All Forum Posts by: Allan Snow

@Brianne H.

This should help you and down near the bottom there is a post from Gord Stevenson which i will paste

Home»Landlording and Rental Properties»What You Should Know About Investing in U.S. Properties From Abroad

GORD STEVENSON on

As the author said, Canadians need to be careful about double taxation. Traditional consensus was to stay away from using an LLC to hold US property because Canada would see the LLC as a corporation and the income as corporate income. Since the US sees LLC income as personal pass through income there is a mismatch so the Tax Treaty does not allow US tax paid to be recovered through a Foreign Tax Credit. So, double taxation. Traditionally, the consensus was to use an LLP instead because Canada does understand a partnership.

However, the CRA (Canada's tax authority) changed their position on LLPs in about May 2016, starting with LLPs set up in Delaware and Florida, but this is likely to spread to other states as well. Now they say an LLP will be considered as a corporation as well. The CRA says that LPs will still be considered as partnerships but an LP (as opposed to an LLP) does not contain liability for the General Partner.

So, going forward it seems that it may be better for Canadian Residents to hold US rental properties directly in the name of the inverstor(s) and reduce liability risk with increased liability insurance.

@Chau Pham @Brianne H.

You have to contact the banks US branch to get financing for US properties. Just make sure to use .com and not ,ca in your search.

if you want to inbox me i can give you the numbers to call

@Chau Pham

i have not confirmed this yet but from other Canadians, i was told to not use LLC or LLP.

CRA does not allow these as its now a company and you might have to pay double taxes. Was told to use LP and get lots of landlord insurance

Update on Banks

TD will finance a US Mortgage for Canadians

BMO Harris will Finance a U.S. mortgage for Canadians just not in NY (where i'm looking right now) or Texas.

RBC- Minimum $65,000 mortgage plus 40%down payment so at least an $110,000 mortgage with $45,000 down. Then you need to have 24 months reserve mortgage payments in your bank.

Hope this helps any Canadians

@Brianne H.

Hi Brianne, this is copied and pasted from my post last week. hope it helps

Update on Banks

TD will finance a US Mortgage for Canadians

BMO Harris will Finance a U.S. mortgage for Canadians just not in NY (where i'm looking right now) or Texas.

RBC- Minimum $65,000 mortgage plus 40% down. Need to have 24 months reserve mortgage payments in bank

Hope this helps any Canadians

@Joel Owens @Roy N.

Update on Banks

TD will finance a US Mortgage for Canadians

BMO Harris will Finance a U.S. mortgage for Canadians just not in NY (where i'm looking right now) or Texas. 

RBC- waiting for a call back 

Hope this helps any Canadians

@Amber Kushner

thx for the reply.

From what i'm learning, LLC is no good for Canadians as you will get double taxed. We need an LP, not an LLP either.

@Joel Owens 

Joel, thx for the reply. 

I'm an RBC client and went through their online process for the US mortgage. It was more of a hassle so i'm going to call in the morning to speak with someone.

@Roy N.

Roy, thx for the tip on TD and BMO Harris. i will try them tomorrow as well .

Guy's, I will update my progress and hopefully its good news

I'm a newbie from Canada just outside Niagara Falls and looking to buy multifamily homes in the U.S.  

I called a few banks and a broker and they all said they all said they don't give mortgages to Canadians. Does anyone know of any banks in the Niagara Falls / Buffalo area or anywhere that will loan to a Canadian?

I can take out loans in Canada to buy houses in the US but rather keep everything in one country.

Thx for any help

Allan

I'm a newbie also and my thinking is if you blow all your money fixing up the house, where are you going to get the money to add units on later. 

Why don't you spend the extra money on adding units and use the income from that to fix up the house.