Buying Real Estate for Non-Canadians

I’ve received a few emails from international buyers this month, asking about the financing aspect of buying real estate in Canada.

Basically, for a Canadian citizen and Canadian residents the requirement for down payment is 20%. If you’re planning to have less of that amount, Canadians and residents will be referred to the CMHC for mortgage insurance, it will allow you to purchase a home with as little as 5% down payment. For non-Canadians on working visa, the requirements are a little different, contact Danuta for more details.

Now, with non-Canadians, non-residents (foreigners not residing in Canada) or Canadian citizens non-residing in Canada (Canadian citizens who live abroad) the down payment requirements changes quite a bit. First off, financial institutions will  ask for a minimum down payment of 35%  to 50%, depending on each case. And you should be ready to supply the additional information from their local bank:

1. Proof of cash down (savings, sales of a property form their country- if any)
2. Letter of reference from their bank stating they have an account in good standing and since when.
3. The purpose for buying the property in Canada (investing, relocation, vacation home, etc)

These are some of the elements involved. For more information, you can contact Danuta, she’s the expert in the field :)

Some advice before buying:

It is important to know the areas where you wish to purchase, as the price and types of properties will change accordingly. If you can make a trip to get to know the area first, the better. Unless you’re buying it as an investment, I recommend you to visit the neighbourhoods before you attempt to buy a family home while being abroad.

• Have all your paperwork ready, and pre-approval before you begin the visits. That way you know exactly what your spending limit is.
• Visit as many areas as possible, Montreal has some enchanting neighbourhoods, that are not always mentioned in the touristic guides.
• Remember that the buying process can take time: from the minute you begin the visits, to the time you become the legal owner of your new home there will be (easily) 3 to 4 months in between, if not more. Unless you find a home in the first week of your search, and the property is vacant/or available for quick occupancy. But you’d be extremely luck to have this scenario, it doesn’t happen all the time.

If you are looking to buy a home in Canada and don’t know where to start, contact us. We’re happy to help.

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Posted by:  Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889

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