Section 01Why this guide exists in a Canadian buyer's life
A Canadian who finances the purchase of a Florida home generally borrows from a US-based lender or from the US arm of a Canadian bank (RBC Bank US, BMO Bank N.A., Scotiabank's US affiliate, Banque Nationale's Natbank, Desjardins Bank). All of these are subject to TRID because they are US creditors under Regulation Z. Whether the buyer is a snowbird, a permanent resident in waiting, or a non-resident investor, the same Loan Estimate rules apply to the loan file.
A Canadian who pays cash never receives a Loan Estimate. Cash buyers are still exposed to most of the closing costs discussed in this guide, in particular Florida documentary stamp tax on the deed, nonrecurring intangible tax on any future mortgage, title insurance, and recording fees. The structure of the disclosure simply differs.
The reason this topic matters in practice is that Canadian buyers tend to focus on the headline interest rate and the down payment. Two LEs from two competing lenders can show the same headline rate and the same down payment yet differ by ten thousand US dollars or more over five years once origination charges, points, and the choice of title company are factored in. The LE was designed precisely to expose those differences, but only if the buyer reads page 3 and not just page 1.
Section 02Page 1: Loan Terms, Projected Payments, and Costs at Closing
Page 1 of every LE is laid out the same way. The top quarter shows date issued, applicant name, property address, sale price, loan term, loan purpose, product, loan type, loan ID, and rate-lock status. The buyer should verify all of these match the application. An error here, especially in the property address or the loan type, can cascade into the rest of the form.
Loan Terms
The Loan Terms section discloses the loan amount, the interest rate, the monthly principal-and-interest payment, and three yes-or-no questions: does the loan have a prepayment penalty, does it have a balloon payment, and are any of these features going to change over the life of the loan. Each "yes" must be accompanied by the maximum dollar amount or the date the change occurs.
For a Canadian buyer, the most useful flag in this block is the box that asks whether the interest rate, the principal-and-interest payment, or the loan amount can increase after closing. On a thirty-year fixed-rate loan, all three should read "no". On an ARM or an interest-only loan, one or more will read "yes", and the buyer should treat the rest of the LE as describing only the initial period, not the loan's worst-case scenario.
Projected Payments
The Projected Payments table shows the borrower what the monthly payment will look like over the life of the loan. It includes principal and interest, mortgage insurance if applicable, and estimated escrow for property taxes and homeowners insurance. The bottom row, Estimated Total Monthly Payment, is the number a Canadian should compare against rent income or carrying-cost projections.
A separate line, Estimated Taxes, Insurance and Assessments, summarises the annualised cost of property taxes, homeowners insurance, hurricane and flood insurance where applicable, and any mandatory HOA dues. This line is the single most under-estimated number on a Florida LE for Canadian buyers. The reasons are practical: the lender often relies on the seller's prior-year insurance premium, which understates the true cost facing a new buyer in a coastal county where insurers reprice aggressively at policy turnover.
Costs at Closing
The bottom of page 1 contains two summary numbers. Estimated Closing Costs is the all-in fee total. Estimated Cash to Close is what the buyer must wire on closing day. The two are not the same: the cash-to-close figure also reflects the down payment, any deposit already paid, seller credits, lender credits, and prorated taxes.
A Canadian buyer reviewing page 1 should write down those two numbers and the projected total monthly payment. Three numbers, one per LE, are enough to make a first-pass comparison.
Section 03Page 2: Closing Cost Details
Page 2 itemises the closing costs in two columns and eight lettered sections. The left side, Loan Costs, captures everything the lender controls or has visibility into. The right side, Other Costs, captures third-party fees, government taxes, prepayments, and escrow funding.
Section A: Origination Charges
This section lists every fee retained by the lender or its affiliates. Common line items include an application fee, an underwriting fee, a processing fee, a rate-lock fee, and discount points if the borrower has bought down the rate. Discount points are expressed both in dollars and as a percentage of the loan amount.
