Like any other type of home or condo mortgage financing program, the cheaper sources of money are going to come from bank and institutional lenders.
Banks and other institutional lenders will have the same basic qualification requirements for non residents as they do for residence including proof of income, proof of net worth, third party valuation of security, good credit standing, and so on.
From a leverage point of view, a bank will not go quite as high in terms of the leverage on a non resident mortgage Canada. For a conventional mortgage to Canadian residents, the loan to value ratio for uninsured mortgages is regulated at 80% and can go as high as 95% for insured mortgages. For non resident mortgages, the high end of the lending range is more like 65% loan to value.
The other biggest difference between resident mortgages and non resident mortgages from banks and institutional lenders is the level of verification that is required for identity, income, and assets of the applicants. The process for verification is much more thorough and exact for non resident applicants which can add some time to the process.
If a Canadian non resident is either looking to locate and close a residential home mortgage quickly or do not have sufficient verifiable income to qualify for a bank mortgage, then a private mortgage from a private mortgage lender is also an option to them.
A private mortgage is basically a home equity loan of sorts in that the lending decision is based on the strength of the security value and the basic financial and credit profile of the applicants.
Private lenders can also go as high as 75% of the value of the real estate for non resident mortgages. This of course will depend on the individual private lender and their own direct assessment of the financing opportunity.
For non residents that are looking to acquire real estate for investment and only have a short time to close on an offer to purchase, a private mortgage may be the best option in that it can be arranged quicker than a bank mortgage, increasing the probability that the deal can get closed on time.
Private mortgages for non resident mortgages are typically for one year in duration and serve as a short term financing option that will likely need a residential or home mortgage refinance action to be taken if the property is going to be held for the long term.