Canada is known to have some of the friendliest people in the world. As acts of racism are increasing everywhere else, a lot of people have begun to show interest in moving to Canada instead. In most of the places around the world, you need to have a citizenship if you want to purchase a piece of property. But, in Canada, buying a property is not related to the citizenship. Even citizens who do not stay in Canada for more than half of the year can buy properties.
However, after April 21, 2017, if you want to buy a property in Canada and are a non-resident then you would be subject to a Non-Resident Speculation Tax of 15% of the purchase price. This is applicable for properties purchased in Toronto, Brant, Dufferin, Durham, Haldimand, Halton, Hamilton, Kawartha Lakes, Niagara, Northumberland, Peel, Peterborough, Simcoe, Toronto, Waterloo, Wellington and York. Before you start searching for condos for sale in Maple, Ontario, you should know that it does not mean that you would also get immigration privileges.
It is more expensive and often harder for non-residents to get insurance for an investment property. Proof of home insurance is an important document if you want to apply for a mortgage. Make sure to get the proper information and quotes before you make an offer. This way, you will be fully informed.
Making an offer
Thanks to the advanced technology, you could sign the legal documents for a property from the comfort of your home. You will not even need to travel. The signature can be done digitally with the help of apps like Skype and Facetime. However, you should know that many lenders require a foreign buyer to sign the mortgage in person. But, even this can be sorted out with an executed Power of Attorney.
There are a lot of Canadian lenders that finance the home purchases of non-residents. But, they do require major down payments. Majority of the non-resident clients are expected to have 35% cash down payment. However, the lenders will require you to verify the credit worthiness and the income in order to prove that you would be able to pay the mortgage. Keep in mind that the mortgage interest rates will be higher than what Canadian residents usually pay. You will also be able to find good options for investment in new condo developments, Vaughan.
Author: The author is an avid writer and this article is about buying properties in Canada.