For a foreign-national mortgage, origination charges tend to be heavier than for a US-resident loan. The lender is taking on additional underwriting work to verify Canadian income, foreign asset reserves, and tax residency, and prices that work into Section A.
Section B: Services You Cannot Shop For
These are services the lender requires and selects on the borrower's behalf. The borrower pays the fee but does not choose the provider. Typical entries are the appraisal, the credit report, the flood determination certificate, and any tax-service fees the lender demands. Section B fees are subject to zero tolerance under TRID, meaning the amount cannot rise between the LE and the CD unless a valid changed circumstance occurs.
Section C: Services You Can Shop For
These are services the lender requires but for which the borrower may select the provider. The lender must furnish a written list of acceptable providers, called the Service Provider List. Title insurance, settlement or closing agent services, the survey, and the pest inspection often appear here. If the borrower selects a provider from the lender's list, the fee stays in the ten-percent cumulative tolerance bucket. If the borrower selects a provider not on the list, the fee shifts to the unlimited bucket and the original LE estimate is no longer the comparison point.[3]
This subtle rule is where Canadian buyers most often leave money on the table. Choosing a title company off the lender's list typically saves money but also unlocks the lender from the ten-percent ceiling. The right move is usually to shop around among the providers on the list, not off it, unless the off-list quote is clearly and dramatically lower.
Section D: Total Loan Costs
Section D is simply A + B + C, the strict cost of the loan as opposed to ancillary closing costs. It is the cleanest single number for an initial comparison between two lenders quoting on the same loan amount and term.
Section E: Taxes and Other Government Fees
This block shows recording fees and Florida state-level transfer taxes. There are three relevant Florida items, and they confuse Canadian buyers because they do not match the Quebec, Ontario, BC, or Alberta land-transfer tax model.
The documentary stamp tax on the deed is levied at 0.70 USD per 100 USD of the sale price in every Florida county except Miami-Dade, which uses 0.60 USD per 100 USD on a single-family residence (with a 0.45 USD per 100 USD surtax on non-single-family transfers). The legal authority is Section 201.02, Florida Statutes. In Florida custom, the seller pays this tax in most counties.[4] A Canadian buyer reading the LE often sees this line at zero on the buyer's side and assumes Florida is cheaper than home, which is a misread. The tax is paid; it just sits on the seller's side of the closing statement. Miami-Dade is the most frequent exception, where local custom can vary.
The documentary stamp tax on the promissory note is levied at 0.35 USD per 100 USD of the loan amount, regardless of county, under Section 201.08, Florida Statutes. The buyer pays this tax, and it is the line that most often shows up in Section E of a Canadian buyer's LE.[4]
The nonrecurring intangible tax on the mortgage is levied at 2 mills, that is 0.002 US dollar per dollar of mortgage amount, equivalent to 0.2 percent of the loan amount, under Section 199.133, Florida Statutes. The buyer also pays this tax. Although the lender is technically the taxpayer, lenders pass the cost through to the borrower as a closing-cost line item, and the FL DOR explicitly contemplates this practice.[5]
Section F: Prepaids
Prepaids are amounts the borrower pays at closing for periods that begin at closing. The four standard items are the first year's homeowners insurance, prorated daily interest from closing day to the end of the month, the first installment of any mortgage insurance, and the first year of flood or wind insurance where required. Prepaids sit in the unlimited tolerance bucket, on the theory that property taxes, insurance premiums, and interest are not within the lender's control and were originally disclosed on a good-faith basis.
Section G: Initial Escrow Payment at Closing
If the loan is escrowed, the lender collects a cushion of property tax and insurance reserves at closing, typically two to three months of each. Section G shows that initial deposit. Like prepaids, escrow funding sits in the unlimited tolerance bucket.
Section H: Other
Section H captures any closing cost that does not belong elsewhere. Common entries are the owner's title insurance policy (which is optional in Florida and which the buyer should generally take), HOA capitalisation or transfer fees, condominium estoppel fees, and any non-required third-party inspection or warranty.
