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Owning a commercial property in the USA is the dream of almost every Canadian citizen living in the USA. Many of them have no idea how to get business financing or a mortgage. Certainly, buying a commercial property in the United States presents its own challenges, if you are not a US citizen, but rather a Canadian. According to a survey by the National Association of Realtors (NAR), more than half of real estate transactions are made with cash in the United States.
However, commercial mortgage lenders are willing to offer credit to Canadian citizens on attractive terms. Sometimes, these lenders extend credit to them without a credit history in the United States. Obtaining a commercial mortgage depends on the housing situation of the Canadian citizen. Canadian borrowers can be classified into the following categories based on their housing status.
- Non-permanent residents with a valid work visa (G1-G4, E1, E2, H1B, L1, H3, H2B, H2A)
- Permanent Residents with a Green Card (Form 1-551)
- Foreign nationals who reside outside the United States
Mortgage payment
If you are a Canadian citizen who wants to buy a commercial property in the US, be prepared to pay more for your commercial mortgage as US mortgages are doubled monthly unlike commercial mortgages in Canada which are calculated semi-annually. In addition, there may also be a US tax deduction for permanent residents. Whereas, no such tax credit is available to Canadian citizens who are interested in purchasing commercial real estate in the United States by obtaining commercial mortgage financing.
How do you apply for a Canadian mortgage?
Canadians can apply for a business loan in the US remotely via email or phone, if they don’t mind paying some long-distance fees. Most lenders and brokers strongly recommend that Canadian citizens have a US business bank account via an ITIN (Individual Tax Identification Number) in order to facilitate financing financing and transfer of closing advance payments.
Some of the reputed lenders offer secured mortgages of up to 75% loan-to-value (LTV) at very competitive interest rates. Canadian citizens can benefit from these financial resources in all 50 US states. In order to achieve maximum customer satisfaction, these transactions are closed within 30-45 days. The closing of a Canadian Citizen Mortgage must be done in person in the United States, preferably at the offices of the commercial loan lenders.
Documents required for processing mortgages?
- A clear copy of a valid Canadian passport
- A copy of your Canadian credit history report
- Clear and fully executed sale and purchase contract signed by all parties to verify funds or deposit
- A 3-month bank statement showing that they have sufficient funds for the purchase
- A personal financial statement showing assets and liabilities
- A professional reference letter from a CPA & Personal Banker
- A resume or resume on the sponsor outlining previous ownership and experience in managing such a large investment
- Ownership if it is more than a million dollars + investment
- Real estate table for existing properties owned in the United States or Canada
- A copy of your US Individual Tax Identification Number
- A copy of the cash deposit or letter of guarantee
- Primary Canadian residency
final idea
Many commercial loan brokers and mortgage lending companies in the United States offer business loans to Canadian citizens after checking their financial history, residency status, and work history.
