Changes in Lender Requirements for Canadian Buyers

Jonathan Dalton, Phoenix Real Estate AgentThis won’t impact many Canadian buyers here in the Phoenix real estate market, the bulk of whom are arranging financing in the Great White North and coming to the Valley with cash, but for those financing locally some changes took place this weekend.

Brian Brady sent along a note that lending requirements for Canadian buyers have become more strict:

  • 40% down payment required (vs. 30% previously)
  • Copy of Canadian passport required
  • Lender needs to be able to track down payment money
  • Appraisal required
  • Title report required

Yes, folks, some homes still were being financed without an appraisal based on the type of loan being acquired. Consider this another blow to the myth that an appraisal is anything more than the bank assessing their risk versus a statement of a property’s inherent value.

Brian also indicated rates for Canadian buyers are in the 6.75% to 7.25% range – if you’re being quoted something significantly lower, say in the 5’s, something most likely is fishy.

[tags]Phoenix real estate, Canadian buyers Arizona real estate[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at


  • sfvrealestate 10 years ago

    Jonathan, this is a little OT, but: I’m a So Cal Realtor who is originally from Phoenix. I visit the west side of Phoenix often, and was there three separate times in April. Now, as I read the national news, I expected to find for sale and foreclosure signs all over. I didn’t see that at all — just an occassional for sale sign, perhaps one every two or three blocks. That looks kinda normal to me. So, where’s all this real estate gloom and doom I keep hearing about? Perhaps in outlying areas?

  • Jonathan Dalton 10 years ago

    Hi, Judy … thanks for stopping in! I’m the opposite of you – originally from Panorama City and now here for 31 years.

    There’s plenty of inventory – it depends where you are. A lot is in the outlying areas but it can be found most places. But it’s not nearly what it’s made out to be. I’m expecting to see inventory rise this week for the first time in a month and there still are homes selling.

    The world has not ended quite yet here. Well, unless you’re a Suns fan.

  • Larry Yatkowsky 10 years ago

    Canadians won’t be uneasy with the identification requirements. Starting June 8th/08 all sales and purchases require:
    a drivers license for the province or
    a birth certificate for the province or
    a passport.

    Federal law declares that we as Realtors will be required to record the document number, photo copy and submit. We must witness that we have seen the document and have either the buyer, seller or both (dual agency), sign the registration document.
    We are now Realtor Police. All part of post 9/11.
    Our next challenge is to learn how to use a Light Sabre.

  • Jonathan Dalton 10 years ago

    Why would they put that on the Realtors? Seems like that would be a requirement more appropriate for escrow folks or the notaries, as it is here.

  • Larry Yatkowsky 10 years ago

    What’s appropriate?

    They also require our banks to do the same as well as the lawyers/notaries. It’s a triple check.

    The sad part is the even if I have known you for 30 years you are bound to complete this document.

    A twist of irony is, if you are acting for a bank (who acting as the trustee) who is selling the property they too must complete this document as a corporation which is to include their registered incorporation number and is to be signed by a senior official.

    The terms of reference are:

    The following is a summary of the legislative requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, (PCMLTFA) applicable to real estate brokers or sales representatives when they engage in any of the following activities on behalf of any person or entity in the course of a real estate transaction:
    • Receiving or paying of funds
    • Deposit or withdrawal of funds or
    • Transfer of funds by any means

    It’s a mad mad world.