Canadian investors, seeking American mortgages, may be in for a shock when "shopping". The American mortgage banking and brokerage system is different than the Canadian banking system. In Canada, there are 5-7 major banks or lenders and a variety of mortgage brokers. Both lenders and mortgage brokers, in Canada, are heavily regulated. Loan programs, in Canada, are fewer than the loan programs offered in the States. The American mortgage industry relies heavily on the seciritization of mortgage loans. As such, there are big banks and small mortgage brokers who may very well offer identical loan programs.
Should Canadian investors then deal only with large American banks? Ask Canadian investors, with properties in escrow, this past week. Two major American banks cancelled their loan programs, on April 1, 2008, for Canadian citizens buying properties in Arizona, California, Florida, and Nevada. I have fielded 5-7 calls each day, since Friday, from frustrated Canadians.
Consider this question, posed by a Canadian borrower (about a Canadian mortgage):
A compendium of articles about how Canadian investors need mortgages from U.S. Banks:
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