For many, the idea of owning a home abroad is a dream come true. The ability to be able to own a home in Canada and travel to another property elsewhere anytime you want is very desirable.
But can Canadians buy houses abroad? And what does that process look like? Today we’ll answer these questions and more as we dive into the world of housing abroad.
Can Canadians Buy Houses Abroad?
The simple answer to this question is yes, Canadians can buy houses abroad. In many cases, owning a home abroad is not only a dream come true but also an excellent investment.
Depending on where you purchase your new home, housing prices can be significantly cheaper than they are here in Canada.
Owning your own home elsewhere in the world is a great way to make a second income through renting, and a great escape when you need some time away. Some of the top destinations that Canadians are buying include the United States, Brazil, Italy, and Portugal.
How can you finance a home abroad?
There are several different ways that you can finance a home if you wish to purchase abroad:
- Upfront Payment
The majority of people who choose to purchase a home abroad simply opt to pay it off upfront. If you have the cash to be able to do this, it can save you a great deal of time and fees. It’s also a good option for anyone who is having difficulty obtaining a mortgage.
- Cross Border Mortgages
A lot of banks here in Canada have the ability to help you obtain a mortgage if you are looking to purchase in the United States. RBC and BMO are two of the most popular banks for offering Cross Border Mortgages.
If you are looking to purchase outside of the United States, there are options for this as well. Scotia Bank and HSBC, for example, both operate in Canada as well as several other countries around the world. You can use them to apply for a mortgage if they operate in the country you wish to purchase your home.
- Banking in Foreign Countries
If you don’t wish to use a financial institution in Canada to acquire your mortgage, you can also apply for a mortgage at a bank in the country you wish to purchase your home.
Having said that, the process will likely be very different than the process of applying for a mortgage in Canada. Different countries have different rules and requirements for down payments, income approval, and credit rating approvals. Property and closing costs will also differ from country to country.
- Using your Home Equity
The final option for purchasing a home abroad is to use your home equity. This is a simple option that allows you to refinance your Canadian residence to pay for your home abroad. With that being said, you must be a current homeowner in order to do this.
If you are thinking about purchasing a home abroad, it’s important that you do your research first. Depending on which country you are looking to purchase, laws may be very different than they are here in Canada.
Always be sure to speak with a financial advisor before finalizing any purchases. They will be able to discuss your different options with you and help you select the best option for your needs.