The Canadian real estate market is booming, and the trend is headed to witness more growth in the years to come. Many people from around the world are now buying properties in Canada. If you are living outside Canada and want to buy property in Canada, here is a guide for you.
Even though Canadian financers do facilitate non-resident to buy properties in Canada, they usually require the applicants to agree on a considerably down payment. For example, most lenders need non-residents to have about 35 percent down payment. Furthermore, you must demonstrate your financial strength and credit history and make it evident that you can pay off the mortgage. Also, keep in mind that some lenders increase the mortgage interest rate for non-residents.
All non-residents thinking of buying property in Canada must discuss the tax factor with their accountants and understand how buying or selling a property in Canada can impact their tax outlook. For instance, if you want to buy a property in Toronto, you would be required to pay 15 percent tax when the transaction goes through.
In some cases, non-residents may find it difficult to secure coverage for the property they buy in Canada. In other cases, getting insurance may be expensive. To get a mortgage for purchasing property in Canada, you must produce a proof of your home insurance. For this reason, you must get insurance quotes before buying a property in Canada.
Choosing a Realtor
Even though all the normal advice for selecting a good realtor applies to non-residents as much as they do to Canadians, non-residents must choose a realtor who has experience in helping non-residents with buying properties in Canada. A realtor with relevant expertise can help you meet trusted property managers, attorneys, and lenders that can be useful in your situation.
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