[ad_1]
Owning a commercial property in the United States is the dream of almost every Canadian citizen who lives in the United States. Many of them have no idea how to get commercial finance or mortgages. Certainly, buying a commercial property in the US 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 property transactions in the US are done in cash.
However, commercial mortgage lenders are willing to offer loans to Canadian citizens on attractive terms. Sometimes these lenders offer credit even to those without a credit history in the US. Getting a commercial mortgage depends on the residential status of a Canadian citizen. Canadian borrowers can be classified into the following categories based on their residential status.
- Non-permanent residents with valid work visas (G1-G4, E1, E2, H1B, L1, H3, H2B and H2A)
- Permanent Residents with Green Cards (Form 1-551)
- foreign nationals not resident in the United States
paying off the mortgage
If you are a Canadian citizen looking to buy a commercial property in the US, be prepared to pay more for your commercial mortgage because US mortgages compound monthly, unlike commercial mortgages in Canada, which are calculated semi-annually. is done formally. Additionally, the United States may also have tax deductions for its permanent residents. Whereas, no such tax deduction is available to Canadian citizens interested in purchasing commercial property in the United States by obtaining commercial mortgage finance.
How to apply for a Canadian Citizen Mortgage?
Canadian residents can apply for business loans in the US remotely via email or phone if they don’t mind some long distance charges. Most lenders and brokers strongly recommend that Canadian citizens have a US business bank account via ITIN (Individual Tax Identification Number) to facilitate the financing and transfer of the down payment for closing.
Some reputable lenders offer secured mortgages of up to 75% loan-to-value (LTV) at very competitive interest rates. Canadian citizens can avail this type of finance in all 50 states of the US. To achieve maximum customer satisfaction, such transactions are closed in 30-45 days. The closing of a Canadian citizen mortgage must be done in person in the United States, preferably at the offices of commercial lenders.
Documents required for processing the mortgage?
- Legible copy of valid Canadian passport
- Copy of Canadian Credit History Report
- Fully executed legible purchase and sale contract signed by all parties, verification of funds or deposits
- 3 months bank statement showing they have enough funds for the purchase
- personal financial statement stating assets and liabilities
- Business reference letters from CPAs and personal bankers
- Bio or resume on sponsor outlining previous ownership and experience managing such large investments
- Assets if greater than $1M.+ investment
- Real estate schedule of existing real estate owned in the US or Canada
- Copy of US Individual Tax Identification Number
- Earnest money deposit or escrow letter copy
- Canadian primary residence
final thoughts
Many commercial loan brokers and mortgage lending companies in the US offer commercial loans to Canadian citizens after verifying their financial track record, residency status and work history.
[ad_2]