Canadians – Shopping For Your Florida Home Mortgage
Now is a great time for Canadians to buy a second home in Florida. Much of the concern with doing this results from not understanding how to finance a character and how to take title and manage taxes.
I recently had the opportunity to attend a Florida seminar and glean some important information on this subject, which I will proportion with you on these pages. It is important that you not construe anything within as legal advice. You will need to speak with a lawyer and/or accountant who deals with cross-border issues to determine what is most appropriate for your particular situation.
With the Canadian dollar at about par and the American dollar and interest rates low, there has rarely been a better time to buy in Florida. There is currently a large inventory of brand new homes obtainable, many of them sitting vacant.
One of the first things to be aware of is that you can acquire the dream of your home in the sun without a U.S. Social Security number or U.S. credit history. You can get a mortgage for your character.
RBC Centura Bank is a subsidiary of RBC Royal Bank and has over 45 branches in Florida. They have developed a banking and home-lending program for Canadians which is called RBC ACCESS USA. It has a number of financial solutions for Canadian buyers and uses your Canadian credit history for qualification of a mortgage. Their team of financial professionals are specially trained to assist you with U.S. banking and home lending requirements. Banking & Mortgage laws and regulations, in addition as “terms” are quite different in the U.S. and RBC’s team knows the difference between the U.S. and Canada when it comes to banking & getting a mortgage.
While the time frame to get a mortgage in Canada is often only two or three days, and sometimes as little as 24 hours, it can take as long as a month in the U.S. So if you are looking to buy a home in Florida in the near future, you can pre-qualify for a mortgage, as you do here in Canada. This can save you time and help you to bargain for a better price in the current buyer’s market. Being pre-qualified gives you much more leverage in the U.S. mortgage course of action in addition.
Unlike with most Canadian mortgages, in the U.S. the consumer usually has the option to pre-pay at any time without penalty. This is a huge advantage, as it allows you to bring your mortgage balance down when exchange rates are favourable, or if you find yourself with a bit of additional cash. Another plus is that you do not have to continuously renegotiate a U.S. mortgage, but rather have the option of a fixed rate for up to 30 years, which is another good reason to buy now with interest rates at an all-time low.
When you mortgage in the U.S., the bank will give you a “good faith” calculate, which will itemize all the charges involved in the transaction. This way you will know exactly what your total expenditure will be. With RBC Ventura you can finance up to 80% on a second home loan OAC. It is very important to your have your U.S. asset(s) covered in your will or trust and seek proper cross border advice in that regard. We will talk more about that later.
If you are interested in investing in Florida Real Estate, web pages at the bottom of this article contain articles that offer information you need to know. You will want to know about cross border trusts, tax laws, and estate planning before going ahead.
On these pages, you will find most of the information you need to get started with your real estate buy in Florida.
It is important to get qualified legal advice from a lawyer experienced in cross-border real estate and planning. The advice of a knowledgeable tax advisor would also be a good idea.
Please observe that the information on these pages is not to be construed as tax or legal advice, but rather as information only. One thing to remember: Revenue Canada and Florida Laws can change without notice, so current advice at the time of your buy is basic.
This information has been collected from workshops we have attended and are in place to help simplify the buying course of action for you and to offer important information you may require before making this very important buy.