Author: Premela R.

Most of our clients are from Canada – but where are they buying and why?

Clients are from Canada

While America Mortgages has clients from most countries globally, Canada by far is where most of our clients come from.

This is consistent with public information released by the National Association of Realtors; in year-ended March 2020, Canadian’s purchased $9.5B of U.S. residential real estate!

If we assume an average home price of $500,000, that equates to a staggering 19,000 home purchases!

As the top U.S. mortgage specialist specifically focused only on Expats and Foreign Nationals living in Canada, the customer data we have would be considered as the best representation of “real” demand.

In this article, we wanted to dig a little deeper into where they are buying and why.

Here is our data over the past 12 months for Canadian buyers:

  • – Loans funded: 137
  • – Average loan amount: $460,000
  • – Client location: Ontario 52%, Vancouver 33%, Edmonton 5%, Montreal 3%, Others 7%
  • – Top 3 purchase locations: Orlando, FL; Atlanta, GA; Charlotte, NC

Orlando, Florida

Orlando is a natural fit for Canadians, especially those living in Ontario. They share the same time zone, and it’s only a 3-hour flight from Toronto to Orlando. It’s no secret that winters in Canada (and especially Toronto) can be long and harsh, which is why many choose to buy second homes in Florida to escape the cold. Of course, Orlando’s reputation for being an affordable location with social and economic benefits also helps with its popularity. The average home price in Orlando is $293,000 vs C$870,000 for an average home in Toronto. With tourism and job market growth in leisure and hospitality at their highs, it’s no wonder Forbes ranked Orlando as their #1 Best Place to Buy a House 3 years in a row.

Atlanta, Georgia

Atlanta ticks many boxes and is an underappreciated place for many but offers great value for those looking to take advantage of the recent demographic shift inwards for coastal cities. A little unknown fact is that the Atlanta International Airport is the busiest airport in the world, with over 110 million passengers a year! Beijing #2 at 100 million passengers (2019). Let that sink in a little. A city of 500,000 people has the world’s busiest airport. That is because geographically, it’s perfectly located as a travel hub and hence a growing trend for companies to expand their headquarters there – like Google and Blackrock. Meanwhile, the population growing by 12.18% in the last 8 years – 111% faster than the national average of 5.76%. That also means the area’s annual job growth has risen to the rate of 2.15%. Affordability is a key driver for many real estate investors looking for a strong rental yield. The median purchase price of a 3 bedroom single family home at only $190,000, 15% lower than the national average of $222,000.

Charlotte, North Carolina

Charlotte is not an obvious choice to own property in, but digging a little deeper, we found that it has been one of the best cities to own real estate over the past 10 years. The supply of homes is at a 17 year low, 8 years of home price increases with no signs of slowing down. Another fact that surprises many is that Charlotte has the second-most banking assets after New York City, with Bank of America and Wells Fargo having their regional headquarters there. Meanwhile, CNBC recognizes Charlotte as the third-best city in the country to start a business.

It was also surprising to find out from our clients in Canada that Toronto was only a 2-hour direct flight from Charlotte!

How America Mortgages can help…

Unlike a traditional bank, which can only show you their own bank programs, which are by definition rigid and hard to qualify for, we are a solutions provider. We understand your requirements and suggest several loan options that best suit your requirements; this could be from banks or wholesale lenders, which are unknown by many accounts for 70% of the mortgage lending market. For example, if you are an entrepreneur, you can almost assume you would not be able to qualify for a bank loan. The trouble is banks will drag this on for 3-4 months before rejecting your loan. Our Loan Officers are all experts working with Foreign National and Overseas Expat clients – that is all we do! When you tell us your requirements, we already know from our database of 150 U.S. lender programs that best suits your needs. (Also see Can a Canadian Buy a House in the USA?)

For more details, please visit us at www.americamortgages.com

Vacation homes buoyant as the U.S. prepares to open up.

Vacation Homes Buoyant

Despite the slow reopening of workplaces nationwide, a new report by Redfin shows that demand for vacation homes– otherwise known as short-term rentals –is soaring at a record pace.

One reason for the rise in demand can be attributed to vacationers wanting to keep their distance from strangers in shared hotel spaces. Now, with the developing accessibility of the COVID-19 vaccines, more people are planning their future get-aways. A recent Vacasa review of U.S. vacationers revealed that 59% said they intend to vacation in spring 2021. Additionally, 52% said they would choose to stay in a vacation rental more regularly. A study by the National Association of Realtors also found a 16% increment in second-home purchases in 2020.

