60-second summary
A Canadian buying in Florida has three viable financing paths.
The first is a cross-border mortgage from a Canadian-owned US bank such as RBC Bank (Georgia), BMO (US), or TD Bank, NA. These lenders use your Canadian credit history, accept 20% down, and treat you as an established borrower. Rates are close to standard US conforming rates plus a foreign-national premium of roughly 1 to 2 percentage points.
The second is a US foreign-national mortgage from a non-QM (non-Qualified Mortgage) lender. These programs require no US credit, no SSN, and no US tax returns. Down payment typically runs 25% to 35%, rates are higher, and the process is documentation-heavy.
The third is a DSCR (Debt Service Coverage Ratio) loan, used by Canadian investors. Qualification is based on the property's rental income, not personal income. Down payment typically runs 20% to 30%.
Florida's SB 264 ("foreign countries of concern" restrictions) does not apply to Canadians. There is no federal or Florida law preventing a Canadian citizen from owning Florida residential property. The friction is at the lender, not at the title.
Why this article exists for a Canadian buyer
You are a Canadian citizen, tax-resident in Canada, and you want to buy a property in Florida. You do not have a US Social Security number, you do not file a US tax return, and your income, savings, and credit history sit in CAD inside a Canadian bank or brokerage.
US mortgage rules were not designed for you. The default underwriting framework (Fannie Mae and Freddie Mac) assumes a US credit profile, US income documents, and a US tax return. Most major American retail banks will simply decline a borrower who cannot deliver those. That is not a refusal of you as an applicant. It is a consequence of how their loan files are sold into the secondary market.
This guide explains the three lender categories that do underwrite Canadians, what each will ask of you, what the practical numbers look like in 2026, and how the Florida purchase mechanics differ from a Quebec mortgage you may already know.
Foreign national mortgage: the operating definition
A "foreign national mortgage" is a US residential loan made to a borrower who is not a US citizen, not a US permanent resident (Green Card holder), and does not file a US tax return as a US tax resident. Canadian citizens living in Canada fit this definition by default.
The category exists because the standard US conforming mortgage market, run through Fannie Mae and Freddie Mac, generally requires the borrower to have a US credit profile and US-source income that fits a Qualified Mortgage (QM) box. A foreign national typically fails the QM box on paper, even when their financial position is stronger than a typical US borrower. Lenders address this with separate loan programs that price and underwrite the foreign borrower as a distinct risk class.
Verified fact: As of April 23, 2026, the average US 30-year fixed rate was 6.23% (Freddie Mac Primary Mortgage Market Survey).[1] This rate is for US residents with a domestic credit profile. Foreign national rates run higher, with a typical premium of 1 to 2 percentage points above this benchmark.[2]
Typical range: A Canadian citizen buying a Florida second home or investment property in April 2026 should expect a quoted rate in the 7.25% to 8.50% band on a foreign-national or DSCR program, depending on lender, down payment, property type, and whether the loan is fixed or ARM. Cross-border banks (RBC Bank, BMO, TD Bank) often quote closer to standard US rates because they use your Canadian banking relationship to assess credit risk. Treat any quote outside this band as an outlier, in either direction, and ask the broker to explain why.
The three financing paths Canadians actually use
Path 1: Cross-border bank (the easiest path for most Canadians)
Three Canadian bank groups operate US subsidiaries that explicitly serve Canadian buyers in the US: RBC Bank (Georgia), N.A.; BMO Bank N.A. (formerly BMO Harris); and TD Bank, N.A. Their value proposition is that they recognise your Canadian credit bureau file (Equifax Canada, TransUnion Canada) and your Canadian banking history as the basis for underwriting.
Verified fact: RBC Bank states that it qualifies Canadian applicants based on Canadian credit history and offers fixed-rate periods of 3, 5, 7, or 10 years amortised over 30 years, with a 20% minimum down payment and no prepayment penalty.[3] RBC Bank is a US-chartered bank (Member FDIC, NMLS #878077), separate from Royal Bank of Canada, but owned by it.
