Non Resident

Many lenders offer solutions for non-residents. Typically you need to have 35% down however some alternative lenders may allow less down. Also for a US resident, some traditional lenders will allow 20% down.

A non resident can purchase a family occupied home, a recreational property or an investment property.

The down payment can be from savings and a family gift is allowable with some lenders. If a rental property however, a gifted down payment is not permitted.

The solicitor’s preliminary report typically needs to be completed with the customer present. Therefore one needs to be in Canada to sign the final papers.

All debts, including housing costs from principal residence, are included in the debt servicing calculations and standard debt servicing calculations apply.

For client’s in the US, a US credit bureau will be requested. For some lenders, for non-US international applicants, the customer is required to provide one of the following to show evidence of credit history:

  • a copy of the customer’s international credit bureau report or,
  • 6 months of credit card statements from the country of origin demonstrating satisfactory
    repayment or,
  • 6 months of bank statements from the country of origin demonstrating satisfactory loan
    or mortgage repayment

Alternatively some lenders will require a reference letter from a financial institution in their country of residence.

In addition, lenders will require:

  • income verification
  • photo ID
  • a void cheque from a Canadian bank account for the mortgage payments
  • down payment confirmation

For the down payment, the funds must be in a Canadian bank account at least 30 days  before the closing date.

Some lenders require that borrowers must have liquid assets of the equivalent of 12 months of principle, interest and tax payments.

All supporting documents must be provided in English or French. Any translation required must be completed by an independent professional translation service. Any cost insured for this is the client’s responsibility.

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