How to Get a Mortgage in the U.S. as a Canadian

Canada’s housing market is facing a crisis. Home prices have surged—reaching over $1.1 million CAD in cities like Toronto and Vancouver—while supply remains constrained​. With rising interest rates and stricter lending criteria, homeownership in Canada has become increasingly difficult.

In contrast, the U.S. real estate market offers Canadians more affordable property prices, better rental yields, and opportunities for diversification. Popular destinations such as Florida, Arizona, and California attract Canadian buyers seeking vacation homes or investment properties with long-term appreciation potential​. In 2023-2024, Canadians accounted for 13% of all international real estate purchases in the U.S., leading the market among foreign buyers.

U.S. Mortgage Options for Canadians

When buying a house in the USA from Canada, Canadians have two main options:

1. Canadian Banks Offering U.S. Mortgages Canadian banks like RBC and TD Bank provide cross-border mortgage programs, but they qualify borrowers based on debt-to-income (DTI) ratios. DTI measures how much of your monthly income goes toward debt payments, including the new mortgage. While these programs are ideal for those with steady, well-documented income, they often involve longer processing times and stricter documentation requirements.

2. Direct U.S. Lenders U.S.-based lenders like Milo qualify borrowers based on debt service coverage ratio (DSCR), which focuses on the property’s potential to generate rental income. This approach allows Canadians to qualify without needing extensive personal income documentation, though it requires a higher down payment (25-30%) to offset risk.

How to Get a U.S. Mortgage as a Canadian

Step 1: Pre-Qualification and Pre-Approval

• Canadian Banks: Gather detailed income documentation, such as pay stubs, tax returns, and credit reports.
• U.S. Lenders: For Milo’s DSCR loans, provide property information, proof of down payment, and statements showing liquid assets. Pre-approval through Milo can be obtained quickly, often within minutes via their online platform.

Step 2: Search for the Right Property Canadians often focus on vacation or investment properties in Florida, Arizona, or California, driven by warm climates and favorable rental yields. Working with a real estate agent familiar with U.S. markets ensures a smooth purchasing process.

Step 3: Apply for a Mortgage

• Canadian Banks: Applications require in-person meetings or document submission by mail, and processing time is an average of 45-60 days.
• Milo: Entirely online, with document submission through a secure portal. Loans close within an average of 21 days, offering flexibility and speed for time-sensitive buyers.

Step 4: Provide Required Documentation for a DSCR Loan Canadians applying for a DSCR mortgage with Milo should prepare:

• Proof of liquid assets (bank or investment account statements).
• Property details (purchase agreement and projected rental income).
• Identification documents (passport or valid government ID).

Step 5: Finalizing the Purchase and Closing U.S. lenders require 25-30% down payments for non-resident borrowers. Closing costs typically range from 2.5% to 5% of the property’s price. Depending on the state, Canadians can complete the closing remotely via power of attorney or remote notary service.

The Best Way to Finance U.S. Property as a Canadian

Financing your U.S. investment through Milo offers several advantages. With no reliance on personal income for qualification, Milo's DSCR-based mortgages provide flexibility for Canadians looking to unlock rental income potential without the constraints of traditional DTI requirements. Meanwhile, Canadian banks are ideal for borrowers with predictable, documented income, though the process can take longer and require more paperwork. Exploring U.S. real estate opportunities with a U.S. lender like Milo allows Canadians to leverage property income potential while keeping their investment portfolio diversified and liquid.

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Whether you’re buying a house in the USA from Canada or looking for a rental property, U.S. mortgages offer a valuable opportunity for Canadian investors. With flexible programs like Milo’s DSCR loans and cross-border options from banks like RBC, Canadians can access the financing they need to expand their real estate portfolio. Pre-qualify today and take the first step toward securing a property in one of the U.S.’s thriving real estate markets.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.