International Investors

Non-Resident Investors in Canada

There are no restrictions for a non-resident to purchase real estate 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, lenders generally require a minimum down payment of 35% to 50%. Qualifying for mortgage financing is no more rigorous than what borrowers in other countries are accustomed to. Applications are considered on a case-by-case basis, with interviews conducted via phone, fax and email to gather personal information including assets, liabilities, employment and income details.

Mortgage approval typically takes 24 to 48 hours after the application and documentation have been submitted to the lender.

Documentation generally required: Income verification, tax returns, credit bureau or banker’s report, down payment confirmation via bank statements, copy of two pieces of identification, and a real estate appraisal.

The borrower will need to open a Canadian bank account for debiting mortgage payments. The borrower will also require the services of a Canadian lawyer to prepare the mortgage documents and register them at the Land Titles office. It is best if the borrower is available in Canada to sign the documents at closing. If documents need to be couriered outside Canada, this must be arranged with the lawyer and lender well in advance.

What Happens When a Non-Resident Sells Real Estate in Canada?

Whenever a non-resident sells Canadian real estate, they are required to pay taxes on any capital gain. A Certificate of Compliance may be applied for in advance of the completion date, but not until there is a firm contract of purchase and sale with all conditions removed. The wait for the certificate is usually 6 to 8 weeks.

If the certificate is not obtained, the purchaser is required to hold back a percentage of the selling price — usually 25% to 50% — from the sale proceeds.

International Renters

If you are a first-time renter in Ottawa and do not have a credit history in Canada, landlords may require an extra security deposit, a guarantor, or rent paid up front. Consult one of our expert agents for additional advice. Procedures and requirements vary from one building to another. We’ll guide you through the process and ensure the best possible outcome.

The above information is not legal or intended to be legal advice. Consult a qualified Canadian tax and immigration professional for advice specific to your situation.