What qualifies under non-resident lending? – and what is a “nonresident” when it comes to lending?Â
Non-resident means you are Canadian but you earn your income outside of Canada. This qualifies for those who are Canadian Citizens and those who have a valid PR (permanent residency)
There are 2 main options for Non-resident lending:
US non resident lending
- those who live and work in the US can buy and or own 1 property in Canada
- it must be a primary residence or second home (no rentals)
- minimum 20% down payment
- FULL confirmation of income (based on income type) is required
- any and all liabilities in both Canada and USA
- FULL US credit bureau will be pulled
- NO gifted down payment (down payment from own resources only)
- NO refinancing
- Must sign with lawyer on closing (in Canada – in person)
- Max amortization 25yrs
Non-resident lending (outside of North America)
- For those who live and work outside of North America
- Minimum 35% down payment
- Rental property purchase welcome
- Max 3 properties in Canada total
- Refinancing is “possible” on a case by case basis
- MUST sign with lawyers in Canada on closing
- Max amortization 25yrs
Other items to consider:
- In almost all cases, salaried applicants will qualify a lot easier than self-employed persons, but it’s important to speak to your mortgage broker to discuss the specifics of your situation.
- Standard income verification by way of a letter of employment and pay stubs is utilized along with an international credit bureau and proof of downpayment.
- Funds from overseas must be in Canada at a minimum of 30 days prior to closing in a Canadian institution. Please note – the lenders will still require a full 90 days history of funds and will want a copy of any wire transfers from outside of Canada.
- Certain countries have additional due diligence requirements in the event they are sanctioned or otherwise known for money laundering. This creates additional time for approval and can lengthen the process by up to 14 business days.
- There are no pre-approvals offered directly from banks for non-resident lending, however, your mortgage broker can provide your likelihood of approval and can assist you in determining how much you can qualify for.
- A full application and ALL documentation is required upfront in order to provide a pre-approval
- Non-resident lending programs will typically have a cap of 1-3 properties max that can be owned by a non-resident. Some lenders may impose this cap specific to their institution and other lenders may state a maximum amount of properties you can own at any lender.
Reach out to the seasoned pros at Mortgages.ca who can help you determine what you qualify for under non resident lending guidelines 🙂
***Please note – there is currently a Foreign buyer ban in Canada until 2027***