Please note that policies are dynamic and can change at any time. Additional information may be required depending on your clients’ personal circumstances.
1. Mortgages are available up to 80% loan to value. Typically, 35% down is standard and offers the most lender choice. Some lenders have maximum loan amounts and sliding scales.
2. A credit application along with income confirmation is required with 2 years tax returns, employment letters and pay-stubs. At 50% loan to value, income confirmation may sometimes be waived.
3. Confirmation of down payment is required. Some Lenders will ask that funds be in Canada 30 days prior to possession.
4. Information on any properties owned need to be provided including mortgage statements, property taxes, and rental leases
5. A Canadian bank account is needed for payments. It is best for clients to plan to open an account while in Canada.
6. Credit Reference: Lenders will require a bank reference letter in lieu of credit report. A bank reference should include assets, payment history and any borrowing history. For US Residents, I will obtain a US credit Report from Equifax
7. Documents in other languages must be formally translated by a notary or Professional Translator.
8. Clients may have to be physically in Canada to sign their formal mortgage instructions with a Canadian solicitor 10-15 days prior to possession. Some lenders will not allow you to sign mortgage instructions outside of Canada. All parties on title and mortgage must sign in Canada and no Power of Attorney’s allowed. No exceptions are usually granted. Plan your possession date with care.
Information provided by Trish Isaac, Mortgage Solutions.