Section 04Page 3: Comparisons, Other Considerations, and Confirm Receipt
Page 3 is the page built for shopping. It contains three numbers designed to expose differences between competing lenders that page 1 does not show.
The three shopping numbers
In 5 Years is the total amount the borrower will have paid in principal, interest, and finance charges in the first sixty months of the loan, plus the principal that will have been repaid in that window. A Canadian who realistically expects to sell or refinance the Florida property within five years should weight this number heavily.
Annual Percentage Rate (APR) is the standardised total cost of credit calculated under 12 CFR § 1026.22. It includes the note rate, points, lender origination fees, certain mortgage broker fees, and certain prepaid finance charges. It is almost always higher than the headline interest rate. Two LEs at the same headline rate but with materially different APRs are telling the borrower that one lender is loading more fees into the deal.[6]
Total Interest Percentage (TIP) is the total interest paid over the full term, expressed as a percentage of the loan amount. On a thirty-year fixed-rate loan at six percent with no points, the TIP is roughly 116 percent. On the same loan with two discount points and a five-and-three-quarter percent rate, the TIP drops but the upfront cost rises, so the comparison only makes sense if the borrower also looks at In 5 Years and APR.
Other Considerations
The Other Considerations block confirms the buyer's right to receive a copy of the appraisal, whether the loan is assumable by a future buyer, the late-payment fee, that refinancing is not guaranteed, and that loan servicing may be transferred. None of these is unique to Florida or to foreign-national loans; all are TRID-mandated.
Confirm Receipt
Page 3 ends with a signature line. Signing the Loan Estimate creates no obligation to proceed with the loan. It only acknowledges that the borrower received the form. To actually proceed, the borrower must communicate "intent to proceed" to the lender, in writing or by another method consistent with the lender's policy. Until the borrower indicates intent to proceed, the lender cannot collect any fee other than the cost of pulling a credit report.[3]
Section 05How a US Loan Estimate compares to a Canadian mortgage disclosure
Canada has its own federal disclosure regime, but it operates through different statutory authorities, applies to different institutions, and uses a different document. The table below states the comparison at the correct jurisdictional level on each side.
| Item | Florida side (US federal + FL state) | Canadian side (federal + provincial) |
|---|---|---|
| Statutory source | TRID rule, 12 CFR § 1026.19(e) and § 1026.37 (US federal, CFPB). State taxes via Sections 201.02, 201.08, and 199.133, Florida Statutes (FL state). | Bank Act, sections 627.57 and following, plus Cost of Borrowing (Banks) Regulations SOR/2001-101 (federal CA). Provincial cost-of-borrowing rules layer on top in Quebec, Ontario, and elsewhere. |
| Form used | Standardised three-page Loan Estimate (Model Form H-24). | Information Box at the front of the disclosure statement, format prescribed by Schedule 1 of the regulations. No standardised three-page form. |
| Delivery deadline | No later than the third US business day after the lender receives the six pieces of information that make up an "application". | Before the borrower is bound by the agreement. No fixed three-day federal rule. |
| Binding nature of fees | Fees split into zero, ten-percent cumulative, and unlimited tolerance buckets. Lender owes a cure if it exceeds a binding tolerance. | No federally mandated tolerance buckets. Lenders disclose fees but the regime relies on plain-language and good-faith disclosure rather than a tolerance-and-cure mechanism. |
| Comparable APR-style number | APR plus TIP plus In 5 Years on page 3, all standardised. | APR on the Information Box. No five-year total or total interest percentage required. |
| Final disclosure equivalent | Closing Disclosure, delivered at least three US business days before consummation. | No equivalent "final disclosure" with a federally mandated three-day cooling-off period. The borrower instead reviews the closing statement on signing day, often at the notary (Quebec) or lawyer (other provinces). |
| Who pays transfer tax on the deed | In Florida custom, the seller pays the 0.70 USD per 100 USD documentary stamp tax in most counties. | Borrower pays the provincial transfer tax (Quebec mutation tax, Ontario LTT, BC PTT, etc.). |
Equivalent province-by-province comparisons (Ontario LTT detail, BC PTT detail, Alberta land-transfer flat-fee model) are forthcoming in Chapter 01.
