A Canadian’s guide to getting a US mortgage

Canadians may want to buy a property in the US for a variety of reasons, whether you're planning on moving or using it as an investment. If so, you will likely need to find a US mortgage. These have slightly different requirements, fees and processes to those in Canada, but there are several options available.

This guide will look at mortgage options available for Canadians looking to buy US property. It will also introduce Wise, which can help you with currency conversion and international transfers to move your Canadian funds to the US.

This guide will cover

Can a Canadian get a US mortgage? Types of US mortgages for Canadians Getting a US mortgage through a Canadian bank Getting a mortgage directly from a US lender Eligibility criteria for a US mortgage for Canadians Credit history requirements Down payment conditions Income and documentation requirements US mortgage amounts, fees, and conditions Minimum and maximum mortgage amounts Mortgage rates and fees Currency exchange costs when paying your mortgage Challenges and considerations for Canadians getting a US mortgage Using Wise for cross-border mortgage payments

Can a Canadian get a US mortgage?

It is entirely possible for Canadians to get a US mortgage. Whilst the requirements will vary between banks and mortgage programs, you'll generally need¹:

• Proof of income
• A credit history - you can use your Canadian history with some programs
• A valid passport and visa
• A purchase and sale agreement
• A confirmation of a down-payment from non-borrowed sources
• Insurance

Different banks have different exact requirements, and may require different documents as proof of the above.

Types of US mortgages for Canadians

Canadians can choose between getting a US mortgage with a Canadian or US provider.

Getting a US mortgage through a Canadian bank

Some Canadian banks such as RBC offer cross-border programs. This means that you can use your Canadian credit history to get a mortgage.

As these programs are designed specifically for Canadians, they may be more specialised to help you than US lenders. However, you may find that currency conversions made through the bank use an unfavorable exchange rate, leading to additional costs compared to if you use another provider.

Getting a mortgage directly from a US lender

Some banks offer specific mortgages for foreigners looking to buy homes in the US. These programs may allow you to get a mortgage even without a US credit history.² For example, HSBC offers mortgages in which they order an international credit report. This means you may be eligible for a US mortgage using your Canadian credit history.

Whilst the documents you'll need depend on the part of the US you are applying for a mortgage in, and your provider, you'll generally need to verify your:

• Identity
• Income
• Employment
• Assets

Example: RBC US HomePlus Advantage

Bank	Available Mortgages	Eligible Properties	Special Features
RBC Bank	RBC US HomePlus Advantage³	Includes: Single family homes, Condominiums, Planned unit developments, Leasehold properties	Doesn't charge bank fees, which can save you up to 4,500 USD on closing costs⁴

Eligibility criteria for a US mortgage for Canadians

The eligibility criteria for US mortgages may be slightly different than in Canada. However, banks are generally still looking for similar proof that you will be able to pay back your loan.

Credit history requirements

Banks look for a high credit score. Whilst different banks will have different requirements, a score of at least 620 is often required for a mortgage.⁶ A higher credit score means lenders are likely to have more confidence that you will pay back your loan.

This means they may offer a mortgage with lower fees and a lower interest rate, as well as one with lower downpayment requirements. This could save you thousands of dollars in interest payments if you qualify for a lower APR.

Down payment conditions

The downpayment required for your mortgage will vary depending on the bank you are using. Whilst some programs, such as the HSBC preferred Mortgage, might require a 20% downpayment, others require significantly less. However, if your downpayment is lower than this, you will typically need to pay for Private Mortgage Insurance.⁷ You may also be offered a mortgage with a higher interest rate, which could make the overall cost of purchasing your home more expensive.

Income and documentation requirements

Generally, mortgage providers will require you to provide proof of the following:

• Income
• Citizenship and identity
• Assets
• Insurance

Proof of income may take several different forms, depending on whether you are salaried, self-employed, or retired. It will also depend on whether your income comes from Canada, the US or both. Your mortgage provider should be able to give you a list of acceptable documents.

Canadian banks offering US mortgages are likely to accept Canadian versions of these documents. However, US mortgage providers may be unable to do this.

US mortgage amounts, fees, and conditions

US mortgages have a variety of fees and conditions that it is important to understand before you take one on. They may be different to those you'd find in Canada.

Minimum and maximum mortgage amounts

The minimum and maximum mortgage amounts you can get vary by lender and US location. When deciding how much they are willing to lend you, banks typically consider:

• The size of your downpayment
• Your credit history
• Your income

Other factors come into play here too, but this may vary by bank. Banks generally require a downpayment. For some programs, such as the HSBC Preferred Mortgage, this can be up to 20%. This means they will offer a maximum mortgage of 80% of the value of your home.

