Canada has a thriving ex-pat community, which is unsurprising given the country's many attractions. Canada is a fantastic place to live, whether you're looking to explore the great outdoors, relocate to be closer to family, or take on a fantastic new business opportunity.
Non-residents have the same ownership rights as residents, and Canada has a relatively open-door policy for foreigners looking to buy property. There are also some states that have specific rules that must be adhered to. Here are a few things to keep in mind:
You are considered a non-resident if you plan to stay in Canada for six months or less; however, if you plan to stay for more than six months per year, you must apply to become an immigrant.
If you aren't currently residing in Canada, it may be beneficial to speak with a lawyer for assistance with the paperwork required by Canadian banks and realtors.
In April 2017, the Ontario government enacted the Non-Resident Speculation Tax (NRST), a 15% tax on people who aren't citizens or permanent residents of Canada who buy a residential property in Toronto's Greater Golden Horseshoe region.
While purchasing a home can be taxing, it can also be extremely rewarding! Don't know where to start? Contact Guglu Homes, one of the leading Real Estate brokerages, providing buying and selling of real estate properties in the GTA and Southern Ontario region. In this article, We've put together a list of the six most important real estate buying tips you should be aware of before purchasing a home in Canada.
#1 Have More Than A Down Payment
Do you have enough money to put down on the house of your dreams? Congratulations. You're one step closer to owning your own home. However, if you're still saving for a down payment in the Canadian real estate market, you should be aware of some of the details. In relation to the purchase price, federal regulation now mandates specific percentages. To put it another way, the federal government wants you to have a stake in the outcome. As a result, here's everything you need to know about how much of a down payment you'll need (at minimum):
● $500,000 or less: Five per cent
● $$500,000 to $999,999: Five per cent for first $500,000 and 10 per cent of any amount exceeding $500,000
● $1,000,000 or more: 20 per cent
#2 Get Pre-Approved for a Mortgage
Buying a house without a mortgage pre-approval is like shooting at a moving target in the dark. When you go to the market, you have no idea how much money you have. Furthermore, no one knows how long the current record-low interest rate will last, even though the Bank of Canada (BoC) has stated that it will not raise rates anytime soon.
When it comes to mortgage pre-approvals, our advice is to act quickly. Getting a mortgage pre-approval has the advantage of locking in the current interest rate for up to 120 days. If interest rates rise, your lender should stick to the current rate. If they drop, your guaranteed rate should drop as well.
#3 Shop Around the Best Rates
There has never been a time when interest rates have been so low. In response to the corona virus pandemic, the Bank of Canada lowered its benchmark rate to 0.25 percent, and the five-year mortgage rate was lowered to below 5%. What is the significance of this? It will determine how much you will pay in principal and interest on your mortgage each month. However, you can try getting benefits from incentives or other programs by the government for home buyers.
#4 Check Out First-Time Homebuyer Incentives
The First Time Home Buyer Incentive (FTHBI) is a loan offered by the Canadian government to encourage people to realise their dream of owning a home. Borrowing options for first-time homebuyers include:
• 5% of the purchase price of a resale home
• Five to ten percent of the cost of a newly built home.
• The loan has no interest and can be repaid at any time over the next 25 years or when the house is sold.
Do you meet the requirements? To qualify, you must be a first-time homebuyer with a household income of less than $120,000, and your mortgage must be four times your maximum household income of $120,000.
Let's face it: in today's ultra-competitive and expensive real estate market, many Canadians, particularly those living in major cities, are having difficulty financing their home purchase. This programme may be able to alleviate some of that financial strain by making housing more accessible to those who do not have any current equity.
There's also the federal First-Time Home Buyer's Plan, which allows first-time buyers to borrow up to $35,000 from their RRSP, interest-free, to help with their down payment or other purchase-related expenses. Some provinces also provide a Land Transfer Tax rebate.
#5 Work with a Real Estate Agent
Homebuyers can go it alone when looking for a home, whether it's a detached, semi-detached, townhouse, condominium, or something else. The process can be complicated without the benefit of experience and expertise on your side, and you risk missing some potential red flags. Working with a knowledgeable real estate agent can significantly reduce the stress of buying a home in Canada's competitive markets, and may even save you money !
● So, what are the benefits of working with a real estate agent who is licensed ?
● You have easier access to both local and out-of-area homes.
● Realtors are familiar with the neighbourhood and market trends.
● A highly experienced real estate agent has superior negotiating abilities.
● Real estate agents are aware of the massive amount of paperwork that comes with purchasing a home.
● Realtors can provide you with the guidance and support you need to make the most important purchase of your life.
#6 Do a Home Inspection
Unfortunately, many homebuyers are skipping home inspections because they are afraid of losing out on a property due to bidding wars and rising demand. This could result in a variety of financial consequences. You may be responsible for costly repairs and renovations after you receive the deed to the house, ranging from moisture and mould in the basement to foundation issues.
We always recommend getting a home inspection before purchasing any property, regardless of the situation. This may save you money in the long run and give you peace of mind that you made the best decision possible.
Having a home is a dream come true for the majority of people. It not only provides a place to call home and raise a family, but it also serves as an investment that could help pay for your children's college tuition or your retirement. The real estate market in Canada is booming, but that doesn't mean it's too late to get in! Working with an experienced real estate professional will ensure you have all the real estate buying tips you need to buy a home in Canada.
Have more questions about the home-buying process, or are you ready to take the next step? To understand more about buying a home, contact Guglu Homes today.
This website may only be used by consumers that have a bona fide interest in the purchase, sale or lease of the type of realestate being offered via this website. REALTOR®, REALTORS® and the REALTOR® logo are certification marks owned by REALTOR® Canada Inc., a corporation jointly owned by the National Association of REALTORS® and CREA. MLS®, Multiple Listing Service®, and the associated logos are all registered certification marks owned by CREA and are used to identify real estate services provided by brokers and salespersons who are members of CREA.