Non-Resident Buyers

Non-Resident Investors in Canada

• A Canadian Tax Return should be filed each year to declare rental income if the property is to be rented out by non-residents
• For a non-resident wishing to purchase real estate in Canada, there are no restrictions and at the time of purchase there will be no tax implications on extra fees.
• There is no limit to the number of properties that a non-resident may purchase.

Do non-residents qualify for a Canadian mortgage?

• Getting approved for a mortgage is simple provided the applicant is qualified for the mortgage.
  An interview will take place where the applicants qualifications will be checked and considered.
• After application and documentation have been submitted to the lender. Approval take about
  24-48 hours.
• In order to have mortgage documents and property registered at the Lands Title office, the applicant will also require the services of a Canadian lawyer or notary public. It is recommended that the applicant be available in Canada upon completion date in order to sign the documents.
  

What happens when a non-resident sells real estate in Canada?

• Once there has been a contract of purchase and sale and all the subjects have been removed, a certificate may be applied for before the completion date by the vendor which takes about 6-8 weeks to approve. Without this certificate the purchaser is obligated to withhold from all sale proceeds. A small portion of the selling price, between 25% - 50%.

 

• Payment of any taxes associated with any capital gains, if a non-resident is selling real estate in Canada is required.