Posted on: 16th Sep, 2010 05:56 pm
Good evening, my wife and I would like to purchase an investment property in Arizona eventually using it as a second home during the winter when we retire. We would like to get a mortgage for 50-60 % of the purchase price. We reside in Ottawa, Canada and are planning to travel to Arizona next month to look at properties. Could you please advise how we can obtain a mortgage? Thank you in advance. John Baranyi
Hi John,
We are also Canadians who moved to the US last year. We came here on a work visa, so I am not sure if your situation would be considered the same as ours?
We moved to Colorado and the whole mortgage process for us was an absolute nightmare to say the least. Because we did not have a credit history in the US (even though our credit in Canada was phenomenal) - the two countries even though neighbours do not share this type of information. Even though the credit companies like TransUnion etc. are in Canada and the US, they do not and will not share information, so if you ask the company here to run your Canadian credit they will not and say they have no jurisdiction over this.
It took us about two months to find a company (Broker) who would help us. The lender (GMAC) ran our Canadian credit reports (through their credit agency) and we had to do dual calls between Canadian utility companies, our bank in Canada etc.
Eventually they gave us a mortgage, but it was very stressful and lots of going back and forth. We were putting a good down payment too and financial organisations in the US don't really care about that. We found out that the more debt you have the more money the banks will give and if you have a good percentage to put down on a property they think you are 'dodgy'!
I heard that in places like Florida and Arizona that it may be easier to get credit as there are more Canadian snowbirds there so the banks have more experience of dealing with cross border arrangements. I hope for you this is the case.
Wishing you and your wife the best of luck with everything. Mamma Midas
We are also Canadians who moved to the US last year. We came here on a work visa, so I am not sure if your situation would be considered the same as ours?
We moved to Colorado and the whole mortgage process for us was an absolute nightmare to say the least. Because we did not have a credit history in the US (even though our credit in Canada was phenomenal) - the two countries even though neighbours do not share this type of information. Even though the credit companies like TransUnion etc. are in Canada and the US, they do not and will not share information, so if you ask the company here to run your Canadian credit they will not and say they have no jurisdiction over this.
It took us about two months to find a company (Broker) who would help us. The lender (GMAC) ran our Canadian credit reports (through their credit agency) and we had to do dual calls between Canadian utility companies, our bank in Canada etc.
Eventually they gave us a mortgage, but it was very stressful and lots of going back and forth. We were putting a good down payment too and financial organisations in the US don't really care about that. We found out that the more debt you have the more money the banks will give and if you have a good percentage to put down on a property they think you are 'dodgy'!
I heard that in places like Florida and Arizona that it may be easier to get credit as there are more Canadian snowbirds there so the banks have more experience of dealing with cross border arrangements. I hope for you this is the case.
Wishing you and your wife the best of luck with everything. Mamma Midas
Good evening Mamma Midas,
Thank you for the information, it is something to think about. We may end up just going a little smaller and buying the property outright if we can not find an institution that will lend us the money. Once again, thank you! John
Thank you for the information, it is something to think about. We may end up just going a little smaller and buying the property outright if we can not find an institution that will lend us the money. Once again, thank you! John
we bought a second home in arizona as well, we live in alberta. we went through RBC, extremely fast process, we were approved in two days. They won't let me post the link but google royal bank canada US mortgage for canadians