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Jonathan Dalton
REALTOR
ePro, SFR
602-502-9693

Canadian Buyer Needing Financing? The News Isn’t Good

Canadian Buyer Needing Financing? The News Isn’t Good

avatarthumbnail.jpgFinancing for foreign nationals always has been tricky. As of yesterday, it may have become impossible.

My last lender who was able to close loans for Canadians told me (and a client yesterday) that he can’t get any more loans through. Apparently, the loans that were made to foreign nationals were defaulting at a hefty rate and the few ruined the party for the many.

I started looking at other lenders I’ve recommended in the past but the word seems to be just about universal. Hard money may still be a possibility but that’s a rather ugly way to go.

So if you’re looking to buy here in the States, the main method you have left is to finance at home via an equity line or similar vehicle and come down with cash.

[tags]Phoenix real estate[/tags]

Comments

  • I have never done a loan for someone from another country. I always wondered how much extra paperwork might be involved, especially if the person was from a country farther away than Canada. I guess I will never know considering the latest news you just posted.

  • Jerry says:

    Hi Johnathan,

    Based upon my experience of the last six months, I found four vendors willing to provide me with a loan, and yes, I am Canadian.

    I actually don’t remember the three that I did not go with, but by far the best one to deal with is RBC USA Bank. RBC, as any Canuck will know, is short for Royal Bank of Canada.

    Back in the late 90’s RBC invested in the US buying first, Security First Network Bank, and then Centura. As a SFNB bank client at the time, it was a shame, as SFNB was far better without RBC, but that’s another story.

    But in the last few months, RBC bank did indeed provide me with financing. More recently, RBC provided a colleague with financing as well.

    And most importantly, their rates were FABULOUS. A percent of better lower than the competitors.

    So rather than telling Canadians that they can’t get financing, which will only hurt your chances of making a sale, you might indicate it seems to be harder. But to discourage them all together probably won’t help.

    To other Canadians I have but one bit of advice. “Don’t be a chicken”, as I think Canucks are inclined to be, and go and try it. Buying a house in Phoenix is not hard, and there’s not anything particularly different about it than buying a house in Calgary. I believe it is a unique, and tremendous opportunity to buy something in Arizona. Sure there are things to be considered, like Estate Taxes, and Taxpayer ID’s, but once you learn a bit, they are not show-stoppers.

    Jerry

  • Good stuff, Jerry … I’m going to pull this out for a separate post later.

    Someone mentioned RBC to me yesterday; one of the quirks is for all the Canadians I’ve dealt with, only one or two have financed. Most are financing there and coming here with cash. So when the last of the lenders I trusted said they were done, I thought we all were done.

    Glad to know it’s not that dire. Thanks for reading!

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