NON-RESIDENT BUYERS
There are no restrictions for a non-resident to purchase real estate in Canada, nor are there any 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.
Non-resident borrowers will generally have to make a minimum downpayment of approximateley 35%-50% of the purchase price. Each borrower's application is considered on a case by case basis.
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.
A non-resident borrower will need to open a Canadian bank account for debiting of mortgage payments. The borrower will require the services of a Canadian lawyer or notary public to prepare the mortage documents and registration at Land Titles Office. It is best if the borrower is available in Canada to sign mortgage documents at time of completion. In the event the documents need to be couriered outside of Canada for signature, this will need to be arranged with the lawyer and lender well in advance of completion date.
The above information is for generally information purposes only and not intented in any way to be legal advice. Please contact your lawyer to obtain specific legal advice and complete details. E & O.E.