Equity Mortgages BC & Foreign Investors from China Greece & Russia
The foreign real estate investing is not a new concept in the Canadian real estate market. For many years now China has been one of the leaders in the Vancouver Real Estate market but there are two emerging competitors due to the financial uncertainty in Russia & Greece. Article MortgageBrokerNews.ca
With the banks stricter mortgage rules where will this leave foreign &/or non resident real estate investors if they can’t provide adequate assets or down payment to satisfy banking guidelines?
Non Resident Equity Mortgage Solutions
Some Banks require 35% and in some cases 50% as a down payment under their policies. Non Resident can get approved by using a Non Resident Equity Mortgage solutions:
- B-Lenders can be an option; they can allow greater loan to value ratios. In most cases up to 75% LTV. Rates are slightly higher than bank rates and usually these types of mortgages come with a 1% to 2% fee associated with the setup.
- Home Equity Mortgage Lenders lend base most of their lending criteria on equity. In most cases proof of income & credit is not an issue and generally lend up to 75% LTV. These mortgages come with higher costs and rate but can close in most cases faster than banks & b-lender.
- 2nd Mortgage Options would be another option. Firstly we would obtain a conventional lender (bank, trust company or credit union) to take on the 1st mortgage to the maximum the client would qualify. We then match the foreign real estate investor with a 2nd mortgage generally up to 75% LTV for the balance. Broker & Lender fees may apply in addition to higher rates due to the priority of the mortgage. There are 2nd mortgage programs able to lend up to 85% LTV but the costs associated with these types of loans are Very costly.
For a no obligation review of your mortgage needs feel free to give me a call to discuss equity mortgage options that might be right for you.
