For Canadian buyers of homes in the U.S., securing a mortgage has always proven tedious. Lenders that provide mortgages for foreign nationals seem to come and go like the wind.
Fear not. We still have a very active local lender that puts together loans for second homes for foreign nationals – Canadian and otherwise.
They offer a 30 year fixed rate as well as a 15 year fixed rate product (current rates are 7.375% for the 30 year product and 6.75% for the 15 year). I’m not aware of any other lender offering a 30 year fixed rate for foreign nationals.
Typically 25 – 30% down is required, though this lender has some flexibility on down payment requirements “in the right situation for the right borrower”.
The CAD – USD current exchange rate is pushing toward a 180 day high, giving Canadians more buying power than they’ve had in the last six months.
Chart courtesy of exchange-rates.org
At the moment of this writing, $1.18159 Canadian will get you $1 US Dollar. Just two months ago, it took $1.30 CAD to get a greenback. “Big deal, 12 cents”, you may be thinking. Well, if you’re dropping $100,000 on a house, that amounts to $12,000… Spending $300K? You can do the math.
Hit us up for info on the lender if you’re interested and we’ll get you hooked up.
Additionally, to save what can amount to very significant money, see this post about using a foreign currency exchange. While the Loonie is no longer at parity with the greenback as it was almost a year ago when that post was written, the exchange rate is still quite favorable for Canadian buyers, and we still see many of our friends from the north buying across the Phoenix real estate arena.