Property Buying Guide in Canada

 

Canada welcomes people from all over the world and is home to different ethnicities and races. No potential buyer faces any issues or restrictions regarding property purchase. If you wish to buy a property in Canada, here is a guide on how you can start with it:

  1. Foreign ownership

The real estate property of foreigners in Canada has no connection with their citizenship- even the Canadian citizens who don’t live in the country for more than six months are marked as non-residents. Hence, everyone is subjected to the same rules.

Any person who is not a permanent resident or citizen of Canada is treated as a non-resident and is subjected to a Speculation Tax of 15% of the purchase price for properties bought in these cities:

  • Peterborough
  • Northumberland
  • Niagara
  • Hamilton
  • Dufferin
  • Bran
  • Toronto

It is important to keep in mind that being the owner of a Canadian property doesn’t provide you with immigration opportunities.

  1. The finance of property purchase in Canada

If you plan to buy a Canadian property, you need to make a bigger down payment of around 35%. If you plan to request a loan from banks, you need to verify your revenue and show your credit scores, ensuring you can pay the mortgage.

The mortgage rates for non-Canadian citizens are higher but still extremely attractive.

  1. Taxes involved in purchasing property in Canada

It is important to get in touch with a real estate agent to fully understand the tax perspective when purchasing or selling a property in Canada.

  • Non-residents purchasing a property in Toronto should pay a 15% tax on closure.
  • While purchasing a property, non-resident buyers pay similar land transfer taxes as citizens.
  • Those who want to use their bought property as a primary residence are eligible for land transfer tax rebates.
  • A non-resident has some tax implications to look after when selling a property.

 

  1. Get a life-changing offer for a Canadian real estate

During the pandemic, signing and other documentation to buy a property was done virtually. Using Zoom and other apps, it was easier to get information and advice from Canadian real estate agents. Chinese people could contact a Chinese real estate agent to learn all about a property, even if there were physically not available.

However, with the situation getting better, the dealings have again become physical, and people are visiting Canada to see a property and crack a deal.

  1. Pick the most suitable real estate agent for yourself.

Before you decide, make sure you choose a local expert who knows the intricacies of foreign ownership in the Canadian property market.

Find a real estate agent who can easily sell properties to non-Canadians and refer you to suitable attorneys, lenders, and other professionals according to your situation.

Also, pick a real estate agent who has efficient knowledge to preview properties for unavailable clients and is familiar with high-tech tools.

These are some of the points to keep in mind if you, as a non-resident, want to buy a property in Canada.