This 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]