Canadian passport. U.S. property.
It all comes together with a BMO cross-border mortgage.
How to apply for a U.S. mortgage
Here’s a quick look at how you can apply for a U.S. mortgage with BMO Harris as a BMO Private Banking or BMO Nesbitt Burns client:
- Talk to your Wealth Professional in Canada. They’ll help you put your application together and connect you with a specialist in helping Canadians obtain U.S. mortgages.
- Apply. When you’re ready to proceed, your BMO Harris Private Bank Mortgage Banker will start the mortgage loan application process.
- Review Loan Estimate and disclosures. Including loan terms, fees and other important information.
- Confirm your intent to proceed. At this point, you’ll need to pay a non-refundable application deposit so that third-party services such as an appraisal and title policy can be ordered.
- Receive credit decision. Once all documentation has been reviewed, you’ll receive the credit decision.
- Schedule a closing date and location to sign documents and have funds disbursed. Prior to closing, you’ll receive a document detailing all final terms, costs and figures for your approval. If you’re unable to be present at the closing in the U.S., you can appoint a Power of Attorney who can attend on your behalf.
Did you know…
Why choose BMO
Here are a few ways we can help you enjoy your cross-border lifestyle.
from your BMO Wealth Professional.
with a Canadian BMO Private Banking or U.S. BMO Harris debit card from the largest ATM network in the U.S. with over 40,000 Allpoint® Network ATMs throughout the country.2, 3
wherever and whenever you want with online and mobile banking4, and over 570 BMO Harris branches and 1,400 BMO Harris ATMs in eight States including Florida and Arizona.
with a wide variety of BMO Harris Bank Mastercard® credit cards.
with the help of a mortgage banker specially trained in cross-border mortgages.
FAQs about getting a mortgage in the U.S.
Why should I talk to my Canadian Wealth Professional if I need a U.S. mortgage to purchase a U.S. property?
Your Canadian BMO Private Banking or BMO Nesbitt Burns Wealth Professional will connect you with their counterparts in the U.S. who are specially trained to help Canadians apply for mortgages in the U.S. If you go directly to BMO Harris in the U.S., they may not be able to see your BMO Private Banking or BMO Nesbitt Burns client history.
Can I buy a property in the U.S. with a mortgage from a Canadian bank?
No. If you require a mortgage to finance the purchase of a U.S. home or property you need a mortgage from a U.S. lender. However, if you have equity in a Canadian home or property you may be able to borrow against your Canadian property to pay for a U.S. property. Keep in mind that Canadian funds will need to be converted to U.S. funds.
Do I need a U.S. credit history to apply for a U.S. mortgage?
No. With BMO, you can apply for a U.S. mortgage using your Canadian credit history if you do not have a U.S. credit history.
Is getting a mortgage in the U.S. the same as getting a mortgage in Canada?
No. The U.S. mortgage industry is more regulated than the Canadian mortgage industry. This affects how long it takes to apply for a mortgage, how much documentation is required and may mean that you pay more in third party fees.
How much of a down payment do I need to purchase a vacation property or a primary residence?
The downpayment amount required can vary based on your credit history. Speak to your BMO Wealth Professional or a BMO Harris mortgage banker for additional details.
Do I have to attend the mortgage loan closing in person?
The norm is for customers to attend the mortgage loan closing in person at the location of the U.S. title company. If you cannot attend the closing in person, you should consider designating a Power of Attorney who will act on your behalf at the closing. Talk to your BMO Harris Mortgage Banker for details.
Is there a penalty for making additional mortgage payments or for paying off my mortgage in full before the end of the mortgage term?
No, with BMO Harris, there are no penalties for making additional mortgage payments or paying off your mortgage in full before the end of the mortgage term.
How do I make an extra payment on my mortgage?
To make an additional payment against your mortgage you can: mail a cheque written on a U.S. bank account to your BMO Harris branch, make an online transfer from a BMO Harris personal chequing account or phone BMO Harris telephone banking. Talk to your BMO Wealth Professional if you have any questions.
How do I pay off my mortgage in full before the end of the mortgage term?
To pay off your mortgage in full you need to obtain a mortgage payoff letter which will advise you how much you owe and where to send the payment. You can obtain the payoff letter either by requesting it from your Canadian BMO Wealth Professional or visiting a BMO Harris branch who will request the mortgage payoff letter on your behalf.
What are third party fees?
Third party fees are fees for expenses incurred by outside parties that are necessary to assess and complete a mortgage application. Some examples of third party fees are appraisals, survey fees, title search and attorney closing fees.
I keep hearing that U.S. citizens can use mortgage interest as a tax deduction on their tax return. Is this true for Canadians who own a U.S. property?
If you pay taxes in the U.S. and you meet the qualifications for being able to deduct mortgage interest, this may be possible. Our BMO cross-border specialists will be happy to talk to your legal and tax advisors.
Is it better to take out a loan in Canada that allows me to buy the U.S. property outright?
This will depend on your personal financial situation and how you feel about where the value of the Canadian dollar relative to where the U.S. dollar is headed.