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U.S. lenders erect roadblock to Canadian real estate

Loan risk deemed 'unattractive'

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

We have some friends who chose this summer to visit Boston's Fenway Park, most of the rest of New England and even boarded a ferry from Portland, Maine, to Yarmouth, Nova Scotia. While they thought the vessel would be jammed with fellow tourists, they were surprised to discover the number of people from Maine, Connecticut and Massachusetts who were en route to their second home – in Canada. "The few I talked to said they made a down payment to the seller and then asked the seller to carry the paper," said my friend, Gary. "There was really no bank financing involved." Americans can borrow from Canadian banks and vice versa. But trying to finance Canadian property with U.S. funds becomes difficult. Location, security in the property and ability to enforce simply make the package unattractive to most U.S. lenders. And, if you do choose to buy and borrow Canadian, don't expect to see the loan options available here. The interest-rate structure could be as different as the locale...