Non-Resident Mortgages

New regulations in recent years have caused the withdrawal of many lenders from the Non-resident mortgage market.

There are now limited options for this type of financing and the criteria can seem a bit over the top, however, amid concerns of protecting the Canadian banking system and prevalent money laundering and mortgage fraud, it is somewhat understandable.

What is available and what is not (or is difficult at best):

-Purchase financing is acceptable with participating lenders.

-Switching lenders at renewal without new funds – sometimes possible.

-Refinancing- difficult if new funds are required. With existing lender – sometimes possible.

-Construction financing can be difficult as well.

Criteria for new purchase financing:

US residents 20% to 35% down payments required. Expect down payment to be even higher for high end properties as most lenders have a sliding scale pertaining to property value. Also dependent on whether property is 2nd home or rental.

All other countries35%-50% depending on lenders criteria.

Both 2nd homes and rental property financing are available, however not all products are available from each lender.

Products are also limited:

-Variable rate mortgages and fixed rate mortgages are the usual product offerings.

-Line of credits restricted, usually not available to Non-resident purchasers or on exception.

Non-Resident Mortgages Information October 2, 2017