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(For a more detailed article on U.S. Property Purchase for Canadians, please also see: U.S. Property Purchase for Canadians – A Primer.)

I do not arrange mortgages for property in the Unites States, but, if you wish, I would be pleased to refer you to a number of competent brokers. Brokers an either side of the border will offer referrals when they are confident of the individual or company to whom they provide a referral. This is merely professional courtesy, and I do not receive a referral fee.

While the process of acquiring property in the United States is, in itself, relatively straight forward, there are many things to consider before doing so, and it concerns me greatly to see Canadians rushing into US property purchase, without careful due diligence, just because prices may be low.

There are many factors to consider, including

  • the purpose of the purchase (vacation residence, rental property, long-term investment, etc.)
  • estate tax
  • property tax
  • capital gains tax
  • mortgage availability and terms
  • how the property is purchased (sole ownership, joint tenancy, corporate purchase, partnership purchase, tenancy in common, Canadian trust purchase)
  • the age of the purchasers, etc.

Also, please be aware that advisors in the US will almost certainly not be up to date on the Canadian side of the equation.

With respect to all tax and legal issues pertaining to US property purchase by Canadian residents, please be aware that changes in tax laws, court rulings or interpretation, government policy (state and/or federal) or other factors, could alter the information contained in this brief overview.

Such changes have the potential to affect you with respect to future property and tax matters, and possibly on a retroactive basis.

I can’t stress enough how important it is that you receive qualified, competent, independent, legal, tax and financial advice in this area, preferably in Canada.

And, if you decide to proceed with financing in the United States I strongly recommend dealing with a mortgage broker who is thoroughly familiar with the process required for obtaining mortgages for Canadian residents, and has done so on numerous occasions.

As a mortgage planner, advisor and broker, operating in British Columbia, I do not claim expertise on US property purchase or on related tax matters in particular.

That having been said, here’s a brief overview distilled from a number of sources including a number of well respected US-based mortgage brokers, lawyers and realtors.

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