Typical range: Cross-border bank closing time on a Canadian-financed Florida purchase: 40 to 45 days from application to funding, in line with RBC Bank's published estimate.[3]
Why this path matters for a Canadian: you are not graded as a foreign national in the US sense. You are a known cross-border client whose Canadian file is legible. The trade-off is that the cross-border banks generally focus on second homes, primary residences, and certain investment properties, with stricter property-type rules than non-QM lenders. They typically do not underwrite condotels, non-warrantable condos, or short-term-rental properties, where US foreign-national specialists are more flexible.
Path 2: US foreign-national mortgage (non-QM specialist)
If the cross-border banks decline (often due to property type, loan size, or borrower file complexity), the next path is a US non-QM lender that specialises in foreign borrowers. These lenders do not require a US SSN, US credit, or US tax returns. They build the file from international documents.
Typical range: Down payment for a foreign national mortgage in Florida runs 20% to 40% of purchase price, with most programs landing at 25% to 30% for second homes and 30% to 35% for investment properties.[4][5] Reserve requirements (months of payment held in a US account post-closing) typically run 6 to 12 months. Rates are 1 to 3 percentage points above the standard US 30-year rate, depending on program.
The lender will substitute international references for US credit. A bank reference letter from your Canadian bank attesting to good standing is standard. Canadian credit bureau reports are accepted by some programs. Income is documented through Canadian T4s, Notices of Assessment, employment letters, or, for the self-employed, business financials and corporate documents.
Path 3: DSCR loan (for investment properties)
A DSCR loan qualifies the borrower based on the property's projected rental income divided by the property's debt service (principal, interest, taxes, insurance, and HOA). If the ratio meets the program threshold, often 1.0 to 1.25, the loan can close without verifying the borrower's personal income at all.
Typical range: DSCR program down payment is generally 20% to 30%, rates run 1 to 2 percentage points above standard, and the property must be non-owner-occupied.[2][4] DSCR is the most common program used by Canadian investors building Florida rental portfolios.
The DSCR structure is most useful when the Canadian buyer's personal income is hard to document in a US-friendly way (self-employed, complex Canadian corporate structure, rental portfolio income), but the Florida property itself underwrites well on its own cash flow.
Down payment, reserves, and source of funds
Across all three paths, the lender wants to see three things on the cash side: the down payment is real, it is yours, and it can be traced.
Verified fact: US lenders require down payment funds to be in a US bank account (under the borrower's name) prior to closing, and most require the funds to have been "seasoned" for 60 to 90 days, meaning they must show as a stable balance, not a recent transfer.[5] Funds cannot be a gift in most foreign-national programs.[5][6]
Typical range: Closing costs for a Canadian financing a Florida purchase typically run 3% to 5% of the purchase price, including title insurance, lender fees, recording fees, Florida documentary stamp tax on the deed and mortgage, intangible tax on the mortgage, and prepaid items (taxes, insurance, escrow). Wind and flood insurance can add materially in coastal counties.
Opinion: For most Canadian buyers, the practical bottleneck is not the rate or the down payment percentage. It is the seasoning of US-account funds. Open a US bank account (RBC Bank, BMO, TD Bank, US, or a US institution that accepts Canadian-resident applicants) at least 90 days before you intend to close. This is the single highest-leverage prep step.
Florida vs Quebec: the cross-border comparison
The table below maps the structural differences between a Florida mortgage to a Canadian non-resident and a Quebec mortgage to a resident borrower, at the explicit jurisdictional level on each side.
