What If You're Not A Canadian Citizen... Can You Still Get Financing?

By: Thomas Cook

What If You're Not A Canadian Citizen... Can You Still Get Financing?

There are definitely ways for non-citizens to arrange financing for real estate purchases in Canada.  These rules are divided according to the immigration status of the mortgage applicant.
 
New To Canada - Permanent Residents
 
Client Profile
 
Applicant must be in Canada less than 5 years
 
Must have established residence in Canada and obtained Permanent Residence Status
 
Minimum 3 months of full time employment
 
Down Payment
 
All monies must be in a Canadian bank account for 30 days prior to closing
 
Insured: Minimum 5% to a maximum of $1 million purchase price
 
Minimum 20% for greater than $1 million
 
Uninsured: 35%

Additional cash-on-hand requirement of 12 or 24 months of Principal-Interest-Taxes net worth requirement (over and above the down payment)

Income
 
Standard – employment letter / pay stub (insured mortgages only)
 
Documentation Needed
 
Permanent Residence Form (IMM 5292/IMM 5688)
 
Permanent Resident Card
 
Passport
 
Credit
 
Canadian credit bureau will be run, bank reference letter from country of origin and/or 12 months of rent & utility payment confirmation
 
Non-Resident Foreign Investors
 
Personal Information Required
 
No requirement for landed status
 
Supporting docs – talk to your mortgage professional since these will vary on a case-by-case basis
 
Minimum down payment required is 35% - monies MUST be in a Canadian bank account for a minimum of 30 days prior to closing
 
Income verification - employment letter and pay stub required for each individual applicant
 
Credit – Canadian credit bureau if available -  otherwise a reference letter from the buyer’s home bank is required
 
Asset verification – confirmation of liquid assets
 
Miscellaneous Information and Requirements
 
Full appraisal required
 
Rentals up to 4 units
 
Recreational properties
 
Co-Ownerships – on approved list
 
Co-ops ineligible
 
NO Power of Attorney allowed – the buyer must be present in Canada for closing
 
Land Transfer tax as per normal (Provincial and City of Toronto as applicable)
 
HST on new properties due on rentals
 
Borrowers from the following sanctioned countries are ineligible
 
Iran
 
Syria
 
North Korea
 
Myanmar (Burma)
 
Sudan (including South Sudan)
 
Cuba (on exception)
 
Foreign Workers - Non-Permanent Residents Of Canada
 
Required
 
Work Permit Form (IMM 1442): must be for minimum 1 year
 
Applicant must have entered Canada within 5 years of application

Client must be working for minimum 3 months in Canada or be a in a corporate relocation program (exempt)

Down Payment
 
High Ratio Insured Mortgages: 10% (5% for very strong applicants) – maximum purchase $1 million when less than 20% down
 
Uninsured: 35% - maximum purchase $1.5 million
 
Credit
 
Canadian or US bureau if available and / or Reference Letter from home bank, country of origin
 
Income
 
Standard policies - employment letter / pay stub, self-employed people need to provide 2 years of their Canada Revenue Notice of Assessments
 
Down Payment
 
Must be in a Canadian bank account for a minimum of 30 days prior to closing.
 
Thomas Cook
Thomas@LivingInToronto.com
647-962-1650


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