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I am looking to buy rental property in Canada for which they will pull my U.S. credit report to qualify me. I also want to buy a home in the U.S. for my permanent home. Wanting the best of both worlds, I was hoping that my debt levels won't increase, disqualifying me after making the Canada purchase. Does anybody know that if the debt for the Canadian property will show on my credit when it comes down to buying my U.S. home?
Thanks,
Paul
@Oh_Canada wrote:I am looking to buy rental property in Canada for which they will pull my U.S. credit report to qualify me. I also want to buy a home in the U.S. for my permanent home. Wanting the best of both worlds, I was hoping that my debt levels won't increase, disqualifying me after making the Canada purchase. Does anybody know that if the debt for the Canadian property will show on my credit when it comes down to buying my U.S. home?
Thanks,
Paul
Unless you are paying for the Canadian property in cash, then by default your debt levels will increase.
Even if the loan for your Canadian property does not appear on your US credit reports - and I don't know if they will or not - I believe you are still required to disclose your ownership and mortgage obligations on your loan application for a US property. The Uniform Residential Loan Application form does not appear to exclude non-US properties when it requires applicants to list their liabilities, which includes real estate loans.
I am not sure that a Canadian bank would report this trade line to a US credit bureau. Canadian credit bureaus are separate from US credit bureaus. I hold credit cards in both countries and the debt levels are not cross reported.
@mazinaige wrote:I am not sure that a Canadian bank would report this trade line to a US credit bureau. Canadian credit bureaus are separate from US credit bureaus. I hold credit cards in both countries and the debt levels are not cross reported.
Thanks Mazinaige. I have a credit card in Canada too and it's not reported. The only thing different here is that they are going to pull my U.S. credit to qualify me since this is where I have history. Once I purchase the Canadian house, do you think that will only get reported to the Canadian credit bureau?
Thanks!
In either case it would be mortgage fraud to not report it to a lender.
That aside, if the company that is financing the Canada house is pulling US credit bureau info, there is a strong chance that they do business in boht the US and Canada and in that case it would possibly report to both.
This is definitely a question for the bank you are applying with for the home in Canada. I'm sure there are some creditors in Canada which have the ability to report to US credit reporting agencies, but is the bank you are applying with one of them? I know RBC (Royal Banc of Canada) reports to the US credit reporting agencies, but I don't know if RBC reports debt secured by Canadian properties.
Regardless though, you would have to disclose all real estate you own on your loan application for the property here in the U.S, including property owned outside of the U.S.