| Topic | Federal US | State (FL) | Federal CA | Provincial (QC) |
|---|---|---|---|---|
| Loan structure | 30-year fixed, or ARM (3/5/7/10-year fixed period). 30-year amortisation is standard. | Same as federal. Florida adds documentary stamp tax on deed and mortgage, plus intangible tax on mortgage. | 5-year fixed term is the standard, with 25-year amortisation (or 30 for some uninsured products). The "term" and the "amortisation" are different concepts. | Same federal framework applies. Notarial deed required at closing in Quebec (act of mortgage). |
| Rate type | Fixed for the full term is offered (true 30-year fixed). | Same as federal. | Fixed-rate term is typically 5 years. The rate is renegotiated at term renewal. | Same federal framework. |
| Stress test | None at the federal level for foreign nationals. Qualifying ratios are program-specific. | None at FL state level. | OSFI B-20 stress test applies. Borrowers must qualify at contract rate plus 2 percentage points. | Same federal framework applies. |
| Prepayment | Most US foreign-national and cross-border programs allow prepayment without penalty.[3] Some investment-property loans charge step-down penalties (5/4/3/2/1) in the first five years.[7] | No FL-specific rule. | IRD (Interest Rate Differential) or three-months-interest penalty is standard on closed mortgages. | Same federal framework. |
| Down payment for non-resident purchase | No federal floor for foreign nationals. Lender programs set 20% to 40%. | No FL state floor. | A Canadian buying in Canada as a non-resident typically needs 35% down (lender policy, not federal law). | Same federal framework. |
| Foreign buyer ban | No federal foreign-buyer ban on residential property. Florida SB 264 restricts only "foreign countries of concern" (China, Russia, Iran, North Korea, Cuba, Venezuela, Syria); Canadians are not affected.[8] | SB 264 affidavit may still be required at closing in counties near military installations or critical infrastructure, even from non-restricted foreign nationals.[8] | Prohibition on the Purchase of Residential Property by Non-Canadians Act extended through January 1, 2027.[9] Restricts most non-Canadians from buying residential property in Canada. | Same federal framework. Quebec has no provincial foreign-buyer tax (unlike BC and Ontario). |
| Closing professional | Title company or real estate attorney handles closing in Florida. | Florida is an attorney-state-optional jurisdiction; closings often run through title companies. | Notary handles closing in Quebec (provincial jurisdiction). | Notarial deed mandatory in Quebec. Lawyer handles in common-law provinces. |
A worked example
Consider a Canadian buyer financing a 600,000 USD condo in Fort Lauderdale, Florida, as a second home, in April 2026. The buyer is a Quebec tax resident with an established Canadian credit profile, files with RBC Bank under their cross-border mortgage program, and chooses a 5-year ARM at 6.75% (illustrative, within the 1 to 2 point premium band over the April 2026 benchmark[1][3]).
| Line item | Amount (USD) | Notes |
|---|---|---|
| Purchase price | 600,000 | |
| Down payment (20%) | 120,000 | Must be seasoned in a US account before closing.[5] |
| Loan amount | 480,000 | |
| 5-year ARM rate (illustrative) | 6.75% | After 5 years, adjusts every 6 months per ARM terms.[3] |
| Amortisation period | 30 years | |
| Estimated principal and interest, monthly | 3,113 | Approximate, before taxes/insurance/HOA. |
| Florida documentary stamp tax on deed | 4,200 | 0.70 USD per 100 USD of price (varies by county; Miami-Dade differs). |
| Florida documentary stamp tax on mortgage | 1,680 | 0.35 USD per 100 USD of mortgage amount. |
| Florida intangible tax on mortgage | 960 | 0.20 USD per 100 USD of mortgage amount. |
| Title insurance (estimate) | 3,300 | Florida promulgated rate, owner's policy. |
| Lender, recording, and prepaid items (estimate) | 8,000 to 12,000 | Varies. |
| Total estimated cash to close | approximately 138,000 to 142,000 | Excludes inspection, appraisal, wire fees. |
Opinion: A Canadian buyer evaluating Florida purchases should run the same property at three financing scenarios (cross-border bank at 20% down, US foreign-national at 30% down, DSCR at 25% down on rental projection) before deciding which structure is most efficient. The right answer is rarely the lowest down payment.
Common mistakes Canadians make
The following are recurring traps observed in Canadian foreign-national files, drawn from lender practice notes and industry sources.[5][10]
-
Wiring the down payment too late. Funds arriving 7 to 10 days before closing trigger anti-money-laundering review delays. Move the funds 30 to 60 days before closing, document the source clearly (sale of asset, bonus, refinance proceeds), and wire from a single account where possible.[10]
-
Assuming Canadian rate quotes apply. A Canadian buyer who hears that 5-year fixed is at 4.04% in Canada[11] often expects similar rates in Florida. The relevant US benchmark is 6.23% as of April 23, 2026, before the foreign-national premium.[1] The two markets are priced off different bond curves.
-
Confusing "term" and "amortisation." A US "30-year fixed" mortgage is fixed for 30 years. A Canadian "5-year fixed, 25-year amortisation" is fixed for 5 years only. When comparing, isolate which variable you actually want to lock.
