Comments on: Buying a second home in the United States as a Canadian

By: Alyssa

Alyssa — Thu, 22 Apr 2010 21:56:10 +0000

We purchased a home last year in SC. We used RBC and made a 20% downpayment, just a few months after Fanny May and Freddy Mac crashed.

I just wanted to point out a huge difference that’s left out of the article above, which is a contrast between buying property in the two countries.

MORTGAGE RATES: There are no accurate posted rates. You cannot look up what your bank’s rate would be. The bank sets your individual rate based on your individual credit and circumstance.

CLOSING COSTS. There is a massive difference. Closing costs include a bunch of bank fees we don’t have. But more importantly, they include your first year’s insurance and property taxes rolled right in. This means you have to declare exactly what you intend to use the property for IMMEDIATELY.

We bought our place for friends and family to use as well as us – so it would be for personal use but only occupied part of the time. Suddenly, 35 days after closing (over Christmas when we would not travel away from our kids) , we got a letter from our insurance company stating that our insurance was cancelled because they had done a spot inspection (at 15 days in!) and when they looked in the windows, they saw no furniture, therefore we were not being forethcoming.

When I phoned them to explain that it has only been 35 days and that we had not been down there yet with is being Christmas, nevermind had a chance to get furniture, they said too bad and that we had to get insurance for a empty home – which is higher. So we had to buy a 3 month policy and then change it after 3 months. And our “credit” with the insurance company was damaged because we has supposedly not been honest with them, so our rate went up!

By: Elvis

Elvis — Wed, 03 Mar 2010 20:28:15 +0000

Hi, I’m in the process of setting up business and subsequently a home in Texas. Being a Canadian citizen and owning property throughout the states are there any additional steps that need to be taken to ensure smooth boarder passage each time I want to go down?
I don’t plan on spending much more than 3 months of the year there.
Thanks

By: kevin

kevin — Wed, 10 Feb 2010 22:39:49 +0000

Hi, my wife and I would like to purchase vaction home in the Pheonix area. We were wondering if you could tell us if there’s any visa requirement for Canadians in order to aquire residential property in the US? We have the snowbird concept in mind here. Where to start? Any information, or links regarding this topic would be greatly appreciated. Thanks in advance.

By: Christoph

Christoph — Tue, 09 Feb 2010 01:00:05 +0000

Kim, doing loan products for foreign nationals are pretty limited right now. There are some lenders who loan on second homes to foreign nationals in Arizona – and they require a minimum of 25% down. I am not doing business in Florida and don’t have an answer for you. You might want to contact Gerry Suarez.

http://activerain.com/blogs/gsuarez

By: Jamie

Jamie — Tue, 09 Feb 2010 00:08:33 +0000

Hello,
My situation is a little complicated. I am looking into buying a property in Newport, RI with my common law partner and her sister. She is a US citizen, but a landed Canadian resident. Her sister lives in Newport and will be living in the house. We would be staying in Toronto, but want to take advantage of low housing prices as an investment.
My “sister in law” will be applying for the mortgage and I will be a cosigner (if that is the best solution). I also have a corporation that I would like to put the downpayment through. Is this possible when I will be a partner in the purchase and not the sole owner. And, is this the best way financially to go about purchasing in the US with my current situation?

By: Kim

Kim — Sat, 06 Feb 2010 16:35:41 +0000

Hello,
I am a Canadian looking to buy a vacation condo in Florida. I am looking at buying with my fiance as well as my parents. We are all Canadian and have homes in Canada already. This would be a vacation home for all of us and we would hope to rent it out once in a while for help towards the mortage. It appears that we can not get a Canadian mortgage without using the equity in our homes, which we do not want to do. That would leave us to get an U.S. mortgage from my understanding. Where do we start with this? And what are all of the things that we need to consider?
Thanks so much for your help.

By: Murphy

Murphy — Wed, 03 Feb 2010 17:37:57 +0000

I am a Canadian citizen and just sold my vacation home in the US. I have never worked or lived in the US except to vacation. A 10% withholding applied to the sale because I was a foreign national. Should I get a US tax ID #, what would be the advantage in getting it? I am required to file a US tax return? What about a Canadian return on the monies? Any help would be appreciated.

By: Khokan Das

Khokan Das — Sun, 05 Apr 2009 12:52:03 +0000

I am a canadian citizen want to buy a property in Florida to rent it out for the time being until I am ready to live in 5-6 years.

My question is; Is there any agency or firms I can work with to buy and rent out the property. And if so normally how much do they charge. Also If I want to sell the property what is the tax implication I should be careful about.

Your response would be highly appreciated,

Regards.

Khokan Das

By: Debby Ashmore

Debby Ashmore — Sat, 07 Mar 2009 18:54:35 +0000

I am a single woman living and employed in Canada. Recently had the opportunity to visit the Phoenix area and loved it and now would like to have a second home there. I would let other family members use it when I was not there but mostly it would be for me as an investment towards my looming retirement. What should I know before I purchase anything. I would be looking at financing it in Canada. What happens if I have to sell it in a couple years? Are there any costs associated with Canadians owning property.
I would love to open a business there as well but I think that is likely an immigration problem correct?

By: Ryan Turgeon

Ryan Turgeon — Tue, 13 Jan 2009 12:58:37 +0000

I am looking at buying in the Phoenix area I am Canadian Citizen applying for HB1 @ moment I have good credit on my international credit is about 700 what kind of percentage am I looking at putting down I have been also employed with a company out of Houston texas for a year and a half

Thanks Ryan