US Financing for Canadians

[Steven Darrow]

I've been calling around to some US banks this week to see what they offer to Canadian residents in terms of financing US property. Here's what I've learned so far:

BMO Harris - Will loan up to 70% LTV on second home (he basically told me you don't tell them it's an investment property & the won't check). They typically don't like to do loans for less than $100k, but they don't have a policy of any specific minimum. The kicker is that you need to have a $25,000 "relationship account" with them at time of closing. They're not clear on how long the account must be in place, but it must be there at closing and can't be your deposit on the home purchase.

TD - Will loan on investment properties along the eastern seaboard (Maine to Florida, excluding Georgia). They say they will lend up to 75% LTV with no loan minimum. Although, I don't have a lot of confidence in the rep I was talking to…not sure if she knew what she was talking about.

Express Capital Mortgage Inc. - Will loan on 1 property only. 50% LTV, min. $50k loan. Can do any state except for Nevada.

RBC - Will loan up to 60% LTV on investment properties, 80% on second home. Minimum loan of $75k. Will only loan on 1 property, maybe 2 under rare circumstances

I'll continue to update if I find any others. Feel free to share if you have any that I've missed.

[Jared Rine]

From my own experience being on the CRE financing end, and dealing with Canadians it's definitely easier to find financing for larger loan amounts, or deals over $1MM.

TD Bank is pretty solid and what that rep said is basically true, even if she didn't sound like she knew what she was doing. We have a solid relationship with them and just utilized them to close a recent retail strip center purchase.

Other than that, it's a really large space that no one is touching, especially for under $1MM loans - unless you want to go hard money. There aren't really any banks wanting to write non-recourse loans, especially in the smaller commercial loan amount area or even investment SFRs.

Currently working on a $600k multifamily purchase loan for some Canadian investors @ 60 LTV, 10%, 3 yr I/O, 12 month PPP. That's not a bank, but a lender we are working with on carving out a "subprime" type program with non-recourse loans.

Felt I should share.