your name, usually within a matter of weeks. 

The terms can be very attractive, and Canadians that have long dreamed of owning a second residence, retirement home or property investment portfolio can execute, quite efficiently with a reputable lender and clear vision and goal. 

As a licensed mortgage broker with deep roots in Florida, I've helped many of our friends north of the border find their second homes or provided financing for purchase. Since moving to Oregon, I have seen a steady stream of foreign buyers exploring the Pacific Northwest for opportunities from as nearby as Vancouver to as far as Taiwan. 

2023 was no exception, as I helped at least one international buyer without a US passport purchase an investment property and am working with several others currently seeking to expand their vacation rental/second home and multi family portfolios. 

As an international investor, there are very few countries that are as inviting and safe for foreigners to purchase real estate. In Mexico where we have a tiny casita, not only do we not own the land, but even if we did, financing would be tremendously difficult. At a minimum lenders generally want 50%+ down and 12%+ in interest, and NOT amortized over 30 years. Most US buyers purchasing international property do so with cash, either by force, or by re-leveraging property and taking out a second mortgage or equity line on their existing investments. 

The Canadian Real Estate market has some major differences in comparison to the US, primarily in the way properties are financed and how mortgage repayment and terms are structured. Most terms are for less than five years, meaning that those that acquired property during the recent bull run or refinanced when rates were historically low the past few years, will see considerable if not catastrophic increases in their mortgage payments in the coming months and years. 

International lending and mortgage conditions further highlight some of the attractiveness of foreign investors to consider purchasing real estate in America. The fully amortized thirty year mortgage is an abnormality in global banking, primarily enabled by the 'subsidized' nature of the US mortgage industry. Foreign and Canadian investors with verifiable assets have a host of attractive lending and investment options available to them that could provide ownership of some of the most desirable destinations in North America.