Non-Resident & Foreign Income Mortgages

Our non-residents mortgage program allows all home buyers who are Canadian citizens, permanent residents, or foreign residents residing outside of Canada to qualify for a mortgage.

Criteria for our non-residents mortgage program:

• You reside outside of Canada for 6 months or more a year
• You reside in Canada as a non-resident
• You file your taxes in a different country outside of Canada
• You earn a foreign income from an international source outside of Canada

Our non-residence mortgage program allows you to confirm your credit worthiness in a variety of ways. As a pose to the traditional requirement of the Canadian credit bureau, a non-resident may qualify by providing one or more of the following credit resources:

• A Canadian and/or international credit bureau showing your credit history and your ability to make payments on time.
• 6 months verifiable bank statements from a recognized Canadian financial institution or from a financial institution in the country of origin showing your ability to pay down debts.
• 6 months verifiable credit card statements from a recognized Canadian financial institution or from a financial institution in the country of origin showing your ability to pay down debts.
• A letter of reference from your financial institution in the country of origin confirming a minimum 6 months satisfactory banking relationship.

The purpose of these credit statements are to show your ability to pay your debts on time, forming an alternative solution to helping you get into the home of your dreams.

• When purchasing your new home from an international location, you will have the option to sign your final documents remotely with your legal team.
• While there are restrictions and conditions to what documents are required as proof of ID, it’s important you speak with one of our mortgage advisors at Boychuk Mortgage Group to ensure we can help you meet those criteria ahead of time.

Standard income documents will be required under the non-residents mortgage program.

Those standard income documents include a current pay stub, an annual earned income statement from your country from the past two years, and a letter of employment confirming how you’re paid, length of employment at your company, and confirmation that you are not on probation.

The first step is to reach out to one of our trusted mortgage advisors for your free, no obligation discover call.

• During your discovery call, we discuss your unique financial situation, your property objectives, your borrowing capacity, detail the steps in the home buying process, and advise on any hurdles you may encounter to help pave the way for a smooth home buying experience.
• This initial step provides clarity for common questions or concerns. We even go through some “what-if” calculations and scenarios to help ensure a strong understanding of your options. A detailed action plan is then prepared, giving you the confidence needed to move forward with certainty.

The second step would be to collect a formal mortgage application, credit consent form, and a checklist of lender required documents in which you can safely upload into your mortgage portal. Once complete, the heavy lifting on your end is done and we will proceed with setting up your new pre-approval.

The third step is to work with a trusted real estate agent to help you find your new dream home. With a strong understanding of how much you can borrow, the fun part begins as you are now ready to start the home search process.

Non-residents of Canada, individuals earning foreign income, and those with international assets looking to purchase property in Canada are eligible for these specialised mortgages. Whether you are temporarily residing outside Canada, filing taxes in another country, or earning income from global sources, Non-Resident & Foreign Income Mortgages provide a pathway to homeownership in Canada.

• For U.S. residents, a minimum down payment of 20% is generally required.
• For those living anywhere outside of Canada and the U.S. who file their taxes outside of Canada, or earn a foreign income, you will be required to have a minimum down payment of 35%.
• It is important to note that your down payment is required to be from your own source and to be available in a Canadian bank account prior to the completion of your new mortgage.
• In certain circumstances, some lenders will require one full year of mortgage payments to be set aside in an account under a Canadian financial institution before approval.

To apply for a Non-Resident & Foreign Income Mortgage, you typically need to provide proof of non-residency, such as a valid passport and visa, foreign income verification through employment contracts or tax returns, identification documents, and details of the property being purchased. Documentation requirements may vary slightly among lenders but generally focus on establishing your financial eligibility and residency status.

Yes, rental income generated from the property in Canada can be considered when qualifying for a Non-Resident & Foreign Income Mortgage. Lenders assess rental income to determine your ability to service the mortgage payments and may consider a percentage of the rental income as part of your overall income calculation, subject to their specific guidelines and requirements.

Lenders typically convert foreign currency income into Canadian dollars using prevailing exchange rates to assess your mortgage eligibility and affordability. It's important to provide documentation that accurately reflects your foreign income in Canadian dollar equivalents to facilitate the mortgage approval process.

Non-Resident & Foreign Income Mortgages generally finance residential properties, including single-family homes, condominiums, and vacation properties. While residential properties are commonly financed, commercial properties may have different financing requirements and eligibility criteria based on the lender's policies and regulations.

To begin the application process for a Non-Resident & Foreign Income Mortgage, contact Boychuk Mortgage Group to schedule a consultation with one of our experienced advisors. During the consultation, we will assess your eligibility based on residency status, income sources, and financial documentation. Our advisors will discuss available mortgage options, guide you through the required documentation, and provide expert support to facilitate a smooth and successful application process.

For more information on the foreign buyers ban please click the resource below:

• https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/consultations/prohibition-purchase-residential-property-non-canadians-act?guide=EXCEPTIONS%20CONTAINED%20IN%20THE%20ACT%20AND%20REGULATIONS

• https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/consultations/prohibit