There are no restrictions for a non-resident to purchase in Canada, nor are there tax implications or extra fees payable at time of purchase.

A non-resident may purchase as many properties as they wish in Canada.

Rental properties: Non-residents must file a Canadian tax return each year and declare rental income.

Do non-residents qualify for a Canadian mortgage?

For non-resident borrowers we will generally require 35%- 50% down payment.

Qualifying for the mortgage financing is probably no more rigorous that what borrowers in other countries are accustomed to. The borrower will be interviewed via phone, fax and or email to gather personal information including, assets/ liabilities, employment, and/or income information. Each borrower’s application will be considered on a case-by-case basis.

The mortgage approval may take approximately 48-72 hours after the application and documents have been submitted to the lender.

Documentation generally required Income verification, tax returns, credit bureau or bankers report (letter from their own bank stating all accounts are in good standing to date), down payment confirmation via bank statements, 2 pieces of primary identification and a real estate appraisal on property to be purchased.

The borrower will need to open a Canadian bank account for debiting of mortgage payments.

The borrower will require the services of a Canadian lawyer for notary to prepare the mortgage documents and registration at Land Titles Office. It is best if the borrower is available in Canada to sign mortgage documents at the time of completion. In the event the documents need to be couriered outside of Canada for signing, this will need to be arranged with the lawyer well in advance of completion date.

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

Whenever a non-resident sells Canadian real estate, the non-resident is required to pay the appropriate amount of taxes on any capital gain.

This certificate may be applied in advance of the completion date by the vendor, but not until there has been a contract of purchase and sale with all conditions removed. The wait for the certificate is usually 6-8 weeks. If the certificate is not obtained, the purchaser is required to hold back from the sale proceeds a percentage of the selling price (usually 25%-50%)