Here is a quick rundown of a few things Americans (or Canadians living as residents in America) should know about buying real estate in Canada:
Minimum Down Payment
20% is the minimum. Some lenders may have more stringent requirements such as 35% down payment or even 50% down payment
Taxes Apply
Different provinces have different taxes for non-resident buyers. It’s important to check with a real estate lawyer in the area you are buying to confirm what taxes will be applicable. (Foreign buyers tax)
Credit and Income
Most Canadian banks will check your American credit and income. They will want to make sure that the American buyer is able to income qualify for their debts as well as their new mortgage in Canada.
Mortgage Products
Most banks have a restrictive range of products available to non-residents. A full pre-approval before buying is suggested so as to insure that there aren’t last minute hiccups.
For Americans looking to purchase in Canada we suggest that you reach out to us for a full review of the Canadian mortgage process and rules as they are different than those in America.