Refinancing a US Mortgage as a Canadian

When to Refinance Your US Property

Refinancing a US mortgage as a Canadian can lower your interest rate, reduce monthly payments, access equity through a cash-out refinance, or switch from an adjustable-rate to a fixed-rate mortgage. Common refinance scenarios include: rates have dropped since your original purchase, your property has appreciated significantly and you want to tap equity, your adjustable-rate mortgage is about to reset higher, or you want to consolidate debt.

Refinance Options for Canadian Owners

Rate-and-Term Refinance

Replace your existing mortgage with a new one at a lower rate or different term. This is the most common type and can reduce monthly payments significantly. For example, reducing a $400,000 mortgage from 7.5% to 6.5% saves approximately $266 per month or $3,192 per year.

Cash-Out Refinance

Refinance for more than you owe and receive the difference in cash. Most programs allow up to 70-75% loan-to-value for foreign national borrowers. Cash-out proceeds can be used for additional property purchases, renovations, or any other purpose. DSCR cash-out refinances are popular with Canadian investors who want to recycle equity into new acquisitions.

DSCR Refinance

If your property generates rental income, a DSCR refinance qualifies based on the property's cash flow rather than your personal income. This is often the easiest refinance path for Canadian investors with US rental properties, as it avoids the complexity of documenting Canadian income for US lenders.

Refinance Requirements for Canadians

Requirement	Foreign National Refi	DSCR Refi
Minimum Equity	25-30%	20-25%
Credit Requirements	Canadian credit accepted	Canadian or US credit
Income Documentation	T4, NOA, bank statements	Rental income only (lease/1007)
Seasoning Period	6-12 months from purchase	6 months typical
Cash-Out Available	Yes, up to 70% LTV	Yes, up to 75% LTV

Frequently Asked Questions