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THE SEVEN DIFFERENCES BETWEEN CANADIAN AND AMERICAN MORTGAGES

If you’re setting your sights stateside and planning on bringing your lacrosse stick, canoe, and maple syrup across the border to new horizons, you’ll need to know more about what an American mortgage looks like!

APPLICATION REQUIREMENTS This factor is actually pretty similar, with both Canada and the US wanting to know more about your income, assets, liabilities, investments, the type of property you’re buying, and proof of employment. One main difference with the US is that they also want to see your country of residence.

PROCESSING TIME Here’s a pretty big difference for you, and something you’ll need to factor into your move. In Canada, the average processing time is 5-10 days, which is pretty darn fast! In the US, you’re looking at 40-45 days – you read that right! So, if you were planning on getting things through in a week or two, best to expand your timeline.

REQUIRED DOCUMENTATION You’ll be happy to know that there isn’t much difference between the documentation you’ll need for Canada and for your move to the US.

MORTGAGE INTEREST In Canada, your current norm will be that your interest isn’t tax deductible. However, when you go to the States, you might find that it is deductible against your income tax – a nice bonus if so!

DOWN PAYMENTS In Canada, they dramatically range, 5 – 20% plus based on purchase price, for your conventional mortgage – the same as it is the in the US! In both countries you can also find differing loan programs, both requiring 5% as the lowest down payment. The biggest difference in the US, they won’t qualify your purchasing power based off a mortgage stress test.

CLOSING COSTS The typical range in Canada is 1.5% - 4% of your purchase price, with 2.5% as the average. This is driven by your land transfer tax and the legal fees you pay. In the US, the typical range is 3% - 6%, with 4% as the average.

PORTABLE LOANS While both neighbouring countries have portable mortgages, the major advantage south of the border is the mortgage term length. While a 3- or 5-year fixed-rate mortgage might be considered long in Canada, a 25- or 30-year fixed-rate mortgage can be the norm in the US.

WHAT YOU NEED TO KNOW If you already own a home or two in Canada, you shouldn’t find the mortgage process that much different when you come to climb the US property ladder.

For any further advice on your US mortgage – contact our team! We might be on a different side of the border, but we’ll happily support you as you head stateside.

CANADIANS MOVING TO THE USA:

Wanting to make your move across the border as rewarding as possible financially? You’ll want to take a look at how you can build your credit score there! With a decent credit score, doors are opened, banks smile as you approach them, and it’s easier to purchase properties and invest there.

FIVE SIMPLE STRATEGIES TO BUILDING CREDIT IN THE USA.

Transfer Your Credit Score To The USA We’re not saving the best until last here—this is the biggie, and something you should definitely place on your priority list. Being able to transfer your existing credit over gives you a big leg up in every other financial goal you might have planned. Once you’ve got everything moved over, that’s when you can begin to build credit history with a bank.

Get On Board With A Bank Before you go choosing any bank though, consider what you want from it. Do you prioritize friendly staff and decent online support over anything else? Will you be needing access to cash at 3am from an accessible ATM (the less we know there, the better)? What’s your stance on the fees you’ll pay? Think about all of this and then make your decision. Whichever bank you choose, having an account will build a local credit history and help you get credit cards, mortgages, and loans when you need them.

Apply For A Credit Card Whether or not you’re a credit card lover, there’s no denying that they’re a decent way to prove your creditworthiness and build your score up. If you’re able to transfer your credit score over and your original score is decent, you shouldn’t have issue with banks. Use your card to help you deck your new digs or buy you a work-drobe for your fancy new job, and then prove you can pay it. You’ll build credit in no time! If you can’t transfer your score, you’ll need to get a secured credit card—the kind that helps people with minimal credit history. This kind of card does require you to put down a cash deposit, and your spending limit will depend on how high that deposit is.

Only choose a supplier who reports your payment history to Equifax, Experian, or TransUnion. If this doesn’t happen, your credit card won’t build your US credit score.

Get A Co–Signer If you’re struggling to get a credit card or credit–based product, applying with a co–signer who already has credit in the USA could give you a leg up, as you benefit from their good history. Just make sure you don’t choose your sibling or in–law who never seems to buy their round of drinks! Remember, that is someone co–signs they’re responsible for your debt if you can’t pay it.

Have Patience And Pay Up If you want to prove that you’re good with your dollar dollar bills y’all, our top rule for you is paying on time! Make your payments when you need to, and you’ll build a good credit score. Be sure to use your credit card and pay it every month too—don’t just pretend like the bill was sent to the wrong address.

After this, it’s all a matter of waiting for those numbers to build up. Being honest, it can take years to get you back to where you were originally if you aren’t able to transfer anything, but with perseverance, support, and the right information you’ll get there!

What You Need To Know More than anything, building credit in the USA is about spending first! If you don’t spend any money or take out any form of credit or loan—how will a bank or a lender know you can be trusted in the future? Don’t be afraid to get yourself a credit card, somewhere to rent, or even a co–signer. If you show you make those payments on time, and you’re dedicated to building history, you’ll build a good credit score.

Want more financial support on your move from Canada to the US? Green Mortgage can help! Although we don’t know how you’ll live without your double–doubles, we do know how to help you make your finances work just south of the friendliest country in the world!

FIVE STEPS TO GETTING AN AMERICAN CREDIT CARD

Open A US Bank Account You don’t necessarily need a US bank account to apply for a credit card as a Canadian citizen but having one can make dealing with your finances much easier. You don’t need to worry about currency conversion fees, and it makes it easier for managing your salary, savings, and payments.

Establish Your Address To apply for a credit card, you don’t need to have a US address, but it does make things easier. If you’re still not sure what your abode will look like, you can try applying with your Canadian address. However, even if you’re living in the US somewhere temporarily, it’s better using a US address, you can always change your addresses as you move.

Obtain Your Numbers Namely your Individual Taxpayer Identification Number or Social Security Number. These will be used to verify your identity and credit history – the building blocks to getting approved for a credit card. No credit history means less trust factor for providers!

Check Your Credit Report and Score Your credit score is given the most weight when making credit decisions, so it makes sense that you check your credit score to know where you’ll stand with different providers. You’ll then know whether you can go for providers who distinguish cards between scores. With your credit report you’ll also be able to look for any inaccuracies or errors that could negatively impact your score.

Find The Card You Want To Apply For There’s plenty to research and compare between the variety of US cards out there. To make the best choice you need to factor in things like:

• What you’ll use the card for—day–to–day, big purchases, travel?

• How you’ll pay off the card—will it be maintained month–to–month or big one-off payments.

• What kind of annual fee are you willing to pay?

• Do you want any benefits like rewards, points, or low interest on specific purchases?

Through this, you can scale down your choice. What You Can Do If You Face Rejection From Providers There’s always the chance a lender or two won’t give you the approval you need. If so, you can wrack your brain to figure out why, or you can get confident and contact the provider directly. You might have the opportunity to get the provider to reconsider, but you’ll have to show just why you’re a strong candidate. What You Need To Know If you’re all set to move and know your address, know you’ve a healthy credit score and history, and have looked up which providers you’d like to go with – congrats! You’re all ready to apply for a US credit card. What will you use the credit for? Improvements at your local Lowes…treating the kids to a day out in your new town…the US is now your oyster!