(Dec 2, 2023)
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In the ever-evolving landscape of real estate in Canada, non-Canadian residents find themselves in a complex web of regulations that significantly impact their ability to purchase a property. At the forefront of these regulations are two pivotal legislative measures: the Foreign Buyer Tax in British Columbia and Ontario, and the nationwide Prohibition on the Purchase of Residential Property by Non-Canadians Act. While the Prohibition is poised to conclude on December 31, 2024, the foreign buyer tax (at the moment) has no set expiry date. These two key policies act as barriers, preventing many well-intentioned non-Canadians from realizing their dream of establishing roots in Canada through property ownership.
Here is a summary of the two key regulations:
- The Prohibition on the Purchase of Residential Property by Non-Canadians Act: as of March 27, 2023, work permit holders are allowed to purchase residential property in Canada provided that they hold a work permit with at least 183 days of validity, or more, remaining on the permit, and have not purchased more than one residential property. 183 days must be remaining on the permit on the completion date of the property.
- The Foreign Buyer Tax (BC) or Non-Resident Speculation Tax (Ontario): Unless you are a Canadian citizen, Permanent Resident or Provincial Nominee you are subject to an additional land transfer tax of 25% in Ontario, and 20% in British Columbia. Click on the following links to see if you are eligible for exemptions: Foreign Buyer Tax Exemptions in BC, and Non-Resident Speculation Tax Exemptions in Ontario. The province of Alberta (and all other remaining provinces and territories) has not mandated any foreign buyer tax.
Can non-Canadians qualify for mortgages in Canada?
Absolutely! Although non-Canadians are subject to the hefty foreign buyer tax in BC and Ontario, work permit holders and permanent residents can otherwise purchase in the rest of Canada and qualify for a mortgage with as little as 5% down. As qualification programs vary with lenders and insurers, it is best to proceed with a formal pre-qualification to determine your precise qualification scope. Click Here to begin your free preQualification with Marko Gelo.
In Summary
In the dynamic realm of Canadian real estate, non-Canadian residents continue to grapple with the multitude of regulations that impact property acquisition. The forefront of these rules includes the Foreign Buyer Tax in British Columbia and Ontario, and the nationwide Prohibition on the Purchase of Residential Property by Non-Canadians Act, with the latter set to conclude on December 31, 2024. Summarizing the key regulations, the Prohibition Act outlines conditions for work permit holders, while the Foreign Buyer Tax presents additional levies in Ontario and BC. Notably, non-Canadians can still qualify for mortgages in Canada, subject to region-specific tax implications.
Make sense? Call or text Marko Gelo right now at 604-800-9593, or Click Here to schedule a free, no-obligation phone call with Marko. You can also call Marko on WhatsApp.
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