Expert: Cinzia Dalgarno - 10/25/2009

Question
Hi, do you know if it is possible to get a mortgage on a property in Canada if you are a non resident? I am from the Uk.

Answer
Hello Andrew. Non resident mortgages are indeed available. You will have an easier time of getting a mortgage as a non-resident if you use the services of a mortgage broker, as we have access to over 70 financial institutions, and therefore will more easily be able to find a bank that will give you the best product for your specific needs.
Some of the information you may need, depending on the lender:
-a letter of employment
-a banker's report (basically, a reference letter from your current bank in the U.K., indicating how your accounts are run, etc)
-6 to 12 months worth of mortgage payments, in a canadian bank account (depending on the lender)
-enough money for a downpayment, as typically non-residents will get at the most 65% of the purchase price as a mortgage, and will have to provide the remaining 35% from their own funds.
-downpayment confirmation; you will need to prove that your downpayment was not borrowed (ie, 3 months statements showing the money in an account in your name)
-Finally, you will want to open an account in Canada as quickly as possible.

It will make a difference if you are planning on using the property as a rental property or as a 2nd home. It will be easier to get a mortgage if it is to be used as a 2nd home.

Please let me know if you have any further questions or concerns.

Warm regards,
Cinzia
mortgagebycinzia@gmail.com