Not a Canadian citizen? Not a problem – we’ll help you get approved.
Banks outside of Canada are usually unable to lend money on Canadian properties, but banks inside Canada 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.
In a term, the mortgages allow for prepayment of 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 mortgage amount outstanding at the end of a term.
Be warned that if you sell your property, you can incur penalty interest, unless you transfer the mortgage to another one of your property or have the purchaser assume the mortgage.
It is important to note that transactions must be completed in Canadian dollar (CAD). It is highly encouraged that payments and transactions are made over a Canadian Bank account.
To learn more about non-resident mortgage, book a free consultation below. We’ll be happy to assist you with an additional questions.