FAQ’s
Canadian International Real Estate Loan (CIRL)
1. What fees are associated with the loan?
- One Time processing fee: Purchase in USD: $2,500 USD, Purchases in Mexico: $3,350 CAD.
- One-Time SCC Lending Fee: 6%.
- LOAN: The interest rate is 6%.
- Monthly servicing fee: $4.99 CAD.
- Loan Insurance: varies according to loan amount, age, and health conditions.
- Exchange Differential: 2% – 4%.
- Annual Trustee fees of approximately $200 CAD per year.
2. What can be financed with this Consumer loan?
With a Canadian International Real Estate Loan you are able to finance the following:
- New properties
- Existing properties
- Preconstruction
- Land
- Investment Properties
- Commercial Real Estate
- Construction projects
- Upgrades
3. What documents do I need to provide for a Canadian International Real Estate Loan?
Seaport Credit Canada needs you to provide the following:
-
Signed Purchase of Agreement for the Sale with an approved Developer/Contractor or Construction Contract
- A scanned or photo of government ID (Drivers License or Passport)
4. How long does it take to receive the funds?
It takes approximately 4 – 6 weeks.
5. Will this reduce my credit score?
The Canadian International Real Estate loan does not impact your credit score.
6. What is the amortization term of the Canadian International Real Estate Loan?
Each loan is a 5 Year TERM with 20 years amortization.
7. What guarantees do I have that Seaport will pay the money to the seller/vendor?
- Every year Seaport Vacation Trust has to complete an audit from a 3rd party accountant firm to verify where the Seaport Credit Canada funds were sent.
8. Are we able to pay off the loan faster than 20 years? Is there a penalty or an allowance for extra payments?
- Loans can be paid out at any time with no penalty. Interest will be charged up to the date of the final payment only.
9. How does the Canadian International Real Estate Loan monthly payment break down ? Principle and Interest?
- Every payment includes both Principal and Interest please see the Loan Amortization break down.
World International Real Estate Loan (WIRL)
1. What are the World International Loan fees?
- Lending and Broker Fees: 3-5%
- LOAN: Interest rate is 7-12%
- Appraisal: $700-$900
- Closing Cost: varies depending on the property, loan and location
- 9-12 months reserve for principal and interest, taxes, and insurance for USA loans.
2. Can I finance a property purchase in both the USA and Mexico as an international investor?
Yes, international investors generally have access to financing in both countries. In the USA, foreign buyers can secure business purpose loans using the Debt Service Coverage Ratio (DSCR) approach. In Mexico, financing options may differ, but certain local banks extend loans to foreigners, typically requiring proof of income and a local credit history.
3. Do I need to establish a legal entity to purchase real estate, or can they buy property in their personal name?
A few lenders in the USA will allow foreign buyers to purchase investment properties in their personal name, however, the majority will only allow you to purchase/refinance in an entity/corporation. In Mexico, most lenders will allow you to purchase a property in your personal name. However, there may be some restrictions in some coastal and border areas that will require you to hold the property in an entity.
4. What are the primary considerations for foreign buyers regarding property management?
Foreign buyers often hire property management companies to oversee rental properties, handle maintenance, and manage tenant relations. It’s crucial to choose a reputable company familiar with local laws and market conditions.
5. Can foreign buyers obtain property insurance?
Yes, foreign buyers can typically obtain property insurance. Insurance coverage varies but generally includes protection against damages, theft, liability, and sometimes loss of rental income. Requirements and premiums may differ based on location and property type, so it’s advisable to consult with insurance providers familiar with the local market.