Section 06Tolerances and the lender's cure obligation
The TRID rule does not freeze the LE. It allows fees to move between the LE and the final Closing Disclosure under controlled rules. Knowing which fees can move and by how much is what gives the LE its predictive value.
The first category, zero tolerance, applies to fees the lender controls or has direct access to: origination charges in Section A, transfer taxes in Section E, and any Section B service for which the lender did not authorise shopping. Zero tolerance means the dollar amount cannot rise between the LE and the CD. If it does, the lender owes the borrower the difference.
The second category, ten-percent cumulative tolerance, applies to recording fees and to Section C services where the borrower either did not select a provider or selected one from the lender's written list. The ten-percent test is run on the aggregate of all such fees, not fee by fee. One line item can rise twenty percent and still be within tolerance if the basket as a whole is up no more than ten.
The third category, unlimited tolerance, applies to homeowners insurance premiums, property tax escrow, prepaid interest, HOA dues, condominium fees, and Section C services where the borrower chose an off-list provider. Unlimited tolerance does not mean unbounded: the lender must have made a good-faith estimate based on the best information reasonably available at the time the LE was issued.
A revised Loan Estimate may be issued only when a "valid changed circumstance" occurs, the borrower requests revisions, or the rate is locked after the initial LE. A revised LE must reach the borrower no later than four US business days before consummation. A revised LE cannot be issued on or after the date the Closing Disclosure has been provided.[7]
Section 07Worked example: comparing three Loan Estimates
Assume a Canadian non-resident buying a 500,000 USD condominium in Hollywood, Broward County. Down payment is 35 percent, so the loan is 325,000 USD, thirty-year fixed, no points, no mortgage insurance. The buyer obtains LEs from three lenders. The headline rate is the same on all three: 6.50 percent. The buyer assumes the offers are equivalent. They are not.
| Comparison line | Lender X | Lender Y | Lender Z |
|---|---|---|---|
| Headline note rate | 6.50% | 6.50% | 6.50% |
| Origination charges (Section A) | 1,950 USD | 4,750 USD | 1,500 USD + 1 point |
| Discount points value | 0 | 0 | 3,250 USD |
| Total Loan Costs (D) | 5,800 USD | 8,200 USD | 7,900 USD |
| Section E (note stamps + intangible) | 1,788 USD | 1,788 USD | 1,788 USD |
| APR (page 3) | 6.62% | 6.74% | 6.59% |
| In 5 Years (page 3) | 132,400 USD | 134,200 USD | 130,900 USD |
| Total monthly P&I (page 1) | 2,054 USD | 2,054 USD | 2,054 USD |
A buyer comparing only the monthly payment or the headline rate concludes the three offers are equal. A buyer comparing only the origination charges concludes Lender Z is the most expensive. A buyer reading page 3 concludes Lender Z is actually the cheapest under a five-year holding horizon, despite the points, because the rate buy-down lowers In 5 Years total cost by approximately 1,500 USD compared to Lender X and 3,300 USD compared to Lender Y. Lender Y's higher origination charges quietly add roughly 2,400 USD to total cost without buying any rate reduction in return.
Section 08Common mistakes Canadian buyers make on the LE
The first mistake is comparing nominal interest rates and ignoring APR. APR exists precisely to neutralise differences in fees and points between lenders. Two lenders at the same headline rate can sit a quarter-point apart on APR, which translates to thousands of dollars over the life of the loan.
