Domestic

For all domestic purchases be it personal of for Investment. It has to be determined whether the buyer qualifies. Some lending houses or institution have a cap of no more than 4 or 5 investment properties to be in a portfolio up to which lending shall be considered for that individual. In either case there are qualifications that need to be adhered too, these being the client ability to show their Income supports the purchase serviceability by 3 months of pays stubs, Job letter, and bank statements. One of the most Important components is the Individuals Credit Score. For those who have an almost perfect credit score can be assured of great mortgage interest rates. For those Individuals with less than perfect or even bruised credit scores, there are always mortgage solutions with higher rates. In either case there is always a solution for everyone.

International

As an international home buyer interested in purchasing a property in the safe and reliable Canadian real estate market, you will be glad to know that Canada accepts buyers from all countries! Not only are all international buyers encouraged to participate in the Canadian real estate market, there are also no restrictions on the type of real estate that one can invest in. An investor can buy anything from commercial buildings to residential properties and at HVR Financial Inc we can help you get approved for the right mortgage to obtain your objectives.

Definition of an International Buyer

An Investor, who has purchased a property in a country without residing there permanently. In Canada, anyone is welcome to make a foreign investment regardless of where they reside. It is important to remember that even those with Canadian citizenship can be considered international buyers. In Canada, anyone not earning an income, paying taxes, or living out of the country for over half of the year is considered a non-resident. On April 21, 2017, a new tax rule was introduced requiring all non-residents purchasing homes in Ontario to pay a Non-Resident Speculation Tax of 15% of the purchase price.

Down Payments

The lending process for international buyers is similar to that of Canadian buyers except lenders often require a larger down payment. There are a few factors that can impact the amount a borrower must put down upfront. Buyers living in the United States that intend to use the property rather than renting it out are able to put down a 20% down payment, as long as they can prove they have a sufficient income. Buyers living anywhere else in the world who can provide proof of income must contribute 35% of the purchase price as a down payment. International buyers who are unable to verify their income will be required to pay 50% of the property price as a down payment. At the banks, foreign investors are eligible to receive a maximum mortgage of $750,000 for a 25-year amortization period and the investor must not own any other properties in Canada. Proof of income (pay stubs, income tax returns, letter of employment proving you are able to pay the mortgage) Proof of down payment (bank statements proving you can finance the down payment amount) Reference letter from your national bank Appropriate bank statements for the last 6 months OR a report from an international credit bureau maybe required.