The maximum value loan you can receive may depend on where you are planning on buying your home. High value areas have higher loan limits than lower value areas.

Mortgage rates and fees

The mortgage rate you qualify for depends on both your bank, and your specific financial circumstances. They are likely to use factors such as your credit score and income to decide this.

Many banks have online calculators, which allow you to input information such as the cost of your home, your downpayment and zip code, to give an estimated mortgage rate.

For example, let's say you want a 30 year fixed mortgage of 200,000 USD, with a downpayment of 50,000 USD. You may discover that the Bank of America can give you a 6.250% rate.⁸ You can then use online mortgage calculators from alternative providers, to play with the numbers and see what you can afford.

When choosing your mortgage, you'll also need to think about closing costs. These are usually around 3-5% of the cost of your home.⁹ They are the fees associated with services such as points, mortgage insurance and prepaid interest.

Currency exchange costs when paying your mortgage

If you currently hold your funds in CAD, but want to own a home in the US, you'll need to pay to convert your money into USD. This service is provided by many Canadian banks offering US mortgages, so it might be tempting to use your mortgage provider. However, many banks charge exchange rate markups. This means that they give you a less favourable rate, often making a profit by buying currency for less than they sell it for.

As even a small percentage increase in currency conversion cost can add up to a large increase in the cost of buying your home, it's important to ensure that you choose the provider with which you'll receive as much USD as possible. A service like Wise may be the solution to this, as they specialise in international currency transfers and conversions. This often means they can do so more efficiently than traditional banks.

Typical costs of a US mortgage for Canadians

Cost Element	Approximate Range
Down payment	20%
Interest rates	Variable rates depending on property and credit score
Origination fees	0.5-1%
Legal/appraisal fees	Usually several hundred dollars

All of the above are estimates, and will vary depending on your loan issuer and personal circumstances. Make sure you understand the costs which will apply to your mortgage before you agree to it, as even small variations may accumulate to make a large change in the cost of your mortgage.

Challenges and considerations for Canadians getting a US mortgage

Canadians getting a US mortgage have additional challenges and considerations compared to a Canadian mortgage. It's important to understand the different real estate laws and closing processes involved in buying a home in the US, compared to in Canada.

A couple of key considerations are that mortgage closing typically takes longer in the US than in Canada - up to 60 days. In addition, you will need to be present in the US for closing, unless you use power of attorney to authorise a representative to act on your behalf.

It is also important to consider currency fluctuations when converting your CAD to USD. Even a small fluctuation can amount to a large decrease in the USD you receive. Conversely, if you convert when the exchange rate is favourable, you might be able to save hundreds, or even thousands of dollars. Using a service like Wise's auto-conversion can help you do this. With Auto-Convert, you can pick a rate at which your CAD will be automatically exchanged for USD.

You can also set up exchange rate alerts on your Wise account. This keeps you up to date with the exchange rate, so you can convert when it is favorable.

Using Wise for cross-border mortgage payments

When making currency conversions for cross-border mortgage payments, it might be tempting to use your bank. Whilst this provides familiarity, banks often charge an exchange rate markup, making a profit by giving you a less favourable rate. This type of hidden fee can increase the cost of your payments significantly.

On the other hand, Wise always uses the mid-market rate, instead charging a small, upfront fee, so you always know exactly how much you're paying. Wise's Large Amount Transfer service is dedicated to providing security and peace of mind for high value transfers. Their dedicated customer support team is there to help you every step of the way.

If you're not sure whether Wise is the provider for you, try out the online conversion calculator. This shows you the exchange rate, fee, and how many USD you'll receive for your specific transfer. You can then compare this to the rates and fees offered by your bank to decide which one works best for your circumstances.

Conclusion

Canadians can access US mortgages through both Canadian and US banks. It's important to consider cross-border differences in eligibility and fees, particularly additional fees associated with currency conversion. These can stack up quickly, particularly when using a provider who charges an exchange rate markup.

Consider Wise for your cross-border payments. As a specialist provider, they are likely to be able to provide a lower cost, and a more efficient service than banks, to save you money and help you buy your dream home.

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Sources:

1. TD - Cross border banking documents
2. HSBC - Loans for international borrowers
3. RBC - Cross border US mortgages
4. RBC - US mortgages HomePlus
5. BMO - Cross border mortgages
6. Better Money Habits - How credit affects mortgage rate
7. Bank of America - Mortgage downpayment
8. Bank of America - Mortgage rates
9. Bank of America - Closing costs calculator

Sources verified on 30 December 2025