Acquiring a house is the most critical aspect of everyone’s life. It could be for retirement, family, or even leisure purposes. Have you ever thought of buying your first home in Canada? Are you looking to buy a non-resident house in Canada? If the answer is yes, then here are several guidelines on how to obtain a non-resident home in Canada.
1. Who can buy a house Canada?
When it comes to the purchase of real estate in Canada, the rules are not the same to acquiring citizenship. Anyone from any country is welcome to buy a home in Canada without any restrictions on the real estate you desire to obtain. It is important to note that from April 21, 2017, Canadian non-residents are required to 15% Non-resident tax speculation on the purchase price of the real estate. The 15% tax only applies in certain places in Canada.
2. Does buying a house in Canada improve my immigration chances?
The process of acquiring Citizenship in Canada is complicated. However, buying your first home in Canada as a non-resident does not qualify any non-resident to become an automatic citizen. Every non-citizen in Canada must first go through the immigration process to become a full citizen.
3. Who are non-residents according to the Canadian Law?
First, non-residents are people who do not live in Canada but reside in other countries. Secondly, a non-resident can also be a Canadian citizen who has not lived in Canada for the more than a half a year. However, Canadian citizens are not subject to the 15% non-resident tax speculation.
Nevertheless, they need to follow every regulation for non resident buying property in Canada.
Financing for Non-residents
1. Financing Options
The financing options for non-residents to acquire a house in Canada depend on Canadian lenders. However, the Canadian Lenders require a significant down payment that is large. The lenders need non-citizens to verify their credit and income worthiness.
The verification of credit and income worthiness allows them to prove that you can pay the mortgage when buying your first home in Canada. Also, remember the mortgage rates for purchasing a house in Canada for non-residents may be higher than standard Canadian rates but still attractive.
When you try buying a house in Canada for non residents, it is essential to understand the tax process and how it will affect the process of acquiring your home in Canada. Non resident buying property in Canada, have different tax rates in different parts of Canada.
For instance, if you desire to acquire a home in Toronto region, then you need to pay four types of taxes. The property tax, income tax, land transfer tax, and Non-resident speculation tax. Having an accountant to advise you effectively will help you understand the requirements before buying a house in Canada.
It may prove difficult for non-residents to acquire insurance. Nevertheless, for a non-resident to access a mortgage, you need proof of home insurance. Therefore, you should consider home insurance for you to purchase your dream home in Canada.
Home Purchase Process
1. Does a non-resident require coming to Canada to purchase the real estate?
With advancement in technology, acquiring property does not have to be a problematic process anymore. With the help of digital platforms like Skype or Facetime, you can opt for a realtor who is experienced in buying and selling in your specific area. The use of technology is also as good as seeing the home with your very own eyes.
For the legality processes like the signing of documents, you can access the services of a power of attorney. Non-residents can also entrust family members in Canada who are legal citizens with the transaction of the whole real estate process.
2. Choosing a home realtor
When selecting a realtor to work with, the first rule of the thumb is always to choose and work with a realtor who is experienced in buying and selling in your specific area. You also need a realtor who understands everything about foreign home ownership.
Look for realtors who have experience in the purchase and selling of property for non-Canadian residents. The Realtor you choose should also be able to help and guide you through the entire process without you being there physically.
For those who still ask can I buy a house in Canada? The above process proves that it is possible for a non-resident to purchase a property. However, it is essential to acquire the services of the right realtor before diving into the buying process.