Rise in remote work

Another reason for the increased demand could also be due to more affluent families having more opportunities to do their jobs remotely for the foreseeable future. The increase in remote work for individuals in white-collar positions implies that families could leave urban cities and set up for business in more modest, remote towns.

Redfin chief economist Daryl Fairweather said, “The combination of the wealthy becoming wealthier, remote work turning into the new normal, and low mortgage rates is creating an ideal environment for affluent Americans to buy vacation homes,”

“As long as the economy continues to grow, I don’t foresee demand for second homes slowing down anytime soon,” she added.

Fortunes may have genuinely turned for the vacation home market since the start of the coronavirus crisis. But as a real estate investor, what does this mean for you?

From having a stable cash flow to obtaining tax benefits, investing in real estate can have several advantages. It’s also an excellent way to increase wealth over time. New investors can take advantage of this by getting in on this heightened interest for second homes being bought as vacation rentals.

America Mortgages has programs for both Foreign Nationals and U.S. Expats. Our U.S. Expats programs are exactly what you would find at your bank back home. We work with lenders in all 50 states, and we are sure to find the best loan option available for your needs. We also provide solutions for U.S. Citizens who have been “away from home” for an extended period and lack the depth of credit. No U.S. credit? No problem! America Mortgages has loan programs that accept your overseas credit and income. As Expats ourselves, we not only understand the challenges you face living abroad while trying to obtain U.S. mortgage financing, we live it.

Schedule a call with our U.S. mortgage specialist today at www.americamortgages.com

Sources: Redfin & Marketwatch

As Millennials exit states with a higher cost of living, now is the time to invest in U.S. real estate in Texas, Florida, and Colorado.

International Mortgage Specialists

The number of luxury home sales rose 41.6% in the first quarter of 2021. According to Redfin, “luxury” homes sell for an average of $975,000, while “expensive” homes sell for an average of $429,000. Low interest rates and record-low home prices are helping many Americans buy high-end houses. This strategy is also helping millennials avoid expensive cities like San Francisco and New York.

Despite high-end properties that are over the asking price are getting multiple offers, according to Redfin agent Katy Polvorosa.

As we see it, it seems like the right time to invest in U.S. real estate in Texas, Florida, and Colorado. Aside from the higher rental yields, these states can provide improved cash flow to investors.

“This is consistent with what we see in America Mortgages, especially with foreign nationals looking to buy investment properties, mainly in Texas and Florida.”

Robert Chadwick

Texas Real Estate

Due to its diverse economy, Dallas real estate is very attractive for people of all income levels. Its low homeownership rate makes it the perfect place to invest. As interest rates rise, renting is becoming more affordable than buying. The demand for rental units has increased over 14% within the last year, making it perfect for investing in Dallas real estate.

Austin, Texas, is also another excellent place to invest in real estate. In the last 5 years, it has come to be known as another tech hub making its housing market very sizable. Its home values have more than doubled since 2010.

There are tons of high-paying tech jobs in Austin. As Austin is getting older, Millennials will become the largest buyers and renters in 2021, and this trend will continue. We believe investing in Austin real estate is a great market, as there is a huge scarcity of homes for sale in Austin, and more Millenials don’t see a value in owning.

Why should you invest in Texas properties?

The Texas real estate market has plenty of investment properties for sale. The real estate market in Dallas, Austin, and Houston is very active, and volumes of trade are high, and housing stock moves fast. This means it is relatively easy to exit investments and find a buyer for your home.

Florida Real Estate

In 2021, Florida is one of the best places to invest in real estate. This metropolitan area is also one of the most visited tourist attractions in the U.S. There are plenty of opportunities in this real estate market. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns.

Why invest in Florida Real Estate?

Florida’s real estate market is known to some as the hottest real estate market in the U.S. The housing market in Orlando, Tampa Bay, Lakeland, and Ocala is still growing steadily, with prices remaining low. Properties have a good chance of appreciation in the next couple of years. There is a huge demand for single-family homes in Florida, and with a strong renters market, we think this is a great place to invest in real estate and reap its yields and benefits.

Colorado Real Estate

Colorado Springs is a great place to invest in real estate in 2021. Its robust real estate market has continued to grow at a fast pace.

Colorado Springs’s real estate market is relatively affordable, with a median home price of around $320,000 and a monthly rent of approximately $1,600. Its proximity to Denver will make it more attractive to people looking to buy a home there. It is also important to note that the average home price in Denver in 2018 was $500,000. In short, you can buy two homes in Colorado Springs for the price of one in Denver.

Compared to other states, Colorado Springs has proven to be one of the best places to invest in rental real estate. What better time to do this than now when mortgage rates remain low?

