Mortgages for those who do not reside in Canada (non-residents)

March 24, 2010

Partnering with a major bank in Cannada, Valueland is now able to offer mortgages for non-residents of Canada. Here is how it works:

Background: This program is for those who are not residents of Canada. You live in a foreign country such as the US, Mexico, England, France, China, India, Russia and do not have a residence in Canada.

Purpose of Purchase by Non-Residents of Canada

You must use the property to be purchased as your own residence, your vacation property or for your children's living for their education. This property cannot be a rental property. Even you do this as an investment, you do not rent it out (every purchase of properties is an investment!).

How much can a non-resident borrow and what are the rules around the mortgage approval?

You can borrow up to 65% of the property value for financing. For example, if your purchase price is $500,000, you are able to borrow $325,000 as a mortgage. The rest (i.e., $175,000) must come from your own resources.

• Single-family dwelling or condominium (no rental properties)
• Located in Greater Toronto or Vancouver
• Appraisal required
• Mortgage loan only and up to a maximum of $500,000
• Collection of property taxes by the lender if  loan to value exceeds 50%
• Borrower must be in Canada to complete the purchase

What are needed from non-resident borrowers?

• Must have cash resources equal to one year's payments including principal,
  interest, insurance and municipal taxes in a canadian financial institution
• Information on source of income (i.e. type of employment, business, etc…) must be provided, but not to be verified.
• Must have a favorable reference letter from a recognized banking institution
• Must have a minimum 35% down payment from their own resources

To apply, please download the application form here. Once completed, please fax/email back to us at the email/fax indicated on the form. Valueland will start working on it.

If you still have more questions, please contact Valueland, we will answer them as soon as possible.