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.
Non Resident Mortgages
Typically as a non resident buyer you need to have 35% down payment. Some traditional banks and lenders may allow less down if you are a non resident from the United States.
Also, alternative lenders and private lenders may allow less down, such as 20%-25%.
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.
Learn more: Down Payment On a House Ottawa
Learn more: 10 Tips for Buying Your First Rental Property
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 Real Estate Lawyer
When buying a home as a non resident, you typically need to be in Canada to sign with your real estate lawyer. However, a lender may make an exception to this.
Learn more: Law Society of Ontario
Your Current Debt Obligations
A lender will include all debts, including the costs from your principal residence, in the application.
As a non resident, a lender will require a credit report from your home country or a reference letter from your financial institution.
For a non resident who is in the USA 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.