Spending the winters away from the cold harsh winters is a dream for many Canadians. For these “snowbirds” what better place is there than Hawaii to realize that dream. Whether you are ready to start being a snowbird right away or purchasing a home in Hawaii in preparation for some day there are certain things to consider specific to Canadians.
First thing you will have to consider is whether your will need to borrow money to purchase your dream home. As Canadians there are a number of options including:
1. US Mortgage from US Financial Institution
This scenario involves approaching a US bank or lending institution that is familiar with Canadians. It is often difficult to find a lender that understands what the CRA are and what a T4 is. They won’t understand you do not have a W2 and a 1040. Also an excellent credit rating in Canada is not the same as a US credit rating. Ironically the same rating companies exist on both sides of the border. The US lending system requires a massive amount of paperwork so before you go down this path make sure to ask if the lender has dealt with Canadians before and successfully helped them get funded.
2. US Mortgage from US Division of Canadian Bank
RBC Bank is the one US affiliate of a Canadian bank that has a US division that can do mortgages in Hawaii. The advantage is they understand Canadian credit systems, tax returns and lingo. They are a good source of potential funding.
3. Leveraging equity in your Canadian Home
For those people that have built up significant equity in their Canadian home, perhaps the easiest way of buying a home in Hawaii is to obtain the funds from their Canadian lender. By setting up a mortgage or line of credit against your Canadian home, it may give you the cash needed to buy your Hawaii home without the stress and paperwork that go with US lenders. From a Hawaii perspective the purchase then becomes a simple cash transaction. It is important to talk to an accountant familiar with US and Canadian tax law to ensure its set up properly and that you can deduct interest.
Looking for more information and help finding your dream home.
Contact us for more assistance:
Jeff Seifert
Realtor R(S)-78074
Paradise in Hawaii Luxury Homes, LP
808-270-1900