Purchasing and Financing For Canadians

♦ I am originally from Canada and am proficient in the real estate language, laws and customs of both countries – i can guide you through the differences and the necessary strategies for investment ♦

If you’re investing in the US there are a number of considerations which will depend on your intended use of the property … including whether or not to incorporate, FIRPTA considerations, and other issues.  I recommend obtaining professional advice before making any hard decision, but I have access to the resources you need.

For instance … there may be distinct tax advantages for a Foreign Investor to use an LLC – at present, the the tax rate compared to personal rates would ostensibly drop from 30% to 15%, and taxes levied in the United States should likely be credited against related tax liability in the investor’s domicile country.  A Foreign Investors requires an ITIN number, which is more easily obtained in conjunction with the filing of the first tax return for the LLC – an EIN number is obtained right away in order to open a bank account and arrange utilities.

If you would like financing, there are no hard and fast rules, but generally speaking this is what you’re probably facing:

#1 It can be for a second home purchase only, and usually around 65% loan-to-value ratio – thus usually requiring a 35% down payment.

#2 You’ll need a satisfactory Canadian credit bureau report.

#3 You’ll need full income and asset documentation (expressed in US Dollars), together with 2 years of tax returns (and profit and loss statement if self-employed).