International Investors

Non-Resident Investors in Canada

Canada places no restrictions on non-resident purchases of real estate. In addition, buyers face no tax implications or extra fees at the time of purchase. In fact, a non-resident may purchase as many properties as they wish in Canada.

For 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%. However, the qualification process is no more rigorous than the standards borrowers in other countries already know. Specifically, lenders consider each application on a case-by-case basis. They conduct interviews by phone, fax and email to gather personal information, including assets, liabilities, employment and income details.

Mortgage approval typically takes 24 to 48 hours after applicants submit the application and documentation to the lender.

Moreover, lenders generally require the following documentation: income verification, tax returns, and a credit bureau or banker’s report. They also ask for down payment confirmation via bank statements and a copy of two pieces of identification. Finally, they require a real estate appraisal.

In addition, the borrower must open a Canadian bank account for debiting mortgage payments. The borrower also needs the services of a Canadian lawyer to prepare the mortgage documents. The lawyer then registers them at the Land Titles office. Ideally, the borrower is available in Canada to sign the documents at closing. If documents must travel outside Canada by courier, the borrower should arrange this 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 must pay taxes on any capital gain. The seller can apply for a Certificate of Compliance in advance of the completion date. However, this is possible only once a firm contract of purchase and sale exists with all conditions removed. Afterwards, the wait for the certificate is usually 6 to 8 weeks.

Without the certificate, however, the purchaser must 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 without a credit history in Canada, landlords may impose additional requirements. For example, they may ask for an extra security deposit, a guarantor, or rent paid up front. For additional advice, consult one of our expert agents. Procedures and requirements vary from one building to another. Finally, we’ll guide you through the process and ensure the best possible outcome.

The above information does not constitute legal advice. Consult a qualified Canadian tax and immigration professional for advice specific to your situation.