We’re hearing from contacts south of the border that the biggest U.S. lender for foreign nationals is tightening up its loan criteria. Among other things, maximum loan-to-value for most Canadians buying in the U.S. is expected to drop to 65% from 75%.
In addition, it is becoming extremely difficult, if not impossible, for foreign nationals to refinance or get mortgages on investment properties (at anywhere close to decent rates).
All of this has been brought on by declining U.S. property values and foreclosure activity. It’s becoming tougher and tougher to securitize mortgages held by foreign nationals, despite much lower than normal delinquency rates versus U.S. citizens.
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