Milo vs. TD Bank: Best U.S. Mortgages for Canadian Investors in 2024

Canadian interest in U.S. real estate has surged in recent years, driven by the allure of diverse investment opportunities and favorable market conditions. According to the National Association of Realtors, Canadians have consistently been among the top foreign buyers of U.S. properties, drawn by the potential for rental income and capital appreciation. With a growing number of Canadians looking to invest south of the border, understanding the financing options available is crucial. Two notable options are TD Bank and Milo, each offering distinct advantages. This article will compare these programs and highlight why Milo stands out as the optimal choice for Canadian investors.

TD Bank's U.S. Mortgage Program

TD Bank offers a comprehensive mortgage program tailored for Canadian buyers interested in U.S. real estate. Here are key aspects of their program:

• Application Process: Conducted by a loan officer either face-to-face or over the phone.
• Closing Requirements: Closing must happen in the U.S., with the buyer or their power of attorney present.
• Processing Time: The entire process takes approximately 45-60 days.
• Income Documentation: Requires income statements, whether salaried, self-employed, or retired.
• Document Submission: Documents must be sent via mail or physically delivered.
• Conditional Approval: Granted within 24 hours of the initial meeting with the loan officer.
• Loan Estimate: Provided within three business days of application submission.
• Closing Cost Estimate: Detailed within 24 hours before closing, requiring a certified or bank check.
• Deposit Requirement: A 25% deposit is required for investment properties.
• Loan-to-Value (LTV): For second homes or investment properties, TD Bank offers up to 75% combined LTV.

Milo's U.S. Mortgage Program

Milo presents a modern alternative, emphasizing convenience and efficiency. Here are the highlights of Milo’s program:

• Application Process: Completely online with secure document submission. The process can be initiated at any time without scheduling an appointment.
• Processing Time: The process typically takes 30 days or less, with an average turnaround time of 21 days.
• Qualification Criteria: Based on property values, projected rental income, and sufficient liquid assets to cover down payment, closing costs, and reserves. Income or DTI is not a factor.
• Document Submission: Securely submitted through an electronic portal, allowing for flexibility and convenience.
• Conditional Approval: Can be secured within minutes of completing the initial online application.
• Loan Estimate: Provided immediately upon completion of the initial online application.
• Closing Costs and Payments: Estimated closing costs, rates, and monthly mortgage payments are provided upon selection of the desired loan program.
• LTV Requirements: Requires a 25-30% LTV on investment properties.
• Final Closing Costs: Detailed within 72 hours of closing.

TD Bank vs. Milo

Investors who choose TD Bank typically prefer a more traditional approach. They value in-person interactions with loan officers and are comfortable with a process that requires physical documentation and face-to-face meetings. This type of investor may prefer the familiarity and personal touch of a hands-on, albeit slower, approach and may be wary of relying solely on technology.

On the other hand, Milo caters to investors who prioritize a seamless and convenient experience. These investors appreciate the speed and efficiency of an entirely online application process. They also value the ability to submit documents securely and at their convenience. Despite being an online-focused service, Milo ensures personalized support through their operations team and loan officers, providing tailored guidance and assistance throughout the process.

In summary

For Canadian investors looking to finance U.S. investment properties, Milo offers distinct advantages over TD Bank. Milo’s streamlined, fully online application process, faster processing times, and qualification based on property values and rental income make it an ideal choice for those valuing time and convenience. Additionally, Milo’s approach of qualifying based on cash flow rather than personal income eliminates the limitations posed by DTI requirements, providing a more flexible and investor-friendly financing solution. In summary, Milo is well-suited for investors seeking efficiency, flexibility, and a hassle-free experience in securing U.S. real estate investments.

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.