Quote:
Originally Posted by Carl Johnson
Can you talk a little bit more about getting a mortgage to buy a house in U.S.? Who do you talk to and what do you need? What is the investment mortgage you were talking about?
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Investment mortgage, sadly, I can't comment further on - I have a significant amount of connections down there (thanks to a lot of leg work), and as such, certain relationships I have garnered have allowed me to obtain investment financing - for me, and those I work with...
As for other mortgage products, most banks will provide mortgages to Canadians for second homes down in the states, but there are restrictions, such that you cannot rent these properties (not even on a weekly basis).
Basically, I'm a bit of a tease with this one, most ppl cannot get mortgages down there, unless they have connections - I have connections, but it has taken a lot of leg work on my part to get these, which is a great for me and those who invest with me, but generally its not going to happen yet at least - give it time, the banks will start lending again, but not this year, and maybe not next year.
if you wanted a vacation property - many banks will offer at around 4.5% variable, which is pretty good! you'd still get some major capital appreciation from that over the next 5-10 years but as an investment it wouldn't be that great (as you get no cashflow) - but again, watch the tax on that one (if you do nothing, you will lose 10% of proceeds to FIRPTA withholding tax)