The second mistake is treating origination charges as fixed. Origination charges on a foreign-national loan are negotiable in practice, especially when the borrower carries strong reserves and a clean credit file. A 1 percent origination charge on a 350,000 USD loan represents 3,500 USD; reducing it to 0.5 percent saves 1,750 USD against the same rate.
The third mistake is accepting the LE's homeowners insurance projection. On a Florida coastal property, the lender's projected homeowners insurance line frequently understates the premium that the actual underwriter will quote a new buyer. The buyer should obtain an independent insurance quote from a Florida-licensed broker against the property address before lock-in, not after, because the LE's projected line affects both the Section F prepaid amount and the Section G escrow funding.
The fourth mistake is failing to shop the title company. Section C fees are negotiable when the borrower selects a provider from the lender's list. Title insurance premiums in Florida are filed with the state and are largely uniform, but settlement agent and closing fees vary, and savings of 500 USD to 2,000 USD on a single closing are realistic.
The fifth mistake is treating the LE signature as a commitment. Signing the LE only acknowledges receipt. The borrower remains free to walk away to another lender at no cost beyond the credit report fee, until the borrower issues "intent to proceed".
The sixth mistake is missing the Florida tax structure. Reading "doc stamp" as a single 0.70 percent line and sliding past it leaves the buyer surprised at closing when the note stamps (0.35 percent of the loan), the intangible tax (0.2 percent of the loan), and the recording fees show up separately on the buyer's side, while the deed stamps (0.70 percent of the price) sit on the seller's side under custom but appear on the closing statement.
The seventh mistake is ignoring the rate-lock status box on page 1. If the rate is not locked at the time the LE is issued, all interest-rate-dependent charges, including points, are estimates only. They will be repriced, and a new LE issued, when the rate is locked. The borrower should ask the lender, in writing, when the rate-lock window opens, how much it costs to extend, and what triggers a re-priced LE.
Section 09Buyer checklist: from LE delivery to intent to proceed
- Confirm the LE arrived within three US business days of submitting the application. If it did not, the lender is non-compliant; document the delivery date in writing.
- Verify the property address, loan amount, term, loan type, and rate-lock status on page 1 against the application.
- Write down the three page-1 numbers: monthly principal-and-interest, Estimated Total Monthly Payment, and Estimated Cash to Close.
- Compare those page-1 numbers against page 3 APR, TIP, and In 5 Years. If a lender's monthly payment looks low but APR is high, the cost is hidden in fees.
- Read Section A line by line. Identify any application, underwriting, processing, or rate-lock fee. Ask the lender, in writing, to break out the foreign-national premium if one exists.
- Read Section B. These fees are zero-tolerance, so the LE numbers are very close to what will appear at closing.
- Read Section C. Look at the lender's Service Provider List. Decide whether to shop on-list (preserves the ten-percent ceiling) or off-list (resets to unlimited tolerance, but may unlock real savings on title and settlement).
- Read Section E. Confirm that note stamps are calculated at 0.35 percent of the loan amount and intangible tax at 0.2 percent of the loan amount.
- Cross-check the Section F homeowners insurance number against an independent Florida insurance quote, ideally one based on a 4-Point inspection plus wind mitigation report.
- Repeat the exercise on at least two more LEs from competing lenders. Use APR and In 5 Years, not headline rate, as the comparison metric.
- Write to the chosen lender to confirm "intent to proceed". Until that statement is delivered, the borrower owes nothing beyond the credit report fee.
- Ask the lender, in writing, when the rate lock will be set and what the lock period (30, 45, 60 days) costs.
Section 10Frequently asked questions
Does a Canadian non-resident receive the same Loan Estimate as a US resident? Yes. The TRID rule applies to the loan, not to the borrower's tax residency. Any closed-end consumer mortgage on US real property issued by a US creditor falls under 12 CFR § 1026.19(e). The pricing inside the LE may differ (origination charges and rates often run higher on foreign-national loans), but the form and the tolerance regime do not.
