Crunching the numbers.

While Canadian lenders finance the home purchases of non-residents, they usually require significantly larger down payments. The following is an overview of financial considerations:

• Financing. For most non-resident clients, a 35% cash down payment (or greater) is required. Information on your income and credit-worthiness will be required by your lenders, along with proof that you can pay the mortgage. Also, mortgage interest rates may be higher than what Canadian residents would pay.
  
  

• Taxes. It is important to contact your accountant to fully understand how the sale or purchase of a property in Canada will affect you from a tax perspective. The following is a guideline only:
  
  
  • Foreign buyers pay the same land transfer taxes as Canadian residents when buying a property in Toronto.
    
    
  • While non-residents experience no additional taxes when buying a property, there are tax implications when selling a property. Full details can be found on the Canada Revenue Agency (CRA) website, though you should contact your accountant for more details. We have access to global tax advisors and accountants who can assist you.
    
    
• Insurance. For non-residents, it can sometimes be difficult to obtain insurance for an investment property. This is an important factor to consider, given that proof of home insurance is required to obtain a mortgage. Insurance quotes and information should be obtained before making an offer on a Toronto investment property.

The pride of home ownership in Toronto.

Canada welcomes home buyers from all countries and there are generally no restrictions on the amount or kind of real estate you can buy. However, foreign buyers should take note of the following:

• Foreign ownership. The rules around foreigners buying real estate in Canada are not actually related to citizenship. Even citizens of Canada who do not reside here for more than half the year are considered non-residents (and thus subject to all the same rules).
  
  

• Making an offer. With today’s modern technology, it is easy to make an offer on a house or condo digitally. We use Docusign to assist in the execution of the offer. Many lenders require a foreign buyer to sign the mortgage paperwork in person.