Understanding mortgages for Non-Canadian Residents
This is not as complicated as you might think. You should know that’s even if you are a foreign national, as of such there is no restriction for you to buy a property in Canada. You would have to meet some requirements to ensure that the process completes smoothly. Here’s where we come in. Our team at One Mortgage Group can help you set up a mortgage plan without any hassle. You would need to submit some important documents for the paperwork to go through and that’s it. We will take care of everything else. You can contact us today and reserve an appointment, we look forward to hearing from you.
What would you have to do to qualify for a mortgage?
Now, since you’re a non-Canadian, the general mortgage terms do not apply here. Don’t worry though, these rules are not that rigid. Here is a list of criteria that you would have to meet to be eligible for a mortgage:
- Mortgages are available up to 80% loan to value, and you will have to pay 35% as a down payment of the total purchase price of the new property you own.
- You will need to submit a credit application along with income confirmation with 2 years of tax return filings, employment letters and pay stubs.
- A confirmation letter on the down payments would be required.
- You must have a Canadian bank account as all payments would be done through that account.
- You will have to submit a bank reference letter in lieu of credit report and it should include information assets, payment history and any borrowing history.
- Documents in other languages should be translated by a professional translator or a notary.
- You may have to be physically present in Canada to sign the formal mortgage instructions with a Canadian solicitor 10-15 days prior to property possession.
- The maximum amortization period would be 25 years.
If you meet all these requirements, there will be no problem at all for the mortgage plan to process without facing any problems. If it does though, we will inform you and will do our best to get it resolved as quickly as possible.
Taxes and more
The jobs’ not done yet, if you are a Non-Canadian, you would have to pay a 15% Non-Resident Speculation Tax. The good news is, you would be eligible for the same interest rates as Canadians. Here you should know, that if you are from a country without a tax treaty with Canada, you would only be eligible for a fixed-rate mortgage. We understand that all of this might sound a bit complicated, but you can rely on us to close the deal on your home mortgage. We understand how important investment is when it comes to properties and that’s why our team always goes the extra mile to get the job done. If you want to know more about the finer details of mortgages for non-Canadian residents, feel free to contact One Mortgage Group.
At One Mortgage Group, our mission is to set a high standard in the mortgage industry. We are committed to quality customer service - putting the people we serve first.
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