A Short Primer To Get A Canadian Commercial Mortgage In The US

Owning a commercial character in the United States is the dream of almost every Canadian citizen living in the USA. Many of them have no idea of how to acquire a commercial finance or mortgage. Certainly, purchasing a commercial character in the US presents its own challenges, if you are not a US citizen, rather a Canadian. As per a survey by the National Association of Realtors (NAR), more than half of the character transactions are done in cash in the US.

However, commercial mortgage lenders are willing to extend credit to Canadian citizens on attractive terms. Sometimes these lenders already provide credit to them without a credit history in the US. Getting a commercial mortgage depends on the residential position of the Canadian citizen. Canadian borrowers can be categorized into the below categories based on their residential position.

  • Non-long-lasting residents with a valid Work Visa (G1-G4, E1, E2, H1B, L1, H3, H2B, and H2A)
  • long-lasting Residents with a Green Card (form 1-551)
  • Foreign nationals whose residence is not in the US

Paying for mortgage

If you are a Canadian citizen who wants to buy a commercial character in the US, then be prepared to pay more for your commercial mortgage as US mortgages are compounded monthly as opposed to commercial mortgages in Canada which are computed semi-yearly. In addition to this, there may also be tax deductible in the United States for its long-lasting Residents. while, there is no such tax deductible obtainable for Canadian citizens interested in purchasing a commercial character in the United States by getting commercial mortgage finance.

How to apply for Canadian citizen mortgage?

Canadians can apply for a commercial loan in the US remotely via Email or phone, if they do not mind a few long distance charges. Most of the lenders and brokers strongly recommend that Canadian citizens should have a US business bank account via a ITIN (individual tax identification number) in order to ease the funding of finance and move of the down payments for the closing.

Some of the reputed lenders offer secured mortgages of up to 75% of loan-to-value (LTV) at very competitive interest rates. Canadian citizens can avail such finances in all 50 states of US. In order to reach maximum client satisfaction, such transactions are closed in 30-45 days. The closing of Canadian citizen mortgage should be done in person in the United States, preferably at the offices of the commercial loan lenders.

Documents required for processing of the mortgages?

  • Legible copy of valid Canadian passport
  • Copy of Canadian Credit History Report
  • Fully executed legible buy and sale contract which is signed by all the parties
    Verification of funds or place
  • 3 months bank statements showing that they have enough funds for a buy
  • Personal Financial Statement stating Assets & limitations
  • specialized Reference Letter from CPA & Personal Banker
  • Bio or begin again on the Sponsor outlining past ownership and experience managing such sizable investment
  • character if more than a $1M.+ investment
  • Real Estate Schedule of Existing Real Estate Owned In The U.S or Canada
  • Copy of U.S Individual Tax Identification Number
  • Copy of Earnest Money place or Escrow Letter
  • Canadian dominant Residence

The final thought

Many commercial loan brokers and mortgage lending companies in the US offer commercial loans to Canadian citizens after verifying their financial track record, residency position and work history.

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