-
Neglecting the property-type filter. Condotels, non-warrantable condos (where less than 50% of units are owner-occupied, or where there is special-assessment litigation), and short-term-rental properties are often declined by cross-border banks. Confirm the building is approved by your lender before signing the purchase contract.
-
Skipping the SB 264 affidavit. Florida law requires the buyer to sign an affidavit at closing attesting they are not a "foreign principal" from a foreign country of concern.[8] Canadians sign without restriction, but the form is part of the closing package and missing it delays funding.
-
Forgetting the ITIN if rental is planned. If the property will be rented, the IRS requires an ITIN (Form W-7) to file Form 1040-NR or to elect "net basis" taxation under IRC § 871(d), which lets the owner deduct expenses against rental income. Filing without an ITIN forces 30% gross-receipts withholding by the property manager. Apply for the ITIN early; processing time is approximately 7 to 11 weeks.[12]
-
Letting Canadian-side documents lapse. Bank reference letters, employment letters, and Notices of Assessment must be dated within 30 to 60 days of underwriting. Files stall when these documents go stale mid-process.
Action checklist
The following sequence is calibrated to a Canadian buyer financing a Florida purchase from Canada.
- Decide your budget in USD. Apply a CAD/USD buffer of at least 5%. Do not assume rate parity; the rate moves daily.
- Open a US bank account (RBC Bank, BMO, TD Bank, US, or a US bank that accepts Canadian-resident applicants). Fund it with the intended down payment plus 6 to 12 months of carrying costs.
- Pull and review your Canadian Equifax and TransUnion bureau reports. Resolve any inaccuracies.
- Pre-qualify with at least two lenders: one cross-border bank and one US non-QM specialist. Compare rate, term, and property eligibility.
- Engage a Florida-licensed real estate broker who has actively closed transactions for foreign nationals in your target county.
- Obtain a written pre-approval (not just a pre-qualification) before submitting offers.
- If buying in a coastal county, obtain wind and flood insurance quotes during the option period, not after.
- Confirm the building (if a condo) is approved by your lender. Request the most recent budget, reserves, and 40-year reserve study (Florida SB-4D for buildings 30+ years old).
- Apply for an ITIN (Form W-7) if you intend to rent the property or if your lender requires it.
- Wire the down payment 30 to 60 days before closing. Provide the lender with a complete source-of-funds chain.
- Sign the SB 264 buyer affidavit at closing. Sign remotely via apostilled documents if you cannot travel.
- After closing, set up automated mortgage payments from your US account, register for Florida property-tax mailings, and file Canadian Form T1135 if your aggregate foreign property exceeds 100,000 CAD in cost amount.
FAQ
Can a Canadian get a mortgage in Florida without ever visiting the US?
Yes. RBC Bank, BMO, and several US foreign-national lenders close transactions remotely, with documents executed by apostille or at a US embassy/consulate.[3][13] Some title insurers still require a US notary for specific documents; confirm at the start of the file.
Do I need an ITIN to get a mortgage?
Not always. Some foreign-national programs accept a passport plus international references in lieu of an ITIN. An ITIN is required for tax filing if the property will be rented, and is generally easier to apply for with the same accountant who will file your 1040-NR.
Can I deduct the US mortgage interest on my Canadian taxes?
Generally no, if the property is a personal-use second home. Mortgage interest deductibility on the Canadian side depends on the use of the property (rental versus personal). Consult a cross-border tax specialist; this guide does not give tax advice.
Will a Florida mortgage affect my Canadian credit score?
US mortgages do not report to Canadian credit bureaus, so the loan itself does not affect your Canadian score. However, if you co-borrow with a Canadian credit account (e.g., a HELOC against your Canadian property to fund the down payment), that account does affect your score.
Is the 35% down payment rule mentioned for "non-residents in Canada" the same in Florida?
No. The 35% non-resident-in-Canada minimum is a Canadian lender rule for non-residents buying in Canada.[14] Florida foreign-national mortgages typically start at 20% with a cross-border bank[3] or 25% to 30% with a US non-QM lender.[4][5] Different jurisdictions, different floors.
What happens at the end of an ARM's fixed period?
