U.S. Mortgage Options and Advice for Canadians Buying or Refinancing a U.S. Home (2024)

FAQs

How hard is it for a Canadian to get a US mortgage? ›

Can a Canadian get a mortgage from a US bank? Yes. Canadians can both open a US bank account and get a mortgage directly from a US bank. In practice, however, not every lender is keen to offer local mortgages to foreign clients—and you may face less favorable terms and rates when they do.

One of the key differences between Canadian and U.S. mortgages is the length of the term: In the U.S. your mortgage term spans the length of the amortization period. So at the end of the term, the mortgage will have been paid in full.

As mentioned, Canadian permanent residents in the U.S. can qualify for any conventional residential loan program available to U.S. citizens. And all Canadian citizens, regardless of their residency status, can qualify for mortgages on investment properties in the U.S., as well.

The U.S. mortgage process takes about 40-45 days. Begin your process with an online pre-approval to see how much you can borrow. From there, your Cross-border mortgage advisor can help you through every step of the mortgage application online as well as guiding you through the easy upload of your required documents.

There are no specific income requirements to qualify for a mortgage. Lenders use your debt-to-income (DTI) ratio to compare income versus your total debt with the mortgage to determine whether you'll qualify for the loan.

A Canadian can stay in the US for a maximum of 6 months from the date of entry, BUT any exit and re-entry resets the clock. Of course, Canadians should be careful doing this, as too many exits and re-entries within a given period might cause CBP officers to infer an intent to reside on the part of the Canadian visitor.

Do Canadians pay taxes on U.S. rental income? By default, gross rental income from U.S. properties received by Canadian U.S. non-residents is subject to a 30% withholding tax. A one-time election can be made to treat the income as effectively connected with a U.S. trade or business.

The purchase of property will not get you a green card through the EB-5 program. A requirement for EB-5 is the creation of 10 full time jobs.

The lowest rate for a 30-year amortization in Canada is typically higher than a similar 25-year amortization mortgage. This is due to the restriction of 30-year amortizations being only allowed on uninsured mortgages.

Do US banks do international mortgages? ›

As a general rule, US banks do not generally offer international mortgages to American citizens. Those that do typically cover selected countries only.

A 30-year fixed-rate mortgage is the most common mortgage loan option.

Assuming a 30-year fixed conventional mortgage and a 20 percent down payment of $80,000, with a high 6.88 percent interest rate, borrowers must earn a minimum of $105,864 each year to afford a home priced at $400,000.

TL;DR – Yes, Canadians can easily finance up to 75% of their property purchase in the US with a loan from one of the many financial institutions affiliated with America Mortgages. Canadians buy US property as an investment. Canadians buy a house in the USA to own a second home / vacation home.

The short answer is yes. Ownership of Mexican properties by Canadians is through the Mexican constitution. In the 1917 constitution, foreigners could not own Mexican property. In 1973, a new constitution allowed Canadians to own property only in the non-restricted zone in Mexico.

In Switzerland, which tops the list, the average age for first time buyers is 48. With a difference of £91,892 ($122,859), a first-time buyer in the UK will have to stump up at least 15-20% of this to secure a mortgage based on average salary.

Credit score and mortgages

If lenders review all the information and determine that you are likely to make your mortgage payments in full and on time, you may be able to get better loan terms. The minimum credit score needed for most mortgages is typically around 620.

Many banks and mortgage companies offer conventional and FHA home loans to non-U.S. citizens, provided they can verify their residency status, work history, and financial track record. Lenders that work with this population extensively tend to be more flexible with the documentation you need.