Canadian Buyer Guidelines
The Coachella Valley and Palm Springs desert region is the perfect place to own a vacation home or investment property. Abundant golf courses, rich amenities, high-end shopping, and a celebrated sunny climate offer endless opportunities.
Purchasing a desert home is quite simple for Canadian citizens. Whether you are looking for a condo, single-family home, or a custom home site, we can help you find the perfect property to suit your desires.
Canadian buyers aren’t required to obtain a U.S Social Security number unless you plan on renting your property. We can assist you in filling out the necessary forms and guide you through the simple process of purchasing your choice of real estate.
Now is a great time to take advantage of:
- Historically low American real estate prices
- The best inventory of homes and condos to choose from in years
- Strong Canadian Dollar
- Solid Resort rental market for those who wish to rent out their property
What You Should Know About The Area
New Homes:
If you are considering a new home, our advice to you would be to visit a local Realtor before visiting new construction communities. A complimentary service, you will gain a professional vantage point on each community from a buyer’s prospective. Realtors may have inside information pertaining to builder incentives, and also can share offers that were placed by recent clients.
Loan Programs for Canadian Buyers:
Lenders do offer mortgages to Canadian buyers. Financing may be a great option during those times when the Canadian Dollar is valued below the American Dollar.
All you are required to do is to open a U.S. bank account before submitting your mortgage application. In order to finance a property, it must be classified as a second home or investment property, not a primary residence.
If you do choose to finance your property keep the following in mind:
- A United States residence is not required
- A 50% Down Payment is needed
- Must be financing a minimum of US$300,000
- There is not a pre-payment penalty for early pay-off
- Credit scores or credit reports aren’t required
- Loan programs are subject to change
We would be happy to refer you to several great mortgage companies that provide Canadian buyer programs in the area.
Property Taxes:
Riverside County charges annual property taxes, which are set at the rate of 1.25% of the appraised value of your property. Your appraised value will be determined by your purchase price, even if the previous property value was higher.
Annual property taxes are separated into two payments, made semi-annually. If you plan to buy your property using a loan, you may request that your lender roll these payments into your monthly mortgage payment or loan amount. This process is called impounding taxes and your lender will pay the taxes for you out of your loan.
Please note that some communities may also require a supplemental tax called Mello-Roos. This tax is used to fund new provisions for the community. A Realtor can tell you if a property is located in a Mello-Roos location.
