A Brief Guide to Getting a Canadian Business Mortgage in the US

Owning commercial property in the United States is the dream of almost every Canadian citizen living in the United States. Many of them have no idea how to obtain commercial financing or a mortgage. Certainly, buying commercial property in the US presents its own challenges, if you are not a US citizen, but a Canadian. According to a survey by the National Association of Realtors (NAR), more than half of real estate transactions are done in cash in the US.

However, commercial mortgage lenders are willing to extend credit to Canadian citizens on attractive terms. Sometimes these lenders even extend credit to them without a credit history in the US Obtaining a commercial mortgage depends on the residential status of the Canadian citizen. Canadian borrowers can be classified into the following categories based on their residential status.

  • Non-permanent residents with a valid work visa (G1-G4, E1, E2, H1B, L1, H3, H2B and H2A)
  • Permanent Residents with Green Cards (form 1-551)
  • Foreign nationals whose residence is not in the US

mortgage payment

If you are a Canadian citizen looking to purchase commercial property in the US, be prepared to pay more for your commercial mortgage as US mortgages are compounded monthly compared to commercial mortgages in Canada which are compounded semi-annually. In addition to this, there may also be deductible taxes in the United States for your Permanent Residents. Whereas there is no such tax deductible available to Canadian citizens interested in purchasing commercial property in the United States by obtaining commercial mortgage financing.

How to apply for a Canadian citizen mortgage?

Canadians can apply for a business loan in the US remotely by email or phone, if they don’t mind some long distance charges. Most lenders and brokers strongly recommend that Canadian citizens have a US business bank account through an ITIN (Individual Tax Identification Number) to facilitate financing financing and transferring down payments for the closure.

Some of the big-name lenders offer secured mortgages up to 75% LTV at very competitive interest rates. Canadian citizens can take advantage of such finances in all 50 US states. For maximum customer satisfaction, such transactions close within 30-45 days. A Canadian citizen’s mortgage closing must be done in person in the United States, preferably at the offices of commercial loan lenders.

What documents are necessary for the processing of mortgages?

  • Legible copy of valid Canadian passport
  • Copy of Canadian credit history report
  • Legible purchase agreement fully executed and signed by all parties Verification of funds or deposit
  • 3 month bank statements showing they have sufficient funds for a purchase
  • Personal financial statement indicating assets and liabilities
  • Personal Banker and CPA Professional Reference Letter
  • Sponsor biography or resume outlining previous ownership and experience managing such a sizeable investment
  • property if it is more than $1M.+ investment
  • Real Estate List of Existing Real Estate Owned in the US or Canada
  • Copy of US individual tax identification number
  • Copy of earned money deposit or escrow letter
  • Canadian primary residence

the final thought

Many business loan brokers and mortgage loan companies in the US offer business loans to Canadian citizens after verifying their financial history, residency status, and employment history.

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