As more and more Canadians take advantage of the low pricing of residential real estate in Arizona, financing these acquisitions for Canadian buyers has become more common. There are two options to consider: financing through a Canadian source (a home equity or personal line of credit) or financing with a U.S. bank for your Arizona purchase.

Financing in Canada and becoming an "all-cash" buyer in Arizona places you in a stronger position to negotiate on price for your purchase since the seller will be more confident of a close and influenced by the short escrow. Yet, a mortgaged purchase remains a very viable option for many buyers as well. As with any mortgage, the downpayment, rate and terms of the loan with be influenced by multiple factors such as your credit worthiness and whether the property will be used as investment or a second home. Generally, for Canadians, financing for an Arizona purchase does not need to be any more complex or stressful than any application for a comparable Canadian property.

If you are financing the purchase of a home in Arizona the following is likely:

• You will need a minimum of 25-30% downpayment and potentially 3-6 months of reserves to cover the mortgage costs of the home. Funds for downpayment and reserves will need to be demonstrated with recent bank statements.
• Depending on your work status the lender is likely to require copy of pay stubs to verify income or, if retired, copies of recent T2's and/or income tax returns.
• Other documents likely to be required are a Canadian passport and/or driver's licence.
• Some lenders may require a international credit report.
• When financing an investment home lenders may require a larger downpayment and/or may have other loan or approval restrictions although the credit markets continue to relax requirements for lower-risk investors.

With an appraisal on the home, the loan process generally takes between 3-4 weeks with more or less time needed depending upon timely execution of both documents and escrow events. Durnford Group's closing team and your access to our online Client Management Center ensures that you keep informed 24/7, with real-time access to your documents to keep you on-track and your escrow closing on time.

If you are considering financing and are ready to begin your search for a home we suggest you get pre-qualified as quickly as possible. While searching for your home as a pre-qualified buyer you will have the confidence of knowing the price range of your financed purchase and you'll also be in a stronger bargaining position with a potential seller.

We'll put you right in touch with the people that can put the best financing package in place whether up in Canada or with a lender right here in Phoenix. And we can direct you to experienced sources that could save you thousands on the currency exchange for your downpayment or cash purchase. Residential prices in the Valley have never been better, mortgage rates are at historic lows and Canadian currency is strong. So if you're still sitting on the fence today would be a great time to make that first move.

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