Canadian real estate business or market is one of the most attractive one in the world. Are you living outside Canada or are you interested in getting into their real estate? If yes, the following are some of the essential things that you need to know when purchasing property in Canada. This information is beneficial, especially for the non-resident buyers.
You can easily get financing in Canada even if you are a non -resident. However, lenders will require you to make a significantly high down payment as compared to the Canadians. Any individual who is looking for financing is to required to verify his or her creditworthiness an income. This is done to ensure that borrowers are in a good position of paying their mortgages. Non-Canadian residents are given mortgages at higher rates as compared to the locals. However, you do not have to worry since the rates offered are still are still attractive.
Most of the rules concerning real estate in this country are not directly related to citizenship. In fact, any person who does not reside in Canada for more than six months is considered as non-resident. This is a country that welcomes buyers from different countries. There are no restrictions barring anyone from buying any estate. However, it is worth to that from April 7 all the non-Canadian citizens are expected to pay an additional tax of 15% for the property purchased. This additional tax is referred to as Non-resident Speculation Tax. Individuals owning ties in this country are not given any privileges. Any person who is interested in living in Canada has to follow the Immigration laws set by the immigration department.
Contacting an accountant will help you in understanding taxation will affect you when purchasing a property. In addition to the Non-resident Speculation Tax mentioned earlier, both Canadian and foreign buyers are subjected to the same and taxes. However, first-time buyers are expected to repay land transfer rebates. Additionally, there are tax implications that affect the non-residents whenever they are selling their property. Any individual who does not comply with the rules set by Canada Revenue Agency is penalized.
The process of obtaining an insurance cover for investment properties is sometimes very expensive and difficult for the non-residents. This insurance is vital because it is required by any person who is applying for a mortgage. Any person who is applying for insurance is advised to get all the necessary information and insurance quotes before making such an offer.…Read More