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Navigating Non-Resident Mortgages with Confidence

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Whether you're a Canadian living abroad for at least six months of the year or a foreign national looking to invest in Canada, the world of non-resident mortgages can seem complex. But fear not; as your dedicated mortgage broker at MortgagePal, I'm here to simplify the process and save you time and effort.

Recent federal restrictions have introduced new eligibility requirements for non-residents looking to buy property in Canada.

Here's what you need to know:

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Foreign Buyers Ban Amendment (as of Mar. 27, 2023):

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• Those with permission to work in Canada and a valid work permit can purchase a primary residence (certain conditions apply).

• Exceptions to the ban include permanent residents, refugees, and temporary workers (subject to eligibility criteria for home buying).

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At MortgagePa, we have the expertise to guide you through the intricacies of non-resident mortgages. Our goal is to provide you with the best advice and outline your options to make the process stress-free. We're well-versed in the latest programs and opportunities available to non-resident buyers.

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What You Need to Know:

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Being a non-resident may impact your mortgage eligibility. Many lenders have specific restrictions and requirements for non-resident mortgages, which may include higher interest rates and larger down payment obligations compared to Canadian citizens or permanent residents.

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Here are some key considerations for non-resident mortgages:

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1. Larger Down Payment:

• U.S. residents typically require a minimum down payment of 20% from their own resources.

• Non-residents living outside Canada or the U.S. often need a minimum down payment of 35% from their own resources.

• The intended down payment must be available in a Canadian bank account before mortgage funding.

• Down payments cannot be in the form of a gift, and proof of funds for the 90 days preceding financing is typically required.

• If you already own property in Canada, a 35% down payment is typically required for your next property purchase.

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2. Proof of Income:

• You'll need a recent paystub and a letter of employment from your current employer, confirming your length of employment, annual salary (including bonuses), and probation status.

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3. Proof of Credit:

• If a Canadian credit bureau is not accessible, some lenders may accept an international credit bureau report or a letter of reference from your current bank.

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4. Availability of Funds:

• Certain lenders may require you to maintain a year's worth of mortgage payments in a Canadian bank account before granting approval.

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Our commitment at MortgagePal is to provide you with easier access to mortgages across Canada, all while securing the best rates for your unique situation. We genuinely care about your mortgage needs, both now and in the future.