Non-resident

Usually Canadian banks and lenders require non-residents have a minimum 35% down payment (in other words, 35% of the cost of the home paid for in cash, with a maximum of 65% of the home’s value provided as a mortgage). Different banks have different rules of course, and some will be stricter than others.

How do I qualify for a mortgage as a non-resident?

To qualify for a mortgage for a property in Canada, non-residents will generally require:

  • A 35% down payment (not from gifted funds)
  • A reference letter from their bank
  • An employment letter verifying income in Canadian or US dollars
  • Three months bank statements
Canadian credit check

Non-residents are eligible for the same interest rates as Canadians, provided they meet the mortgage eligibility criteria. If you live in a country that does not have a tax treaty with Canada, you will only be eligible for a fixed-rate interest rate.

Will Canadian banks consider rental income as part of my income?

Most lenders will only consider rental income from Canadian properties, and thus rental income from properties outside of Canada will not be considered part of your income to qualify for a Canadian mortgage.

How long does the down payment have to be in a Canadian bank?

Normally, most Canadian banks will require your down payment to be in a Canadian bank for 30 days before the closing of the purchase. Most banks will want to be able to trace the source of your down payment going back 90 days.

Contact us if you would like to learn more about this.