Most Canadians who buy in Florida pay cash, so many own their Florida property outright. That equity can be borrowed against without selling. Three things decide the answer: how you use the property, what kind of building it is, and whether the rent covers a new payment.
About 75% of Canadian buyers in Florida paid cash, according to Florida Realtors, 2025 Profile of International Residential Transactions in Florida.
The Short Answer
A cash-out refinance on a property you own outright is a new first mortgage. For a Canadian living in Canada it usually comes from a US foreign national program, and many of those programs do not require a Social Security number or a US credit history. The loan is capped as a share of the appraised value, commonly 60% to 70% on a foreign national cash-out and lower for some condos and condotels. On a rental, the lender then checks that the rent covers the new payment, including taxes, insurance and association dues.
Figures on this page reflect published program parameters as of October 2026. They vary by lender, property and borrower and change often, so confirm current terms before relying on any number.
Start Here: How Do You Use the Property?
This question sorts every Canadian file, and it has to be answered accurately, because occupancy is part of what the lender underwrites.
| How you use it | How it is usually financed | What that means |
|---|---|---|
| Rented out; you rarely or never stay there | Foreign national DSCR cash-out, a business-purpose loan | Qualified on the rent. These programs are built for this case. |
| You spend part of the year there and rent it the rest | Usually a second-home loan, not a rental loan | Under the CFPB’s Regulation Z commentary, a rental the owner expects to occupy for more than 14 days in the coming year is not treated as non-owner-occupied. Second-home options for non-residents are fewer and follow consumer-loan rules. |
| Only you and your family use it | Second-home financing | Rent is not the qualifier; the lender reviews you as a borrower. |
Tell your loan officer exactly how you use the property today and how you plan to use it after closing. Rental (DSCR) programs are built for property the owner does not live in, and an accurate answer up front is the only way to land on a loan that fits.
How Much Cash Can You Take Out?
Two limits apply, and the lower one wins.
- The leverage cap. A foreign national cash-out commonly tops out around 60% to 70% of the appraised value. Condos, condotels and 2–4 unit properties often sit at the lower end.
- The rent test. On a rental, the rent has to cover the new monthly payment: principal, interest, taxes, insurance and association dues. Many programs look for a ratio of about 1.0 or higher, and some set a higher bar on a cash-out.
- The minimum loan. Most programs also have a minimum loan amount, commonly $75,000 to $150,000.
A hypothetical example
- A Clearwater condo appraises at $400,000 and is owned free and clear.
- At a 65% cap, the largest loan is $260,000.
- Closing costs, the appraisal, title and Florida’s taxes on a new note and mortgage come out of the proceeds, so the cash in hand is less than the loan amount.
- If the unit rents for $2,900 a month and the new payment with taxes, insurance and dues is $2,600, the ratio is $2,900 ÷ $2,600 = 1.12, which clears a 1.0 test. If higher dues or insurance push the payment to $3,100, the ratio drops below 1.0 and the loan amount usually has to come down.
This is an illustration, not an offer or a quote. Run your own numbers in the cash-out calculator.
If the Property Is a Condo
Much of the Florida property Canadians own outright is condominium, and the lender underwrites the building along with the unit.
- Warrantable or not. Lenders sort condo projects by whether they meet standard project guidelines. A non-warrantable project, for example one with heavy investor ownership, pending litigation or a single owner holding many units, narrows the lender list and usually lowers the cap. See options for a non-warrantable condo.
- Condotels. Units in buildings run like hotels, with a rental desk and short stays, are their own category with fewer programs and lower leverage.
- Rental rules. Many Florida associations set minimum lease terms or limit how often a unit can be rented. The lender works from the rent the association actually allows.
- Florida’s condo safety laws. Since 2022, Florida has required many condo buildings three stories or taller to complete milestone structural inspections and structural integrity reserve studies, and associations can no longer waive reserves for key structural items. Lenders commonly ask whether these are done and whether special assessments are pending, because both affect the building’s eligibility and your monthly cost.
