Non-residents looking to purchase a home in Canada with mortgage financing can do so, but there are some additional considerations and requirements compared to residents. Here are the key points:
1. Down Payment: Non-residents typically need to make a larger down payment, often 35% or more of the purchase price, compared to the minimum 5-20% required for Canadian residents.
2. Income Verification: Lenders will require proof of income, which may include foreign income. You'll need to provide documentation such as pay stubs, tax returns, and bank statements.
3. Credit History: While Canadian credit history is preferred, lenders may accept international credit reports. If you don't have a Canadian credit history, be prepared to provide additional financial documentation.
4. Legal and Tax Implications: Non-residents should seek legal and tax advice to understand the implications of owning property in Canada, including potential withholding taxes on rental income and capital gains tax upon selling the property.
5. Mortgage Approval: Each lender has its own criteria for approving mortgages for non-residents. It's advisable to work with a mortgage broker who has experience with non-resident clients to navigate the process and find the best mortgage options.
By meeting these requirements and working with experienced professionals, non-residents can successfully secure mortgage financing to purchase a home in Canada.
Contact The Mortgage Missus Inc. today to learn more!
Tonia Mercer | The Mortgage Missus Inc.
About the author,
Tonia Mercer is an independent mortgage broker. She has been in the industry for 15 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.Â
Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers.Effectively creating a concierge service for all things financial and real estate.
Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmissionÂ
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