Consider that the Canadian dollar worth approximately 60% more vs. the U.S. dollar than it was just a few years ago. Consider also that the median price of a free standing home in the Las Vegas area is down over 30% since 2006. This is a “perfect storm” situation for you as a Canadian buyer. I have experience helping Canadians purchasing property in the Las Vegas area and would be happy to help you.
Taxes and residency – As a Canadian resident who visits the US on extended stays, you are considered either a “resident alien” or a “non-resident alien” of the US for tax purposes. Resident aliens are generally taxed in the U.S. on income from all sources worldwide, and non-resident aliens are generally taxed in the U.S. only on income from U.S. sources. I have reviewed quite a bit o finformation relative to this and as and the most conservative estimate I found states that if a foreign national has neverspent more than 121 days in the U.S. in any tax years, he/she will never be considered a U.S. resident under the substantial presence test. I have also seen a figure of 183 days as a maximum. This is a complicated issue and the laws are, of course, subject to change. I am not an attorney or an expert in taxes and would advise you to contact the professionals you may need to verify and expand on the above.
Loans, Mortgages – For Canadians, the loan process is very similar to that for Americans. First of all the borrower will need to complete a mortgage application. The borrower will be required to furnish a letter of employment, relevant bank statements and a copy of a valid Canadian passport with an acceptable entry visa stamp. Once all the information has been verified the lender can then determine the most suitable program.
In my experience I have found that there are two distinct program options available. The first option works if the borrower has perfect Canadian credit. In this case the lender can go through a large credit depository like Chase and pull Canadian credit into their system. The lender can then use this in making a credit decision. There is limited tolerance for bad credit in this option. Armed with solid Canadian credit the borrower now has access to a wider choice of loan programs. They can qualify for fixed rate loan programs with limited pre-payment penalties and other features common to prime loans.
In the second program option the lender does not pull Canadian credit and only verifies employment, the liquid assets and the visa status of the applicant. In this case the loan programs are rather limited. These programs usually involve high down payment, variable interest rates, balloon payments and pre-payment penalties. Not all of these features may apply to the loan but will most certainly include a combination depending on the lender.
Canadian Law – For information on you on country’s law relative to these issues click here.
Visit the home page on my web site for complete information regarding the Las Vegas real estate market. Feel free to contact me with any questions you may have.
8625 S. Eastern Ave. - Las Vegas, NV 89123 - Contact Me
