Non-resident Buyers

The Prohibition on the Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from buying residential property in Canada for 2 years starting on January 1, 2023.

PLEASE DISREGARD BELOW NOTES WITH RESPECT TO NON-RESIDENTS UNTIL DECEMBER 31, 2024

Buying a house as a non resident by non-resident buyers is a well-trodden path, and you will be joining the myriad of international owners who already enjoy their investment.  

We are very experienced in assisting international buyers and will be delighted to assist you in your search for a home. Non-resident buyers are permitted to stay in Canada up to 180 days each year.  Canada enjoys one of the World’s most open and transparent real estate markets, and non-resident buyers are generally not restricted from buying properties in Canada.

Non Resident Speculation Tax

Effective October 25, 2022, the Non-Resident Speculation Tax (NRST) rate was increased to 25 per cent. The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees.

The NRST applies in addition to the general Land Transfer Tax (LTT) in Ontario.

Mortgage financing

As a non-resident buyers, mortgage financing is generally available at 65% so you’ll need 35% as a down payment. Some lenders may require 40% or more depending on your circumstances and the property. Qualifying for mortgage financing in Canada 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 can be arranged with the lawyer and lender well in advance of the completion date.  We can put you in touch with mortgage brokers (their services are generally paid for by the mortgage provider).

Purchase costs

Purchasing real estate can be a significant investment, and it’s crucial to be aware of the associated costs to ensure you’re prepared to make a financially sound decision. Some of the common expenses you should keep in mind include the down payment, closing costs, appraisal fees, title insurance, property taxes, and home insurance.

These costs can vary depending on several factors, such as the location of the property, the size and value of the property, and the type of financing you choose. As a resident or non-resident, you should also consider any additional taxes or fees that may apply to your specific situation. By understanding the costs associated with purchasing real estate, you can make an informed decision and avoid any surprises down the road. 

Realtor commissions

In the Whistler real estate market realtor commissions are paid by the Seller, so as a Buyer you do not pay any commissions. The Seller typically pays one commission which is then split between the Buyer’s and Seller’s realtors.

Legal fees

Given the potential complexity of offshore real estate transactions we recommend that as a non-resident purchaser you retain a lawyer to facilitate your transaction. We are able to recommend lawyers familiar with acting for international buyers on Whistler real estate transactions.