NON-RESIDENT INVESTORS IN CANADA
- There are no restrictions
for a non-resident to purchase real estate in Canada, nor are there tax
implications or extra fees payable at time of purchase.
- A non-resident may purchase as many properties as they wish in Canada.
- Rental properties: Non-residents must file a canadian tax return each year and declare rental income.
Do non-residents qualify for a Canadian mortgage?
- For non-resident borrowers we will generally require a minimum of 35% - 50% payment.
- Qulifying for the mortgage financing is probably no more rigorous
than what borrowers in other countries are accustomed to. The borrowers
will be interviewed via phone, fax and/or email to gather personal
information including, assets/liabilities, employment and/or income
information. Each borrower's application will be considered on a case
by case basis.
- The mortgage approval may take approximately 24 to 48 hours after
application and documentation have been submitted to the lender.
- Documentation generally required" Income verification, tax returns,
credit bureau or banker's report (letter from their own bank stating
that all accounts are in good standing to date), down payment
confirmation via bank statements, copy of 2 pieces of identification
and real estate appraisal.
- The borrower will need to open a Canadian bank account for debiting of mortgage payments.
- The borrower will require the services of a Canadian lawyer tor
notary public to prepare the mortgage documents and registration at the
Land Titles office. It is best if the borrower is available in Canada
to sign mortgage documents at the time of completion. In the event the
documents need to be couriered outside of Canada for signing, this will
need to be arranged with the lawyer and lender well in advance of
completion date.
What happens when a non-resident sells real estate in Canada?
-
Whenever a non-resident sells Canadian real estate, the non-resident is
required to pay the appropriateamount of taxes on any gain.
- This certificate may be applied for in advance of the completion date
by the vendor, but not until there has been a contract of purchase and
sale with all subjects removed. The wait for the certificate is usually
6-8 weeks. If the certifcate is not obtained, the purchaser is required
to hold back from the sale proceeds a percentage of the selling price
(usually 25% -50%)
The above information is not legal or indended to be legal advice.