Mortgages for Canadian Buyers Still Available

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Canadian Flag

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.

CAD USD Exchange RateChart 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.

Canadian Flag Photo Credit: Creative Commons photo by Ian Muttoo

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About the Author
Jay Thompson

I'm a real estate broker in Phoenix, Arizona and the publisher of the Phoenix Real Estate Guy blog. I tend to drive too fast and scream at the University of Texas and Denver Broncos football teams. My two kids are smarter than most adults I know and my wife is simply amazing.

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  1. Jay, thanks for the info on financing for Canadians. I do work with quite a few Canadian buyers looking for horse properties here in the Rio Verde Foothills (far NE Scottsdale). Usually they pay cash, but it's good to know financing is available.

    **Claudia Jordan´s last blog post..Real Estate Sales Break Records in Rio Verde Foothills – April 2009</abbr></abbr>

  2. IF I want to buy a home in the future in the Phoenix area I will give you a shout for sure. I remember when we came to our convention in Colorado Springs in October of 2007 and the Canadian Dollar was actually worth MORE than the Greenback by a whole 10 cents! I did quite a bit of shopping as your prices in the US for everyday goods and electronics are quite a bit better then they are here in Canada.

  3. Melanie says:

    As if socialized health care, Barenaked Ladies, and sewing giant maple leaves on backpacks while traveling through Europe weren't already enough reasons to think Canada is coolio…now this. :D

  4. Mathew Lesko says:

    thanks for the valuable info on financing

  5. Thanks for this information. That is awsome. It seems as though it is a perfect storm to our benefit. 6.75 is still a fair rate too. Thanks again for the info!.

    **Brewer Caldwell´s last blog post..Brewer Caldwell is the BEST</abbr></abbr>

  6. This is good information. We have sold several to Canadian investors but ran into the same snags. They ended up buying for cash as well. Thanks again for the info.

  7. Funny, I just had an email from a loan officer here in Las Vegas that is advertising he can get Canadians loans. We’re still getting a lot of interest here from our Northern neighbors too.

    **Charles´s last blog post..Hope for Distressed Homeowners

  8. Nice to have a market where you can bring people in to buy who have no intention of living there more then a few months out of the year. Here in New Jersey, we have to have some darn good jobs availible to get people to relocate here. :)

  9. Colin Egbert says:

    I think that Canada’s economy offers more stability than the United States, solely based off of the fact that they offer free healthcare to all citizens that live within the country

    • The Canadian dollar is strong right now-this was some great information for all of us! Should any of your American readers start thinking of moving to Canada, I'll be happy to help! Lol

      Also, Colin, while we do have a great economy right now, I do have to let you know that the healthcare isn't free-we are taxed in order to cover the costs on it and while it is great that everyone has the opportunity to go to the doctor, our healthcare system has its drawbacks as well. I would also venture to say that the type of healthcare system a country has has very little to do with the state of the overall economy, though having a healthcare system generally demonstrates a civilized and strong country.

      And if you decide that you would like to move to Canada to enjoy our healthcare, feel free to give me a call.

  10. I actually have a client looking to do a foreign national investment loan as we speak. He is a British citizen looking to buy a home for his brother to live in (brother has a foreclosure and bankruptcy within 2 years in CA). Will your lender do loans for purchases in Georgia? My regular lender is having a bit of trouble finding a bank to do the foreign national loan. Any additional advice you have would be greatly appreciated!

  11. From everything that I have been reading the Canadian dollar is going to get stronger before it gets weaker, so Canadian buyers should take advantage while the window is still open for them.

  12. My parents live in Maricopa, or the "Copa" as me and my friends like to call it. Canadiens seem to be buying up all of 85239, mostly in cash. It's good to know there is some leverage available. Good info as always Jay.

    **Marty Boardman´s last blog post..Begin with the Beginning in Mind</abbr></abbr>

  13. Our dollar here in Canada is a commodity driven amount. We will see it go up as the price of Oil and Gold goes up.

  14. Great opportunities for Canadian buyers. I've found some locally owned banks willing to loan too. I've found with a couple of them the money needed to be seasoned for 60 days (probably depends on the bank though).

    Great post.

    **Brandon´s last blog post..Virtual Tours</abbr></abbr>

  15. Great information for Canadian buyers, esp now while they can take advantage of their money being so strong here!

  16. Scott says:

    That is good news and other local lenders should follow suit to make this available to second homers for Canadian buyers.

  17. 12 cents doesn't sound like much unil you start talking big numbers, like for a home! Canadian buyers can save a bundle buying right now while thier money is strong with ours.

    **Margaret Safford-Metro Atlanta Real Estate´s last blog post..Does the Metro Atlanta Real Estate Market Mimic the New HGTV Shows?</abbr></abbr>

  18. Have you found that many Canadians are taking advantage of the weak dollar and REO's to buy a lot in your area? It is great news for us all that there are still some lenders out there that will serve the needs of Canadian clients.

  19. I agree with Colin, canada's economy offers more stability compared to US. I think this is the best time to go on mortgages again.

  20. Nice post and the article was so interesting to know about the Mortgages for Canadian Buyers Still Available. Thanks for sharing your information about this.

  21. Canadian First Time Home buyers question?
    I currently own a mobile home in a mobile home park and this was the first property I have ever purchased. I am now in the process of selling and buying a townhouse and have been told through our mortgage broker that a mobile home does not count as my first purchase, and that I am still concidered a “first time home owner” It seems to good to be true. Is this for real?

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