Blog > Navigating Non-Resident Lending: What US Citizens Need to Know About Mortgages in Sea to Sky Corridor
As an experienced mortgage broker serving the Squamish and Whistler communities, I often work with clients from the US or those earning US income who are looking to invest in our beautiful corner of BC. Whether you’re seeking a vacation home, an investment property, or a place to eventually call home, understanding the ins and outs of non-resident lending is crucial for a smooth mortgage experience.
Squamish is not exempt from the prohibited areas. However, Whistler, Pemberton, Furry Creek, and Pemberton have some exemptions. Before you consider purchasing in the Sea to Sky corridor, refer to the Prohibition on the Purchase of Residential Property by Non-Canadians Act. There are exemptions based on census metropolitan areas or census agglomerations.
See the CMHC map to confirm specific addresses:
Who is considered a non-resident?
In the eyes of Canadian lenders, a non-resident is anyone who is not a Canadian citizen or permanent resident and does not live in Canada. This includes US citizens and anyone earning income primarily outside Canada.
Key mortgage requirements for non-residents
If you’re a US citizen or have US-based income, here’s what you need to know before applying for a mortgage in the Sea to Sky corridor:
1. Down payment
- Non-residents are typically required to provide a minimum down payment of 35% of the property value.
- These funds must come from your own resources, and you’ll need to provide proof that the funds have been in your account for at least 90 days prior to closing.
2. Income and credit verification
- Lenders will require comprehensive proof of income, which may include recent pay stubs, employment letters, US tax returns, and bank statements showing income deposits.
- A US credit report is usually requested. If you don’t have one, alternative forms of credit verification, such as reference letters from US banks, may be accepted.
- Business-for-self income (BFS) is not considered for non-Canadians.
3. Property eligibility
- Not all property types are eligible for non-resident lending. While owner-occupied and second homes are generally allowed, there may be restrictions on recreational, investment, or certain strata properties.
- If you’re purchasing for investment purposes, expect additional scrutiny and possibly stricter requirements.
4. Legal and tax compliance
- As a non-resident, you’ll need to comply with Canadian legal and tax requirements, including potential withholding taxes on rental income or capital gains when you sell.
- US citizens may also be subject to additional due diligence due to cross-border regulations like FATCA (Foreign Account Tax Compliance Act).
The application process: what to expect
- Documentation: Be prepared to provide a detailed paper trail for your income, assets, and down payment. Lenders want to see that your funds are legitimate and traceable.
- Enhanced due diligence: US citizens may go through extra steps in the approval process to ensure compliance with both Canadian and US regulations.
- Closing logistics: All mortgage documents must be signed in Canada. Out-of-country signing is not permitted, so plan your travel accordingly.
Local insights: Squamish and Whistler
The Sea to Sky corridor has highly desirable markets for US buyers, but inventory can move quickly, and lending policies are strictly enforced. Working with a local broker who understands the nuances of non-resident lending—and has relationships with lenders familiar with cross-border transactions—can make all the difference.
Tips for a successful non-resident mortgage application
- Start gathering your documentation early—especially proof of down payment and income.
- Be transparent about your income sources and property intentions.
- Consult with a cross-border tax specialist to understand your obligations in both countries.
- Work with a broker who can guide you through lender-specific requirements and help you avoid common pitfalls.
Final thoughts
Securing a mortgage as a US citizen or with US income in the Sea to Sky corridor is absolutely possible, but it requires careful planning and a proactive approach. By understanding what lenders expect and working with a knowledgeable local broker, you can confidently navigate the process and achieve your real estate goals in these stunning BC communities.
If you have questions about non-resident lending or want to explore your options, reach out—I’m here to help you every step of the way.
Prohibition on the Purchase of Residential Property by Non-Canadians