At America Mortgages, we have eliminated many unnecessary steps to create a simple and easy process for our clients. We focus only on U.S. Expats and Foreign Nationals living overseas, and we offer over 150 U.S. bank and lender programs direct to our international clients. Our team of U.S. mortgage specialists are ready to help you! Schedule a call with us today!

For more information, please contact [email protected].

Sources: HousingWire & Redfin

Great Real Estate Reshuffling

Great Real Estate Reshuffling

According to a survey by Zillow, 1 in 10 Americans has moved in the past 12 months. With the COVID-19 vaccine implementation and the economy and housing market recovering, Zillow predicts that this number could increase to more than 40 percent in 2021; this means that millions of households could enter the housing market in 2021.

What prompted the Great Reshuffling?

A significant cause of the Great Reshuffling is due to the fact that work-from-home became a norm during the pandemic. Homebuyers quickly caught on to the fact that they can live and work in their dream home and location as long as they have an internet connection. Approximately 75% of those surveyed reported moving for positive reasons, such as being closer to their family, friends, or simply living in their desired part of the country.

Many cities, known as “secondary cities” across the country, have seen a massive influx of movers looking to take advantage of bigger homes with lower prices. According to Zillow, there has been an uptick in the number of people moving to the South over the past year.

The rise in people moving to more affordable areas has triggered a wave of first-time buyers. This is especially true in Phoenix, Charlotte, N.C., and Austin. Zillow’s data also showed the highest for-sale inventory climb in 4 major real estate areas – Los Angeles, Chicago, San Francisco, and New York.

We see this as an excellent opportunity for real estate investors, as over the past couple of months, the housing markets outside of the urban areas have flourished. “We have created a process specifically for our overseas clients which is easier, faster, and more transparent than international banks.” Robert Chadwick, Co-Founder of GMG and America Mortgages.

At America Mortgages, we understand our global clients’ needs, and we provide solutions to match their needs. We make investing in U.S. real estate easy. Schedule a call with our mortgage specialists today.

For more information, please contact [email protected].

Sources: Housingwire.com & Realtrends

Rebranding to America Mortgages on April 13th!

mortgage advisors

Dear Friends of Global Mortgage Group,

We are excited to announce that we are officially rebranding our U.S. mortgage business to America Mortgages on April 13th.

Enjoy the selection of quotes from history’s greatest minds and investors, including Warren Buffett, Mark Twain, and Teddy Roosevelt. So the next time you need a little motivation to keep going, here are a few quotes for you to reflect on.

Here is the link to our new website where you will find new information about our company, loan programs, our new expanded team globally, as well as hundreds of new Articles, Mortgage IQ, Case Studies, and Think Pieces in our Learning Lab section.

New Business Initiatives

America Mortgages will be expanding our licensed mortgage offerings as well as applying to become a direct wholesale mortgage lender. This will enhance our already comprehensive US loan programs with more flexibility, better pricing, and qualifying options than ever before. These programs will be announced as they are finalized, so continue to watch this space.

Technology

Our technology plan remains unchanged, and we will launch our API this year where our global partners can connect to our platform and offer U.S mortgages directly on their own website.

Lastly, as many of you know, our ultimate goal is to use technology to further streamline the mortgage journey for our international clients, from origination directly to underwriting. Our software is currently in development which will serve as the backbone of our connectivity. Here is a link from our DemoDay in Seoul in 2019.

Since we only focus on Foreign National and U.S. Expats living overseas, we have already streamlined an existing process by working directly with our investors to create loan programs specifically for our clients, which has eliminated many unnecessary steps. We expect our technology and process to further improve processing time by up to 80%!

Global Mortgage Group

GMG will be rebranded to an international real estate financing specialist where we connect our clients around the world with our network of banks, private lenders, private banks, family offices, and investment funds for their real estate financing needs.

Not only will we continue to offer residential mortgages to the: UK, France, Canada, Australia, and Singapore, we will further expand our already-active coverage of high net worth clients, in Asia, by offering bespoke real estate financing solutions.

As we continue on our journey to improve how international investors finance their overseas real estate investments, we are thankful for the support over the years from our clients from 34 countries around the world (and increasing)!

If you would like to learn more, please don’t hesitate to call us.

Sign of Robert Chadwick

Robert Chadwick
Co-founder

Sign of Donald Klip

Donald Klip
Co-founder

Have an enquiry about International or U.S. Mortgages?

Contact us:
To Schedule a call: Click here
WhatsApp: +65 8499-3229 (Singapore)
Email: [email protected] / [email protected]

U.K. marketing VP buys investment condo in Philadelphia to boost passive income.