Is the Loan Estimate the same as the mortgage commitment letter Canadian buyers receive at home? No. The LE is a federally mandated cost-disclosure form delivered after application but before underwriting commitment. A Canadian "engagement hypothécaire" or commitment letter is closer in function to the US "loan commitment" or "underwriting approval" that comes later, after the lender has reviewed income, credit, appraisal, and title. They are different documents at different stages.
What happens if the lender misses the three-business-day deadline for the LE? The lender is non-compliant with TRID. The CFPB and state regulators can open enforcement action. From the borrower's perspective, the practical remedy is to escalate to the lender's compliance officer in writing, document the delay, and consider switching lenders. The TRID rule does not impose a private right of action on individual borrowers for late LE delivery, but it can void rate locks and create leverage in negotiation.
Can a Canadian buyer waive the LE delivery period? The seven-business-day waiting period between LE delivery and consummation can be waived only in a "bona fide personal financial emergency", with the borrower's signed statement describing the emergency. Pre-printed waiver forms are prohibited under 12 CFR § 1026.19(e)(1)(v). A normal Florida closing schedule does not qualify as an emergency.
What if the Closing Disclosure shows a fee that increased above its tolerance? The lender must cure the violation within sixty US calendar days of consummation, either by refunding cash or by issuing a corrected Closing Disclosure with a lender credit. The borrower should not sign the CD without first comparing line-by-line against the most recent LE and, if a tolerance violation is visible, asking the lender or the closing agent in writing to identify the cure mechanism.[7]
Does a Canadian who pays cash receive any of these forms? No. Cash buyers do not trigger TRID. The closing process still involves a settlement statement (typically the ALTA Settlement Statement), title insurance, recording fees, and Florida transfer taxes, but there is no LE and no CD.
Are the page-1 monthly payment and the page-3 APR connected? Yes, by formula. APR is calculated under 12 CFR § 1026.22 using the disclosed finance charge, the disclosed payment stream, and the loan amount. Increases in points or origination charges, all else equal, raise APR without changing the monthly payment. That is the entire purpose of disclosing both numbers.
Section 11What this guide does not cover
This guide stops at the Loan Estimate. The Closing Disclosure, which arrives three US business days before consummation and finalises every number on the LE, is treated separately in Reading the Closing Disclosure. Rate-lock mechanics, the foreign-national underwriting profile, and DSCR loans for investor cash-flow qualification each have their own dedicated guides in Topic 01.4. The Florida tax lines summarised in Section E above are covered in detail in Documentary Stamps Tax (0.70%), calculation and exceptions and Intangible Tax on the Mortgage in Topic 01.7.
Province-by-province comparisons of Canadian mortgage disclosure (Ontario, British Columbia, Alberta, Atlantic provinces) extend the table in this guide and are queued for production in the same chapter.
This guide is not legal, tax, accounting, or financial advice. It does not select a lender on the buyer's behalf. The decisions, including whether to lock the rate, whether to buy points, and which title company to use, must be made by the buyer with input from a Florida-licensed mortgage broker, a closing attorney, and where applicable a cross-border CPA.
Editorial team, CanadaFlorida Research drawn from primary public sources cited at the bottom of this guide: US federal regulations (Code of Federal Regulations, Title 12), Consumer Financial Protection Bureau guidance, Florida Statutes, the Florida Department of Revenue, and Canadian federal cost-of-borrowing regulations. Every figure, rate, threshold, and deadline is drawn from a verifiable primary source. The guide is updated whenever the underlying rules change. Last reviewed 2026-04-29.
Essential disclaimer Educational purpose only. This document is reference information. It is not legal, tax, accounting, real estate, immigration, or financial advice and does not create a client-professional relationship. Before any concrete decision involving a US mortgage application, a Canadian buyer should consult a Florida-licensed mortgage broker or loan officer, a Florida-licensed closing attorney, a cross-border CPA, and where appropriate a US tax attorney. Consultation with licensed professionals in the relevant jurisdiction is indispensable before signing.