Condo market has been quite active during this year. Many investors are non-residents and are seeking condo mortgage financing. Basically, these non-resident buyers are interested in obtaining benefits from the resale opportunities. These investors look for a short term solutions for finance due to various condo unit resale opportunities.
Mississauga, Ontario is known to be a perfect place for their condo loan solutions. Mortgage solutions for these non-resident condo investors are equity based, usually sourced by private sector mortgage lenders and do not qualify for income.
While observing this non-residential investor business, we come to know that the required down payment is about 25% like most of the other equity based mortgages. Other then this, all sources for these funds must comply with the laws and protocols related to international money transfer. The non resident investor has an advantage as the finance obtained will be with the absence of pre-payment penalty clause.
Funds shall be transferred after a certified condo appraisal valuation of the property is obtained and after the verification of down payment. There are two more requirements that need to be considered by the non resident investor:
- The actual buyer of the property will perform the condo mortgage closing in person and no power of attorney shall be permitted
- The solicitor of the purchaser shall do all the correspondence for the condo property loan.