Can Canadians buy property in USA?
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- Updated On:07-Dec-2022
- Replies:1
Short Answer
Yes, Canadians can purchase a property in the United States of America, just like any US citizen does. In fact, it is reported that the top foreign purchasers of US property are Canadians.
Detailed Answer
Property Market in the United States (U.S)
The United States, Mexico and Canada are members of North American Free Trade Agreement. This allows Canadians to travel and stay in the United States for six months straight for any consecutive 12 months’ time, with simply a Canadian passport and without a US visa. It has been reported that the average cost of property in US is $298,933, whereas the average cost of property in Canada is $605,000 CAD. On converting this to US dollars, the average purchase price of Canadian property is $443,687 USD. Hence, it is profitable for the Canadians to purchase property in their neighboring nation.
Can Canadians buy property in USA?
Yes, Canadians are allowed to purchase a property in the United States of America. In fact, any foreign national can purchase a property in the United States of America. Having said that, Canada is the top most country whose citizens have purchased property in the US. As at March 2021, it has been reported by National Association of Realtors that 8% of foreign buyers in US is comprised of the Canadians. The Canadians have purchase nearly 8,800 properties for a total worth of approximately $4.2 billion USD. The average purchase price of Canadians is $400,900 USD.
It has been reported that top destination preference of the Canadians is Florida and the Canadians wish to purchase resort areas in the United States. It can be observed that Canadians purchase properties in the US as a holiday destination or a rental property whilst having their principal place of residence in Canada.
Types of Mortgages available for Canadians who wish to purchase a US property
US Mortgage
You can choose an American bank an apply for a mortgage. Since you are a foreigner for the US bank, you will be required to various documents for a stricter screening process. Documents required would be passport copy, international credit report, employment verification, residency status, tax returns, proof of funds, proof of income and evidence for the funds reserved as down payments.
Cross Border Mortgage
You can opt for a Canadian bank that has its branch in the United States and apply for your mortgage. This is an easier process.
U.S Property for Canadians
In the 6 months you are allowed to stay in the US as a Canadian, it is important that you estimate a budget, source funds for down payments, narrow down on the property to be purchased, choose your mortgage provider, lock the interest rate, get approval of the loan, conduct property appraisal, and finally purchase your desired property in the US.
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Discussion (0)
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