Canadians Buying Homes in the U.S | Vacation Homes & Investment Opportunities 2025

Canadians Buying Homes in U.S | A Comprehensive Guide

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Introduction: Canadians buying homes in the U.S

As Canadian housing markets become increasingly competitive, more Canadians are exploring opportunities in the U.S. real estate market. From affordable vacation homes to high-yield rental properties, the U.S. offers attractive options for Canadians priced out of their local markets.

With Citadel Mortgages and our U.S.-based partner, Simply Approved Mortgages, we provide tailored mortgage solutions, expert guidance, and access to a free online course to help you navigate the process of buying property in the U.S. step by step.

Why Canadians Are Buying U.S. Properties

According to recent data:

Canadian Buyers Dominate the Foreign Market: Canadians accounted for 11% of foreign buyers in the U.S. real estate market, spending an average of $400,000 per property.
Affordable Housing Opportunities: U.S. home prices in many regions are significantly lower than in Canada. For example:
- The average price of a single-family home in Florida is approximately $350,000, compared to over $850,000 in Toronto.
- Texas, with an average home price of $320,000, provides exceptional value for investors.
High Rental Demand: Cities like Orlando, Las Vegas, and Phoenix offer rental yields exceeding 7%, far higher than many Canadian markets.

Learn more about today’s best mortgage rates in Canada.

Types of U.S. Properties for Canadians

Vacation Homes

Ideal for Canadians looking to escape harsh winters in warm states like Florida or Arizona.
Financing options are available for non-residents with competitive terms.

2. Investment Properties

Build a rental portfolio with high-yield properties.
Leverage the Debt Service Coverage Ratio (DSCR) program, which qualifies you based on rental income instead of personal income.
Ideal for generating passive income and building long-term wealth.
Includes access to programs like Section 8 housing, ensuring steady rental income.

Simply Approved Mortgages offers a free online course to help Canadians get started with either buying an investment home or vacation home purchases. Making the process simple.

U.S. Mortgage Programs for Canadians

Foreign National Mortgage Programs

Designed for Canadians who don’t have U.S. citizenship or residency:

Loan-to-Value (LTV): Up to 75% financing.
Down Payment: Minimum of 25%-30%.
Interest Rates: Slightly higher than U.S. citizen rates, ranging from 6%-9% depending on creditworthiness and property type.
Income Verification: Based on U.S. rental income projections.

Vacation Home Financing

Financing options tailored for properties used as second homes.
Flexible terms for Canadians purchasing in popular destinations like Florida, Texas, and California.

Investment Property Loans

DSCR-Based Loans: Allows qualification based on the property’s rental income rather than personal income.
Ideal for Canadians looking to buy multi-family homes, condos, or single-family homes as rental properties.

Why Choose Simply Approved Mortgages?

Our U.S.-based partner, Simply Approved Mortgages, simplifies the complex process of buying property in the U.S.:

Free Online Course: Gain in-depth knowledge about buying and financing U.S. properties through their step-by-step course.
Tailored Guidance: Work directly with mortgage experts familiar with the needs of Canadian buyers.
Competitive Rates: Access exclusive mortgage products with favorable terms for Canadians.

Explore Simply Approved Mortgages

Building a Rental Portfolio with Section 8 Housing

The Section 8 Program, managed by the U.S. Department of Housing and Urban Development, offers unique advantages for investors:

Guaranteed Rent: Government subsidies cover a significant portion of the rent.
Low Vacancy Rates: High demand ensures steady occupancy.
Community Impact: Provides affordable housing while generating income.

Pathway to U.S. Residency Through Real Estate Investment

Investing in U.S. real estate can also serve as a foundation for immigration:

E-2 Investor Visa: Manage a qualifying rental business to meet visa requirements.
Active Enterprise Requirement: Rental property management counts as an active business venture.

Tax Implications for Canadians Owning U.S. Property

Owning property in the U.S. comes with tax responsibilities:

Canadian Taxes: Declare your U.S. rental income or capital gains on your Canadian tax return.
U.S. Taxes: Pay property taxes and file annual returns for rental income.
Double Taxation Avoidance: Use the Canada-U.S. Tax Treaty to avoid being taxed twice on the same income.

Consult a tax advisor for personalized advice.

Why Buy U.S. Real Estate as a Canadian?

Affordable Options: U.S. real estate markets, particularly in regions like Florida, Texas, and Arizona, offer more affordable properties compared to Canadian cities.
High Rental Yields: Many U.S. cities provide attractive rental returns, especially in tourist-heavy or high-demand areas.
Portfolio Diversification: Investing in U.S. properties spreads financial risk across different markets.

FAQs About Buying U.S. Properties as a Canadian

Can I get a mortgage in the U.S. as a Canadian?

Yes, with programs tailored for foreign nationals, including options for vacation homes and investment properties.

What are the down payment requirements?

Expect to pay 25%-30% of the purchase price as a down payment. Also please note you usually need 6-12 months of cash in a US bank account for payments of the home mortgage and taxes.

Can rental income be used to qualify for a loan?

Yes, many lenders use DSCR-based qualification, which focuses on the rental income of the property.

Are there tax implications for Canadians owning U.S. properties?

Yes, owning U.S. properties may involve additional tax considerations in both Canada and the U.S. Consult a tax professional for guidance.

Final Thoughts - Buying U.S. Properties as a Canadian

U.S. real estate presents incredible opportunities for Canadians, from affordable vacation homes to high-yield rental properties. With the guidance of Simply Approved Mortgages and their free online course, Canadians can navigate the complexities of buying property in the U.S. confidently. Whether you’re looking for a vacation home or building a rental portfolio, our tailored solutions and expert advice will help you succeed.

Get Started Today with Simply Approved Mortgages

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