Guide for Non-Resident Buyers

Guide for Non-Resident Buyers

I understand that many of the people who are interested in buying real estate in Windsor-Essex are not residents of Canada. Here are the answers to some of the most common questions about buying for non-residents:

 

Who can buy Real Estate in Canada?

Anyone - there are no limits on where a buyer is from to purchase real estate in Canada. Financial institutions may have their own limits on how many properties they will finance for buyers from outside the country.
 

Does owning property in Canada help my immigration application?

Owning property in Canada does not have any effect on an immigration application.

 

I am a Canadian living abroad - am I considered a non-resident buyer?

If you live out of the country for more than half the year then yes, you are considered a non-resident buyer.

 

I am a non-resident and want to purchase property with a resident. How is that application considered?

You will be treated as a non-resident buyer if there is a non-resident as part of the buyer group.

 

Financing for Non-Resident Buyers:

Can I get a mortgage as a non-resident buyer?

Yes – you will usually be subject to needing a higher downpayment (35% of the purchase price as opposed to the regular 20%), but different banks can have variations in their requirements for this.

 

What is required for a non-resident to get a mortgage in Canada?

There are a few things that are normally required:

  • The 35% downpayment

  • Proof of employment and that income is in Canadian or U.S. currency

  • Reference letter from your own bank and three months of bank statements

  • Canadian Credit Check

 

Does being a non-resident buyer impact my interest rate?

No - you can get the same interest rate as Canadian residents. Depending on which country you residing in, you may only be able to get a fixed-rate mortgage, however.

 

Do my rental properties outside of Canada count towards my income when applying for a mortgage?

Usually, only Canadian rental income will count towards your income when applying for a mortgage in Canada.

 

When do you I have to have my down payment available from a Canadian bank?

You will usually have to have the down payment money available in a Canadian bank at least thirty days before closing.

 

Will my closing costs by any different as a non-resident buyer?

No - your closing costs should be the same as for a Canadian resident.

 

Am I eligible for the same rebates and tax benefits as a Canadian buyer?

Government programs such as the first-time buyer program are only available to Canadian residents.

 

Do I have to have a mortgage to buy property in Canada?

If you have all your funding available in cash, you do not need a mortgage to buy property in Canada.

 

Finding and Buying Property in Canada

How do I find property in Canada?

I can help you learn about the available Canadian properties that fit what you’re interested in. Online listings and other resources are a great way to find out about what’s out there, and to learn more about the areas you might want to invest in.

 

How do I find tenants for our rental properties in Canada?

As a real estate professional, I can walk you through all of the options you have to locate tenants, manage rental properties, and more.

 

Taxes for Non-Residents

What kinds of taxes will I have to pay?

You will need to to pay the land transfer tax, annual property tax, and income tax on properties you own in Canada.

For more information on the specific procedures for paying these taxes, consult with an expert in Canadian taxes.

 

What kind of closing costs are there?

Normally, a deposit, property appraisal, and home inspection will have to be paid for before the property closes.

On closing, you will have to pay the remaining balance of the purchase, legal fees, insurance, commissions, land transfer tax, and any other applicable fees and taxes. I can walk you through the closing costs you are looking at when you purchase a home in Canada.

 

What do I do when it comes time to sell my property?

Talk to a tax professional about the taxes associated with selling your property in Canada. The Canadian Government will withhold 25% of the gross selling price in most cases until the exact taxes owed have been determined and paid. There are alternatives to this, which a professional can present to you.

 

Working with a Real Estate Agent

Should I work with a real estate agent in Canada?

Yes! An agent like me can help you find properties, navigate the entire buying process, and works in your interests when buying a home in Canada.

 

 


 Albert Kantarjian
Albert Kantarjian Salesperson (519) 816-4222 (519) 251-1611

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