Hi there,

My husband and I are considering buying a condo or "purchased
apartment" in Montreal, QC Canada, but we're unsure of our options for
getting a mortgage. We have visited Montreal a number of times and
would like a small place there to vacation in, share with family &
friends, and rent out.

We are familiar with getting a mortgage in the US for US-based
property...been there, done that. What we are not sure about is if a
US bank will loan us money to buy a property outside the US.

So our questions are:
Will a US bank fund a condo/property purchase in Canada?

Would it be easier, or will it be required, that we find a bank with
branches in both countries?

If a US bank is not an option, can we, as Americans, get accounts at a
Canadian bank and borrow money from them?

I know the questions overlap a bit, but I want to cover the options
we've thought of. Whoever out there knows the answer will likely come
up with more options, and we welcome them all (along with the
answers)!

Thanks much :)
C & D

Hi C & D,

1) "Will a US bank fund a condo/property purchase in Canada?"
- Yes, but they will use your U.S. assets.

NON-RESIDENT INFORMATION
For those purchasers who are not residents of Canada the following
information may be useful:
"Generally, Banks outside Canada are unable to lend money on Canadian
properties. If you want to finance your purchase in your home country,
you will have to use assets other than the Canadian property. For this
reason, most purchasers use the Canadian Financial Institutions to
finance up to 65% of the purchase price. The option is open to the
non-resident to borrow at home for the remaining 35%. "
http://www.whistlermortgage.com/non-residentinformation.asp

2) "Would it be easier, or will it be required, that we find a bank
with branches in both countries?"
- No.

3) "If a US bank is not an option, can we, as Americans, get accounts
at a Canadian bank and borrow money from them?"
- Yes. 

"But don't worry; you can overcome most problems once you have found
the house, cabin, cabana, or chalet of your dreams with persistence,
patience, and the right mortgage lender. You do have to make sure,
however, that you find real estate agents and lenders familiar with
the rules about non-residents buying property in their countries.
While this is fairly easy to do in Mexico and Canada, ... You might
check with the U.S. embassy in the country where you want to buy."
Another aspect of buying in a foreign country that shocks many
Americans is the size of the required down payment. To buy a house in
Canada, Miller says, " A 25 percent down payment is standard. It is
possible to get into a house with only a 20 percent down payment, but
the interest rates will be higher." Aside from that, Canadian
requirements are generally similar to the U.S. and the entire
transaction can be done in English. The one exception is in
French-speaking Quebec, where provincial law requires that legal
documents be written in French."
http://interest.buffalo.com/inside_article.asp?ID=2004115151410NLFPKGNSJJDWKVBIZIBDQKIFONYJWZ&type=daily

Canada
"Generally, mortgages are available to non-residents of Canada up to a
maximum of 65% of the purchase price of a piece of property. Higher
amounts may be obtained if the residence is purchased with a Canadian
citizen. For residents, loan-to-value ratio is 75% (as below). There
is a minimum loan amount of approximately $57,000. Fixed and variable
rate loans available, from 4%. Loans are available in Canadian dollars
only."
Max LTV%: 75%
Term: Up to 25 years
Lender: HSBC Bank Canada: www.hsbc.ca 
http://www.escapeartist.com/OREQ9/Global_RE_Financing.html

New Mortgages For Non-Canadian Residents
"We often negotiate superb mortgage loans on behalf of non-Canadian
residents. Many of our national Canadian lenders will provide an
approval on residential real estate with mortgage financing up to 65%
loan-to-value, i.e. min. 35% down payment or equivalent equity
(subject to applicant's net worth, cash-flow ability and credit
repayment history). All of the preferred mortgage terms and options
are available at very competitive interest rates."
"Most Canadian purchases are financed through Canadian institutional
mortgage lenders. Lenders usually request that you service your new
mortgage from a branch account within their organization.
"In many cases, Canadian credit agencies are not able to provide
personal credit information on Non-Canadian citizens. It may be
necessary to obtain such confirmation of credit worthiness from your
local banking institution. Verification of income and down payment
resources are also required."
http://www.canadamortgages.ca/newnoncanadianresidents.html

I was glad to find this for you. If you have any questions, please
post a clarification request *before* closing/rating my answer and
I'll be happy to reply.

Thank you,
hummer

Google Search Terms Used: non-resident mortgages canada

Woohoo! Your excerpts were more than sufficient, so the links are a
bonus. I especially appreciate the tidbit about the French documents
in Quebec, because that's where we'll be and we don't yet know a bit
of French. Also, thanks for the search terms...I didn't put in
"non-resident" (DUH!) so you can guess the flood of irrelevant links
that drove me to ask my questions here.

Have a great day, and enjoy the tip!

Since you have not received an answer yet, I will take a wild guess.
Most USA banks will not want to do businss with you, but a bank with
branches in both Montreal and the The USA might.
 There likely is a way to open an account in a bank in Montreal, but
they may not be interested in giving you a mortgage. Banks (and
finance companies)in boarder towns between USA and Quebec are more
likely to want your business.
 If you have a large down payment, the seller may be willing to let
you make monthly payments to the seller = owner financed/contract for
deed. You do need to determine that the seller has a clear title, and
is of good character before you give them the down payment. Leins
placed against the sellers property before you make the last payment
could cause much grief.   Neil

Try www.ingdirect.com they are an international bank with offices in
Canada they are much easier to deal with than most banks.

Neil--Great idea, a owner financed mortgage. Not something I had
thought of, and for something as small as a condo, probably would be
able to find someone up for the task. Hadn't thought about the border
towns, either. Where I crossed over into Canada, wasn't a whole heck
of a lot of anything, but I will be sure to check a map for the
closest US bank, US post office, etc. Thanks!

Mister2U--I had NO idea that ING was a worldwide bank. I see their ads
everywhere, and think they're clever, but thought they were just for
savings, not mortgages. When I called, they said each country has its
own ING, so accounts don't stretch over borders or link to each other,
but I think I am going to get an account with them on the Canadian
side anyway. Thanks for the suggestion!

I'm happy you are happy, C & D, and thank you for the nice note and
tip. Yes, I was glad to come upon the QC tidbit too. Something to
always keep in mind is that Quebec's "civil code" (French) is quite
different than the rest of Canada's "common law" (British).

Common law and civil law
"The Department's mandate means that its work covers both civil and
common law. In matters of property and civil rights, federal
legislation generally depends on Quebec civil law and provincial
common law. Common law is a system which originated in Great Britain
in which judges use precedents, or previous decisions, to guide their
decisions. Civil law, on the other hand, relies on a code that has a
set list of rules; judges look first to the code and then to past
decisions. Civil law was introduced into North America by the French,
and is embodied in the form of the Civil Code of Quebec. Common law is
used in the rest of Canada."
http://canada.justice.gc.ca/en/dept/pub/about/

Good luck with your French lessons. Although Montreal is a very
diverse city and you will be able to get by in English, you'll enjoy
it much more if you can learn French.

Good luck!
hummer