Non Resident Mortgages
Fortunately, there are many options for non resident buyers in Ottawa. A non resident can purchase a family home, recreational property and an investment property.
Buying a property as a non resident:
Typically as a non resident buyer you need to have 35% down payment. Some alternative lenders may allow less down, such as 25% as well as for US residents. Some traditional lenders will allow 20% down.
The down payment can be from savings and some lenders will allow a family gift. If buying a rental however, a lender will not allow a family gift for the down payment and it will have to come from savings.
The down payment must be in a Canadian bank account and be in the account at least 30 days before the closing date.
Meeting with a lawyer
You typically need to be in Canada to sign with your real estate lawyer. However, a lender may make an exception to this.
Your current debt obligations
A lender will include all debts, including the costs from your principal residence, in the application.
A lender will require a credit report from your home country.
For those outside the US you may need to provide one of the following:
- International credit report or,
- 6 months of credit card statements showing payments on time or,
- 6 months of bank statements showing mortgage payments on time
In addition, some lenders will require a reference letter from a bank in your country.
Furthermore, lenders will require:
- Income verification
- Photo ID
- Void cheque from a Canadian bank account for the mortgage payments and,
- Down payment confirmation
All documents must be provided in English or French. Any translation required must be completed by an professional translation service and the cost of this is a client’s responsibility.
In addition, some lenders require that borrowers must have liquid assets of the equivalent of 12 months of principal, interest and tax payments.
If you are a non resident and are thinking of buying a property in Ottawa, I invite you to contact me today to review your mortgage options.