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Are Canadians Buying Florida USA Real Estate with Cash?

Are Canadians Buying Florida USA Real Estate with Cash?

Yes.  Initial statistics indicate that most Canadians are buying US real estate with cash. This is because most Canadians cannot obtain a US mortgage, which is nearly impossible.  Obtaining a US mortgage is difficult because Canadians do not have US credit history, which is what US lenders customarily rely on.  Therefore most Canadian buyers of US real estate pay with “cash”.

However, most Canadians are likely taking out a loan in Canada, either a second mortgage on their Canadian home or a line of credit or refinancing their Canadian home, so while it may appear as a “cash” purchase, likely there is a loan taken out behind the scenes at some point.

Obviously, there are some percentage of Canadians that are buying US real estate with pure 100% cash. They would either have sufficient savings or would liquidate their investment portfolio such as stocks and bonds.

The point is that if you want to buy US real estate in Florida, you need to have financing available in Canada before your purchase.