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Summary for Canadians requiring a US Mortgage for their Florida US  real estate property purchase

Summary for Canadians requiring a US Mortgage for their Florida US real estate property purchase

  • US Mortgages take longer to close than Canadian mortgages.  Usually 3 – 5 Weeks Total to Close whereas in Canada it is only a few days to a week.
  • US Mortgage Rates are locked in after the loan application is signed and at discretion of borrower.  In Canada, the mortgage rate will be locked at time of first quote up to a certain number of days.
  • US Closing Costs can be up to 2 – 3% of the real estate purchase price.  In Canada, closing costs for a Canadian mortgage are about 0 to 1% of the real estate purchase price.
  • No Pre-Payment Penalty for some US mortgage products.   Canadian mortgages usually have a pre-payment penalty during the closing period.
  • US Mortgage rate options are available for more motions such as for fixed rates on 15 or 30 year term & amortization. In Canada, there are generally no fixed options for 15 and 30 year amortization terms
  • A.R.M.’s (V.R.M.) US mortgages cannot be converted into fixed rate.
  • US Mortgage documentation submission requirements are more expensive than in Canada, which can be done more simply and more cost effectively.  This is one of the reasons a US mortgage is more expensive.
  • No tax deduction(s) for mortgage interest paid by Canadians on Florida property* (speak to a tax specialist about this)
  • Mortgages Are Not: Switchable, Assumable, Portable.  In Canada, they can be.