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
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
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
Additional cash-on-hand requirement of 12 or 24 months of Principal-Interest-Taxes net worth requirement (over and above the down payment)
Standard – employment letter / pay stub (insured mortgages only)
Permanent Residence Form (IMM 5292/IMM 5688)
Permanent Resident Card
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
Co-Ownerships – on approved list
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
Sudan (including South Sudan)
Cuba (on exception)
Foreign Workers - Non-Permanent Residents Of Canada
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)
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
Canadian or US bureau if available and / or Reference Letter from home bank, country of origin
Standard policies - employment letter / pay stub, self-employed people need to provide 2 years of their Canada Revenue Notice of Assessments
Must be in a Canadian bank account for a minimum of 30 days prior to closing.
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