There are a number of questions that repeatedly arise for non-residential buyers in Canada. After helping a lot of non-residents throughout the Greater Toronto Area, we put together this 4-part series to help non-residents get the answers they need surrounding various non-resident property issues. In the first part we’ll address the most frequently asked question about non-resident residency.
Non-Resident Residency Questions
Can anyone buy real estate in Canada?
Yes, anyone can buy real estate in Canada, even non-residents. There are generally no restrictions on the number or type of properties you can purchase, but some banks will restrict how many properties you can buy, up to a maximum of 5 per person. In addition, in April 2017 the Ontario Ministry of Finance introduced a Non-Resident Speculation Tax of 15 percent to be paid by all non-residents and non-citizens. This also includes corporations and trusts. In December 2017, this was also updated to include the new land transfer tax (LTT) statements, which will essentially replace the three original statement options that were introduced in April.
Will owning a home in Canada help my chances to immigrate to Canada?
No, owning a home in Canada will not improve your chances of approval to immigrate to Canada, as this is not a qualifying factor in the immigration process. However, owning a home in Canada can help to improve your overall net worth, which is something that is carefully examined during the immigration selection process.
Would I be considered a non-resident if I am a Canadian citizen who is an expat, when it comes to property purchase?
It depends. If you are a Canadian citizen who has be living in a country outside of Canada for 6 months or longer, and you’re considering buying a property in Canada, you’d be considered a non-resident. Therefore, non-resident rules would apply to you.
How will my property purchase be treated if I am buying a property with a non-resident?
Even if you’re a Canadian resident, if you’re considering buying a property with a non-resident, you should know that you will be treated as a non-resident by banks in Canada. Thus, non-resident rules and requirements would apply, and you’d most likely require a higher down payment too. However, if you are a Canadian permanent resident, who is married to a non-resident, the Non-Resident Speculation Tax wouldn’t apply to you.
Do you have any programs for non-residents or new immigrants?
Yes, we have excellent programs for non-residents, new immigrants and for those Canadians who’re living and working overseas. It doesn’t matter if you don’t file tax in Canada! We have programs with Tier 1 lenders (Major Banks) for you. If you are self-employed or have a lower income we also have Equity Programs available.
Even though, the new mortgage rules has set consumers back a bit but we have special lenders who still can approve the consumers for higher limits.
We’d love to hear from you, and provide you with the answers you need. We’ll be your support on the path to Canadian home or property ownership. Call to speak to one of our mortgage brokers today.
Stay tuned for Part 2 on Non-Resident Financing.
When we say Yes! We stand behind our promise.