In 2010, there is a very active Condo market in Canada, especially in Ontario and several of the investors are non residents seeking condo mortgage financing.
In many cases, the non resident buyer may only be looking for a short term solution for financing as they are interested in taking advantage of the resale opportunities.
Whether their mortgage requirements are short term or long term, there are condo loan solutions available to them.
For these residential condo investors that are non resident to Canada, the mortgage solutions are equity based, non income qualifying, and sourced through private mortgage lenders.
Like most equity based mortgages, the required down payment is at least 25%. All sources of funds must be verified and comply with all international money transfer laws and protocols.
The mortgage term available is primarily for one year with posted interest rates of around 10% and also an open repayment option where by the mortgage can be repaid at any time without penalty.
These condo mortgage loans can be an excellent form of bridge financing for non resident investors, especially with the absence of a prepayment penalty clause.
A commitment for condo market mortgage funds is based on a certified appraisal valuation of the property as well as verification of the down payment.
While I am using the term condo here, this type of financing would be available to non Canadian residents for any type of residential unit in Canada.
There are a few additional requirements for non resident property buyers.
First, the condo mortgage closing must be performed in person by the actual buyer of the property. No power of attorney will be recognized for this purpose.
Second, all correspondence related to the condo property loan will be done through the purchaser’s solicitor.
If you are a non resident of Canada seeking condominium mortgage financing or require more information on condo loans for Canadian residential property units, I recommend that you give me a call so that we can go over your situation together and discuss the available options.