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Process of buying a home in Canada as a non-resident explained
There are a great number of expats who live in Canada as well as foreigners who enjoy visiting here. Vacation, working, and studying are all some of the main reasons Canada has such a great expat community. Furthermore, there are a ton of investors from outside of Canada. If you are looking to purchase a property here, we are going to help you out with the basic info. In this article, we will look at the process of purchasing a home in Canada as a non-resident. After we go through the process of buying a home in Canada as a non-resident explained, we will take a short look at some of the moving tips and tricks in case you plan on relocating here afterward. We are also going to mention the importance of hiring reliable movers such as Centennial Moving Canada to help you out.
As most of you are already aware, Canada is a country in North America. It’s considered the second largest country in the world, after Russia. Although it stretches over 9.985 million square kilometers, it’s not densely populated. As of 2020, the number of residents in Canada is around 38 million. The capital of Canada is Ottawa, the fourth largest city in this country. If you’re planning to get Canadian moving services and start your life here, it’s important to note the two official languages. Those would be English and French. However, these two languages aren’t the only ones you’ll hear in this country. In Canada, you can notice 14 indigenous language groups with around 70 different languages and dialects. They include many sign languages as well. Unfortunately, most of these are considered endangered. In 2016, less than 1% of Canadians used one of the indigenous languages as their mother tongue.
If you want to move to Canada, there are certain things you have to be familiar with.
Are foreigners allowed to buy property in Canada?
Let’s first take a look at the most important question. Canada is a huge country. The rules for purchasing a property here as a non-resident can sometimes vary from one place to another. That is why it is important to do proper research. Generally speaking, there are no restrictions on foreigners buying homes in Canada. However, depending on the area and the region, there may be certain fees that you have to pay extra when purchasing a property as a foreigner. In addition to this, if you plan on buying a home to rent it out later and not live in it, you may also have to pay for some additional charges. Either way, it is best to do as much research as possible about these additional fees by taking a look at the exact area in Canada where you plan on purchasing your home.
Proper research is needed especially when purchasing a property in a foreign country.
Who is considered a non-resident?
The next question is who exactly is considered a non-resident in Canada. Clarifying your official residency status with a professional is extremely important. This is because getting a mortgage and the taxes you’ll need to pay will vary depending on your residency status. You are a non-resident for income tax purposes if you live in another country and not Canada. The same applies if you live outside of Canada throughout the tax year. Plus, if you spend fewer than 183 days in Canada throughout the tax year. If you’re married to a Canadian citizen and you plan on buying a home together, you may be exempt from NRST, even if you are a non-resident. Do proper research on your legal residency status before you buy a property and start organizing a relocation. For example, if you already have all of the Kamloops residency research done, you might also want to research reliable moving companies Kamloops has to offer before moving there.
Taxes and fees
We have mentioned already in this article that there are some additional taxes and fees that you may have to pay. What are they exactly? Well, the exact fees you pay depend on several different factors. The location and the value of the property are the top two. However, there are some common factors to take into consideration. These are the following:
Legal and notary costs,
NRST(depending on the region),
Land transfer taxes,
Capital gains taxes(If you plan on using the property as an investment).
Although this might seem a bit complicated, it really is not. Buying a home here as a non-resident is generally quite easy. However, take all of these factors mentioned above into consideration. Additionally, take a good look at the movers you hire before relocating. Find trusted moving companies Red Deer to help you relocate stress-free.
Take into consideration important factors such as taxes and additional fees.
The documentation needed for the mortgage
Next in line is the documentation. To get a mortgage arranged, check the exact documents you need with your bank. Generally speaking, a non-resident in Canada will need a deposit, which is usually 35% of the property’s value. Next, a reference letter from the bank, proof of income, and a Canadian credit check. So, once you get these covered, you should be good to go for the mortgage.
Buying a home in Canada as a non-resident explained: home loan
First of all, what is a home loan exactly? Well, a home loan is a loan advanced to a person to assist in buying a house or flat. This may be crucial when you buy your home. You need a Canadian bank account for a home loan. So, in the majority of cases, you will need to visit Canada first and open your account. Considering how many details can go into a home loan, make sure you do a ton of research about it as well.
If you want to take a home loan, you will need a Canadian bank account.
Searching for the right residence
One of the questions non-residents of Canada often ask themselves is whether they can search for their new home if they’re not currently in the country. The answer is yes, of course. There are many ways one can accomplish such a thing. To begin with, search for the property on credible real estate websites or major newspapers. If you find the place you like, you’ll have to make sure everything looks great in person too. This problem can be solved if you know someone in Canada who can be trusted. That person can check out the residence for you. If not, interactive online tours exist. Via Skype or some other app, you can see the place just as you would if you were really there. This will make your search a lot easier. Another thing you must not forget is to find a place with a garage if you own a car. In addition, you’ll need to hire one of the car shipping companies Canada has.
Even if you cannot see the residence you want to buy in person, there are still ways you can confirm you’ve made the right choice.
The cost of living
Even if you have all the information about buying a residence in Canada explained, there’s still so much more to know about this place. Buying a home is not easy in any sense. Additionally, it can be a great financial burden. Unfortunately, that’s not the only expanse you’ll have further on. You’ll have to pay for the province to province movers and all the necessities you’ll need later on. The prices in Canada vary from location to location. The average cost of food in this country is around $300. When it comes to clothing, it ranges between $45 and $130, depending on the quality and status of the brand. All in all, if you want to move here, we advise you to calculate your budget and the cost of key necessities. Those would be transportation, food, groceries, childcare if you have one, and similar things.
The moving process
Let us also briefly mention the moving process. Considering the difficulties that come with long-distance moves, it is best to be prepared. The moving process is often complicated. However, it does not need to be stressful. Make sure you have a good plan and a good organization when preparing for your move to Canada. Again, we stress the importance of doing a lot of research before hiring your movers. For long distance moving to Canada, make sure you hire reliable and professional movers who will assist you with quality moving services.
After you get buying a home in Canada as a non-resident explained, make sure you hire reliable movers to help you relocate.
Interesting facts about Canada
Now that you’re aware of the process of purchasing a home in Canada as a non-resident, let’s go over some fascinating facts about this country that will make you want to move here immediately.
Canada has the longest coastline and the longest international border in the world.
The name Canada comes from the word kanata which in the language of the St. Lawrence Iroquoians means “settlement” or “village”.
The only walled city in North America is located in Canada. That is Quebec.
The maple leaf, which everyone knows is a symbol of Canada, has been that since the 18th century.
The national sport of this country is lacrosse. If this is something you enjoy doing, and you have understood everything from this article on buying a home in Canada as a non-resident explained, hire cross country movers Canada has, and enjoy the beauties this place has to offer.
Buying a home in Canada as a non-resident summarized
To conclude, for foreigners or non-residents, buying a property in Canada is a dream come true. A second home, an investment, or somewhere to live full-time is all available to you. Of course, there are some additional fees and taxes that you will need to research. Furthermore, knowing the crucial details about the area you want to move to will save you so much trouble later on. That’s why you should research the necessary documentation and the cost of living for the area you want to live in. Finally, before moving, make sure you hire reliable moving companies to assist you. Now that you have buying a home in Canada as a non-resident explained, you can prepare to purchase your new home and start getting ready for the relocation!