America mortgages

The Client

Our client had read about the tight housing supply in major college towns. He did some research and found Philadelphia as the best value.

How We Helped

Our client wanted to purchase a duplex very close to a university where he could rent to students. He had no U.S. credit, and to add to the complexity, he was self-employed and didn’t show his true ability to service the debt. We were able to get him 75% financing using his U.K. credit, and the debt servicing was structured solely around the projected rental income of the property he was buying.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.K Citizen $260,000 $195,000 70% 6.125% Interest servicing only payments
Term Address Property TypePurposeLoan Type
5/1 ARM Philadelphia, Pennsylvania Duplex Residence Purchase Residential
Nationality U.K. Citizen
Property Value$260,000
Loan Amount$195,000
LTV75%
Rate6.125% Interest servicing only payments
Term5/1 ARM
Address Philadelphia, Pennsylvania
Property TypeDuplex Residence
Purpose Purchase
Loan TypeResidential
Related Articles

See Other Cases

Swiss Citizen working as a chef in Munich buys an apartment in Ohio to rent out for income.

advisor mortgage group

The Client

Our client had a limited budget and nothing available back home or in Munich in his price range. He found a small Single-Family Home in Dayton, Ohio, and came to us about a loan.

How We Helped

Our client had two rental properties in Germany that yielded 1% on average and had appreciated less than 8% over a 10-year period. He wanted to put his money to better use, and after extensive research on various global markets, he picked Ohio. As he was referred to us by a colleague who had closed a loan with our parent company GMG last year, he knew the type of financing we could arrange.

No U.S. credit. No U.S. income. Limited down payment. No problem. We were able to arrange 70% financing and closed the purchase within 33 days of entering the contract.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Swiss Citizen $145,000 $101,500 70% 5.875%
Term Address Property TypePurposeLoan Type
30 year fixed Dayton, OhioSingle-Family Home Purchase Residential
Nationality Swiss Citizen
Property Value$145,000
Loan Amount$101,500
LTV70%
Rate 5.875%
Term30 year fixed
Address Dayton, Ohio
Property TypeSingle-Family Home
Purpose Purchase
Loan TypeResidential
Related Articles

See Other Cases

63-year-old French university professor releases equity from an investment home in St. Louis, Missouri.

mortgage specialists international

The Client

Our client came to us from an ad they saw on Facebook. He was reaching retirement age and wanted to buy a small business in Paris but needed additional funds.

How We Helped

Our client was 63 years old and concerned if he could qualify for a mortgage, the amortization period would be extremely short. When he spoke with one of our loan officers, this was his first concern. What makes the U.S. mortgage market unique is that every borrower is looked at the same. Regardless if you are 20 or 80, you still can qualify for a 30-year mortgage term, which makes servicing the monthly debt much more manageable.

We were able to get an equity release of 70% LTV even though the borrower was 63 years old, had no U.S. credit, and was nearing retirement. He was able to buy his business with the funds and enjoy his future retirement.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
French Citizen $580,000 $406,000 70%5.49% interest servicing only
Term Address Property TypePurposeLoan Type
10-year interest-only, which converts to a 30 year fixed St. Louis, MissouriSingle-Family HomeCash-out Equity release remortgage Residential
Nationality French Citizen
Property Value$580,000
Loan Amount$406,000
LTV70%
Rate 5.49% interest servicing only
Term10-year interest-only, which converts to a 30 year fixed
Address St. Louis, Missouri
Property TypeSingle-Family Home
Purpose Cash-out Equity release remortgage
Loan TypeResidential
Related Articles

See Other Cases

Australian family buys a home in Detroit for investment income.

mortgage specialist

The Client

Our client from Australia wanted to look for low-cost residential housing to earn investment income. They like the Midwest cities due to their low entry point.

How We Helped

Our client purchased a 3-bedroom property, which would give them the benefit of both yield and capital appreciation. They had no U.S. credit and a lumpy income from being self-employed, but we were able to structure a foreign national 30 year fixed loan. The entire transaction from loan application to closing was completed within 40 days, and the client never left Australia.

The entire transaction from loan application to closing was completed within 40 days, and the client never left Australia.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Australia Citizen $150,000 $105,000 70% 5.99%
Term Address Property TypePurposeLoan Type
30 year fixed Detroit, Michigan Single-Family Home Purchase Residential
Nationality Australia Citizen
Property Value$150,000
Loan Amount$105,000
LTV70%
Rate5.99%
Term30 year fixed
State Detroit, Michigan
Property TypeSingle-Family Home
Purpose Purchase
Loan TypeResidential
Related Articles

See Other Cases