Non Resident Mortgage Financing

“We Place Non Resident Mortgages On Canadian Properties For Non Residents of Canada”

For non resident mortgage financing programs in Canada from bank or institutional lenders, there are some basic requirements that have to be met that are quite common to most of the institutional lenders that provide this type of mortgage program.

But before we even get into some of the specific requirements, the most important point for non residents is that these type of mortgages are quite commonly placed in Canada. The key to getting a non resident mortgage that meets your requirements and time lines is to work with an experienced mortgage broker that has knowledge of the available mortgage programs and a track record for getting them placed. Because we are talking about institutional or bank mortgage programs, the mortgage broker fee is paid by the bank and has no impact on your rates, terms, and fees, so there really is no reason not to use a mortgage broker for this type of transaction.

Ok, back to the features and requirements.

In general terms, a non resident mortgage can be approved for up to 65% of the value of the Canadian property being acquired or refinanced. The amortization period on an approved non resident mortgage can also be as high as 35 years.

The main application requirements center around customer and application information verification.

All aspects of the non resident mortgage application need to be verified by the mortgage lender including but not limited to…

  • Standard verification of all sources of income and amounts.
  • Verification of all assets (including the down payment for real estate purchases) and credit obligations that are outstanding including the balances owing and repayment terms. It will be important to show debts and related payments so that the debt servicing ratios can be accurately calculated.
  • Confirmation of the customer(s) identity.

Another key area of the non resident mortgage application is the credit verification.  Because the applicant may not have any form of established credit in Canada, the mortgage lender will typically require a letter of reference from a financial institution that the applicant currently has outstanding financial facilities with or has had in the past.  If the applicant has been able to establish some level of local credit, then a Canadian based credit report will also be drawn for further support.

If you’re a non resident of Canada and looking to secure a mortgage against Canadian property, please give me a call so we can go over your requirements together and outline the steps required to get your mortgage in place as soon as possible.

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About the Author Joe Walsh

I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel