Foreign Nationals

Why Milo is better than a Canadian bank for U.S mortgages

By Milo

February 26, 2024 6 min read

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Why Milo is better than a Canadian bank for U.S mortgages

Canadian investors have long been drawn to the U.S. real estate market, enticed by the diversity and rich investment opportunities. Unlike the more familiar terrain of Canada, the U.S. offers a variety of real estate options that combine value with the potential for significant returns. Florida and California are prime examples, attracting 22% and 15% of Canadian investments respectively, thanks to their comparatively lower property prices and appealing investment prospects. The difference in property values is striking: while Toronto and Vancouver boast per square meter costs of $10,825.13 and $13,422.43, Miami's more approachable $5,952.44 illustrates the financial advantage of investing stateside. This price disparity not only positions the U.S. as an attractive market but also as a fertile ground for Canadians aiming to expand their portfolios with investments that promise growth and profitability.

Once Canadian investors find their ideal U.S. property, choosing the right lender becomes the next crucial step. Though Canadian banks may seem familiar, specialized stateside lenders like Milo offer tailored services for international investors, presenting a potentially more advantageous route. This comparison aims to clarify those options, guiding Canadians toward the most beneficial lending choice for their U.S. investment properties.

Milo: The direct lender for Canadian investors

Milo is a direct lender based in Miami, FL, specializing in providing mortgage services to foreign national investors, particularly serving Canadian investors. As a direct lender, Milo aims to streamline the U.S. mortgage process for investment properties, offering a comprehensive online platform that allows clients to complete the mortgage application and closing process remotely, a feature particularly appealing to international investors who may not be physically present in the United States.

The company offers a diverse range of investment programs tailored to meet the unique needs of its clientele. These programs are designed with the international investor in mind, ensuring that applicants are not required to provide documentation typically unavailable. Through the use of advanced logic, Milo's platform evaluates various data points to recommend the most suitable loan program for each investor's specific goals, thus simplifying the mortgage selection process.

Milo's approach to lending is distinguished by its understanding of and adaptability to the needs of Canadian investors, who represent a significant portion of its customer base. This knowledge allows Milo to offer services and loan programs that align with the preferences and requirements of Canadian nationals looking to invest in the U.S. real estate market.

Comparing Milo to Major Canadian Banks in U.S. Mortgages

When Canadian investors venture into the U.S. real estate market, choosing the right lending partner is crucial. Here, the comparison between Milo and traditional Canadian banks highlights key differences in their approach to U.S. mortgages for Canadian investors.

Remote Process Completion: Milo stands out for its fully online platform, enabling Canadian investors to initiate and complete their mortgage process remotely. This contrasts with the approach of major Canadian banks, which often require face-to-face meetings with a loan officer, potentially complicating the process for Canadians not residing near border areas or those with time constraints.

Flexibility in Loan Programs: Unlike Canadian banks, which predominantly offer personal income loans, Milo provides a diverse array of loan programs tailored to the unique needs of investors. This includes options that do not solely rely on personal income for qualification. For example, Milo's cash flow loan program evaluates the projected income from the property and its debt-service coverage ratio (DSCR), offering a pathway for investors who might not qualify under more traditional metrics.

Speed of Closing Deals: Milo's technological approach and specialized loan programs allow for a faster closing process, often within 5 to 21 business days for various loan types, including bridge and personal income loans. This efficiency is particularly beneficial for investors working within tight timelines. In contrast, the loan process at Canadian banks can extend between 45 to 60 days due to a reliance on extensive documentation and the more conservative nature of personal income loans, potentially jeopardizing timely investment opportunities.

Milo's platform offers Canadian investors significant advantages in terms of convenience, flexibility, and speed when seeking U.S. mortgages. This comparison underscores the potential limitations of traditional Canadian banking options for those looking to invest in the U.S. real estate market, especially for those seeking more innovative or flexible financing solutions.

Navigating the U.S. real estate investment landscape, Canadian investors have distinct advantages with Milo. Its remote, flexible, and swift mortgage solutions starkly contrast with the more traditional, slower processes of Canadian banks. Milo's specialized services for foreign nationals simplify the complex process of investing in U.S. property, making it an appealing option for Canadians seeking efficient, tailored financing options.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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