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

 

Down Payment

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.

 

Credit Bureau

As a non resident, a lender will require a credit report from your home country or a reference letter from your financial institution. 

 

Documents

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.

 

Liquid Assets

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.

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