We help a lot of non-residents buy property in the Greater Toronto Area, and there are some questions that come up repeatedly. Below, you’ll find answers to the most frequently asked questions.
Residency Questions for Non-Residents
- Can non residents buy property in canada?
Canada welcomes home buyers from all countries, and there are no restrictions on the amount or kind of real estate you can buy. Some banks will restrict the number of properties they will finance to 5 properties per person.
- I’m a Canadian citizen living in a different country. Would I be considered a non-resident for the purposes of buying real estate if I’m an expat?
Citizens of Canada who don’t reside in Canada for more than half the year are considered non-residents (and thus subject to all the same rules).
I’m a non-resident and want to purchase a property in Canada with a resident. How will that be treated?
If you buy a property with a non-resident, you will be treated by a Canadian bank as a non-resident and thus subject to the same requirements, including a higher down payment.
Financing Questions for Non-Residents
- Can a non resident get a mortgage in canada?
Yes, Non Residents are eligible for Mortgages in Canada. But it is subject to qualification parameters mentioned below
How do I qualify for a mortgage as a non-resident?
To qualify for a mortgage for a property in Canada, non-residents will generally require:
- A 35% down payment (not from gifted funds)
- A reference letter from their bank
- An employment letter verifying income in Canadian or US dollars
- Three months bank statements
- Canadian credit check. If you have a bad Credit, Click here to know more about improving Credit Score.
What kind of interest rate will I get on a mortgage as a non-resident?
Non-residents are eligible for the same interest rates as Canadians, provided they meet the mortgage eligibility criteria. If you live in a country that does not have a tax treaty with Canada, you will only be eligible for a fixed-rate interest rate. [See a list of countries that have in-force tax treaties with Canada]
If you don’t meet the eligibility requirements, you may still be able to get financing from other lenders who charge higher interest rates.
Can you recommend a mortgage broker who is used to helping non-residents buy property in Canada?
We have put together a full team of highly experienced mortgage brokers to help our non-resident clients. If you work with the AKAL Mortgages team to buy your home, you’ll have access to mortgage lenders, lawyers, home inspectors and insurance agents who understand the intricacies of non-resident home purchases or investments.
What kinds of closing costs should I expect to pay?
You will pay the same closing costs as Canadian residents – land transfer taxes and legal fees. [See Related: Closing Costs]
Do you have other questions? We’d be happy to help answer them and lead you on the path to homeownership in Canada. Contact us today.
When we say Yes! We stand behind our promise.