A Mortgage and Property Buying Guide for Foreigners in Canada
posted in Mortgage News
Canada has some fairly liberal policies when it comes to buying property, and non-residents (foreigners) are afforded exactly the same ownership rights as residents. However, some states do have specific sets of rules that must be followed, examples of which can be found below:
- Non-residents are considered as being anyone planning to stay in Canada for six months or less, but if you plan to stay for longer, you’ll need to apply to be an immigrant. A real estate lawyer can advise you further.
A Non-resident Speculation Tax (NRST) of 15% on the purchase of residential property in the Greater Golden Horseshoe region of Toronto, by those not classed as citizens or permanent resident of Canada, was introduced by the government of Ontario in April 2017.
What is the buying process for foreigners in Canada?
The majority of house sales are conducted through a realtor, and if the seller is using a realtor, they will pay for the fees of their realtor, and yours. If they aren’t using one, then it’s important to agree on who is going to pay your realtors fees.
Then, you’d be advised to get a pre-qualified mortgage, so that you know exactly what you’ve got to work with, and an experienced mortgage broker can help you with this.
The next step is to find a property, and it helps to have a general idea of what type of home you’d like to buy and what your budget is, before you approach a realtor. Remember that you won’t be able to use a foreign bank to get your mortgage, so be sure to work with a Canadian mortgage broker from the outset.
Make life easier by hiring a real estate lawyer:
This can be immensely helpful for foreigners trying to buy property in Canada, as a real estate lawyer can guide you effortlessly through the often-complex intricacies of overseas property ownership, and help you sign contracts and transfer monies for the purchase.
Work with a mortgage broker:
It often makes sense to work with a mortgage broker, particularly as a foreigner, as they may be able to find a mortgage that’s more suitable for you outside of the regular lenders. With access to unique, preferential rates and in-depth knowledge and understanding of the current housing market in Canada, a mortgage broker is the smart choice when it comes to finding the best deals for your specific circumstances. They can also be especially useful if you’re self-employed, a contractor or own your own business, for example. However, be sure to check that your chosen broker is familiar with mortgages for foreign buyers.
Buying a property in Canada as a foreigner doesn’t have to be a stressful and complex process; work with those who have expertise in the area of overseas property buying and mortgages for foreigners, and there’s absolutely no reason why you shouldn’t be able to find your dream home, in a dream location and at a price that you can afford.