- Insurance and dues. Rising association dues and insurance raise the payment the rent has to cover, which can lower how much you can take out.
How Long You Have Owned It
Cash-out programs commonly want 6 to 12 months of ownership before they lend against today’s appraised value. Owners who bought years ago clear this easily. If you bought with cash recently, some programs offer delayed financing, which lets you borrow back up to what you paid shortly after a cash purchase. Rules vary by program; see seasoning requirements.
What a Canadian Borrower Typically Provides
- Canadian passport, plus proof of your Canadian address
- A Canadian credit report (Equifax Canada or TransUnion Canada) where the program uses one
- Recent bank statements showing reserves, often several months of the new payment
- The current lease or rental history; the appraisal also estimates market rent
- Insurance declarations, and the association’s contact for its condo questionnaire
- The deed, showing how title is held
Check how title is held before you apply. Some programs lend to individuals; others require a US LLC. Moving a property from your own name into an LLC can have US and Canadian tax and legal consequences, so talk to a cross-border attorney or CPA before changing title. See LLC requirements for foreign nationals.
What You Can Do With the Cash
Common uses include a down payment on another US rental, renovating the property, or paying down other investment debt. A cash-out on a rental is a business-purpose loan, and lenders commonly ask you to confirm how the proceeds will be used. If the money is for personal use, say so up front; it can change which programs fit.
The loan and the proceeds are in US dollars. Keeping the cash in US dollars for a US purchase avoids a currency conversion. Converting it to Canadian dollars adds exchange-rate exposure on a US-dollar loan.
Cash-Out or Sell?
A cash-out refinance is borrowing, not a sale, so FIRPTA withholding does not apply and you keep the property and its rent. Selling ends the ownership but brings FIRPTA withholding at closing and reporting of the gain in both countries. The trade-offs are laid out in selling vs. cash-out refinancing for Canadian owners.
Other Ways Canadians Tap Florida Equity
- A cross-border mortgage from a Canadian bank’s US subsidiary. Usually offered to existing clients of that bank, and it may also cover second homes.
- Borrowing against a Canadian home. A HELOC or mortgage puts the debt on your Canadian home, and some lenders restrict using the funds for property abroad.
- Selling the Florida property. See the comparison above.
The Canadian investor guide compares these routes side by side.
How Viador Partners Helps
Viador Partners is based in Tampa. Chad Evers (NMLS #2822744) reviews Canadian-owner scenarios directly and places loans through Focus Home Mortgage Inc. NMLS #2769672. Send the city, an estimate of the value, how you use the property and what you want the cash for, and you will get a read on which programs could fit and what they would need from you.
Frequently Asked Questions
Often, yes. US foreign national programs lend to Canadian residents on Florida rentals without a Social Security number, and many accept a Canadian credit report instead of US credit. The loan is commonly capped at about 60% to 70% of the appraised value, and on a rental the rent has to cover the new payment. Terms vary by lender and property.
Not on many foreign national programs. Lenders commonly use an Equifax Canada or TransUnion Canada credit report, your passport and verified assets instead. Requirements vary by program.
Possibly, but usually not with a rental (DSCR) program. Under the CFPB's Regulation Z commentary, a rental the owner expects to occupy for more than 14 days in the coming year is not treated as non-owner-occupied, so the loan is typically handled as a second-home loan, which follows consumer-loan rules and has fewer options for non-residents. Tell the lender exactly how you use the property.
No. FIRPTA withholding applies when a foreign person sells or otherwise disposes of US real property. A refinance is a loan against property you keep. Changing how title is held in order to get a loan can be a different matter, so check with a cross-border CPA before moving title.
Yes, cash-out proceeds are a common source of the down payment on another US rental. The lender on the next purchase will want the proceeds documented from the refinance closing.
Educational information only. Not a commitment to lend, and not tax or legal advice. Programs, limits and pricing are set by the lender and vary by borrower, property and state. Loans are originated through Focus Home Mortgage Inc. NMLS #2769672.