Not a Canadian citizen? We’ll help you get approved.
Banks outside of Canada are usually unable to lend money on Canadian properties, but Canadian banks are more than willing to finance non-residents. Most require down payments of ~35% of the purchase price, but can go up to 50%.
Non-resident mortgages are typically term mortgages or balloon mortgages, where the mortgage is set for a term and must be refinanced or renewed at the end of the term. A term can be between 1 to 10 years. The mortgage is usually amortized over 25 years.
During your mortgage term, you can typically prepay 10-20% of the principal, including an additional 10-20% increase of the monthly interest and principal payment. There is no penalty if you pay off the outstanding mortgage amount at the end of a term.
If you sell your property before the term is up, however, you may face a penalty. We will review all of your options.
It is important to note that transactions must be completed in Canadian dollars (CAD). It is highly encouraged that payments and transactions are made through a Canadian Bank account.
To learn more about non-resident mortgage options, book a free, no-obligation consultation below. We’ll be happy to assist you with an additional questions.