Real estate in Canada may no longer be cheap, but real estate south of the border is on sale. Canadians know it, and are using their powered-up loonie to snatch the bargains.
Anecdotally speaking, Canadian interest in U.S properties has doubled in the last year. On our site too, Canadian inquiries about U.S. mortgages have soared recently.
We continue to hear of U.S. homes selling for fractions on the dollar. Our partners in Florida, for example, tell us that home inventories there keep rising. As a result, average “days on market” are now 4-months+ in many places. Most sellers are very open to negotiation.
Many Canadians are even finding values in beachfront, ski-resort, or golf-resort condos, and renting them out when they’re not there. (Be warned, the rental market down there is tough right now).
The downpayment for Canadians seeking U.S. mortgages ranges from 25% to 10% depending on the rate and terms. Closing costs are often 2-3 times what they are in Canada, however–where 1.5% is the norm.
For a good overview of the U.S. mortgage process, talk to a top U.S. mortgage planner. If you need a referral drop us an email.
Side Bar: If you own U.S. real estate and have worldwide assets over $2 million you’re subject to U.S. estate tax when you die. Yes, even if you’re a Canadian citizen and resident. Fortunately there are solutions according to the Financial Post.
In addition, if you generate U.S. rental income you have to report it in both countries. You won’t be double-taxed, however, according to the Edmonton Journal.
Press ESC to close
Get The Latest News
Join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.