The rate adjusts every 6 months thereafter, indexed to a benchmark plus a margin set in the loan note. RBC Bank's published example shows the initial fixed rate followed by 6-month adjustments through the remaining 25 years of a 30-year amortisation.[3] Most Canadian buyers refinance or sell before the adjustment phase begins.
Does FIRPTA affect me when I buy?
No. FIRPTA is a withholding regime that affects the Canadian seller of US real estate, not the Canadian buyer. When you eventually sell the Florida property, FIRPTA will withhold 15% of gross sale price from your proceeds, subject to exceptions. See the FIRPTA guide in the Sale chapter.
Honest scope statement
This guide is written from a Quebec reference for the Canadian-side comparison, in line with the editorial standard of the canadaflorida.com manual. Equivalent provincial-side comparisons for Ontario, British Columbia, and Alberta are forthcoming, and the federal-Canada side of the comparison applies to all provinces.
The specific cross-border bank pricing and program structures referenced (RBC Bank, BMO, TD Bank, US) are subject to change and reflect publicly disclosed terms as of late April 2026. Quoted rates and down payment thresholds shift with the bond market and lender appetite. Treat any number in this guide as a directional benchmark, not a quote.
This article does not address the immigration question of how long a Canadian can stay in Florida (B1/B2 status, Substantial Presence Test, Form 8840 closer-connection). See the dedicated guides in the Immigration chapter.
Editorial team and disclosure
This guide was produced under the editorial standards of canadaflorida.com, the reference manual for Canadians who buy, sell, live, or inherit in Florida. Every figure is sourced to a primary regulatory or industry authority. Verified facts, typical ranges, and editorial opinions are explicitly labelled and never mixed.
Essential disclaimer
This article is educational. It is not legal, tax, mortgage, or immigration advice, and reading it does not create a professional relationship between you and any contributor or institution mentioned. Mortgage products, rates, eligibility rules, and government regulations change frequently. Confirm any specific number, eligibility rule, or procedure with a Florida-licensed mortgage loan officer (NMLS-listed), a Canadian-side cross-border tax specialist, and a Florida real estate attorney before acting.
Full educational disclaimer
This article is published for educational purposes only. It does not constitute legal, tax, mortgage, immigration, accounting, financial-planning, or real estate advice, and no attorney-client, advisor-client, or fiduciary relationship is created by reading it.
The information presented is current as of the last reviewed date shown in the front matter. US federal rules (IRS, CFPB, HUD), Florida state law (Florida Statutes, FDOC, Department of Financial Services), Canadian federal rules (CRA, OSFI), and Quebec provincial rules can change without notice, and lender programs change daily. The numbers, percentages, and ranges in this guide should be treated as directional benchmarks, not as commitments by any institution and not as a substitute for a written rate lock or pre-approval.
Cross-border real estate, tax, and mortgage matters are jurisdictionally complex. Before signing a purchase contract, locking a rate, opening a US bank account, applying for an ITIN, or filing any cross-border return, the reader must consult a Florida-licensed mortgage loan officer (verifiable on NMLS Consumer Access), a Florida real estate attorney admitted to practice in Florida, and a Canadian or cross-border tax specialist (CPA in Canada, EA or CPA in the US, or a dual-qualified practitioner). The reader is responsible for verifying that any third party identified in this article is currently licensed, in good standing, and qualified for the specific matter.
External links are provided for the reader's convenience. canadaflorida.com does not control, endorse, or assume responsibility for the content, terms, or availability of any third-party website. The reader assumes all risk of using external resources.
Limitation of liability: To the maximum extent permitted by applicable law in both Canada and the United States, the publisher, the editorial team, and any contributor disclaim liability for any direct, indirect, incidental, consequential, or special loss arising from the use of, or reliance on, the information in this article. The reader is solely responsible for the consequences of any decision taken in reliance on the content.
Jurisdictions: this article addresses US federal law (notably IRS regulations, FATCA, FIRPTA), the law of the State of Florida (Florida Statutes, FDOC rules, Florida Real Estate Commission), the law of Canada (CRA, OSFI, Prohibition on the Purchase of Residential Property by Non-Canadians Act), and, where comparison is offered, the law of Quebec as a reference province. Equivalent comparisons for other Canadian provinces are forthcoming.