Mortgages for Non-Resident Investors
If a person living outside of Canada wishes to apply for a mortgage in Canada, they will be treated as a non-resident. This can even apply to Canadian citizens who have been living abroad, do not earn income in Canada or, do not pay income taxes in Canada. If you are in this situation, you likely need the assistance of an advocate on your behalf to help get you the financing you need. Archie is on your side.
If you are a Non-Resident, the financial institutions see you as a greater risk. Accordingly, they will lend only as high as 65% to 70% at their best rates. If you wish to obtain up to 75% the interest rate charged will likely not be discounted by the lender as much (this is subject to the work permit section below). However, each lender will examine the mortgage application on a case by case basis. A banker's letter of reference provided by an applicant's previous bank or a credit report from the applicant’s country of origin may influence a lending institution with respect to both the approval of the mortgage application and the interest rate charged.
Typically for Non-Resident mortgage applications, the economic rent, as indicated in the appraisal which must be done as part of the financing requirements, must be sufficient to cover the costs of financing the mortgage (i.e. the monthly mortgage payments).