Buying Property in Canada

Non-residents are permitted to stay in Canada 180 days each year.  Non-residents are generally not resticted from buying properties in BC. 

Mortgage financing

As a non-resident, financing is generally available at 65% so you'll need 35% as a down payment. Qualifying for the mortgage financing is similar to other countries and can usually be accomplished via fax and e-mail. The mortgage approval may take a few days and the mortgage broker will advise you what information they need.  The borrower will require the services of a Canadian lawyer or notary public to prepare the mortgage documents and registration at the Land Titles office. Documents can be couriered outside Canada for signing - this will need to be arranged with the lawyer and lender well in advance of the completion date.

Purchase Costs

Property Transfer Tax  (different from property tax)

Property Transfer Tax is a provincial tax on the transfer of real estate. It is 1% of the first $200,000, and 2% of the remainder of the purchase price. The First Time Home Buyers' Program provides a tax exemption from Property Transfer Tax for individuals buying their first home. Buyers who meet the following conditions will be eligible for the exemption.

        Buyer:

• must be a Canadian citizen or permanent resident who has never owned a home anywhere in the world, and has
  • lived in BC for one full year prior to the purchase, or
  • filed two income tax returns as a BC resident within the last six years.
  If the buyer is not a Canadian citizen or permanent resident at the time of completion, but becomes one within one year of completion, the buyer can apply for a tax refund.
• must occupy the property as their principal residence for the first year                  
•  For vacant land, a house must be constructed within one year of completion and the buyer must occupy the house for the balance of the year.

        Property:

• must not exceed $425,000. A proportional exemption is now available for properties that have a value greater than $425,000
• in the case of vacant land, the value of the land plus the total construction costs must not exceed the amounts stated above.
• must be classified as residential. 

GST - (Goods and Services Tax)  - is 5% on new construction and substantially renovated properties. GST is sometimes included in the list price. Buyers of new properties costing $350,000 or less can apply for a partial GST rebate as long as the property is the purchaser's primary residence. For new properties costing $350,000 - $450,000, the rebate is decreased proportionally to zero for properties costing $450,000 or more. For more info on GST, please see: the Revenue Canada website 

Commissions

In BC, you are not generally charged commissions on your purchase. The seller will pay a commission which is shared between the buyer's agent and listing agent.

Other Costs

Appraisal

Your lender may require a property appraisal at your expense. Costs vary $150-$300.

Site Survey

Your lender may require an up-to-date survey. If the Seller does not have one, you may have to absorb the costs to have one done.

Legal Fees

Lawyer or notary fees will vary depending on the complexity of the transaction and are often $600-$1000. Your legal rep will review your contracts, search the title, draft mortgage documents and facilitate the closing. 

Home Inspection

Typically $150-$400.

Insurance

Fees vary.

Strata Fees (similar to Home-Owner's Association fees)

These are monthly fees that typically cover the costs of building insurance, building  maintenance, garbage removal, water, gas, recreation facilities, and concierge services. Fees vary depending on the level of services provided by the strata and are usually available on the listing detal sheet.