When you are a non-resident in Canada, you will notice that it is difficult to buy property. If you have a house back in your country of origin, the chances are that you’re going to want to sell it and invest in Canada instead. It may be a good idea for this reason to keep both properties, but you still need to know how non-residents can buy a property in Canada.
Who is a Non-Resident?
A person is considered a non-resident if they do not meet any of the residency tests that the Canada Revenue Agency sets out. Therefore, you will be regarded as a non-resident under the following circumstances:
1) You lived outside of Canada throughout the tax year (365 days)
2) You stayed in Canada for less than 183 days in the tax year
Buying a house in Canada means that there are some hoops you’ll need to jump through as a non-resident. The key here is understanding what is required of you and doing your due diligence before offering a property.
The following are three tips that will help you buy a house in Canada as a non-resident:
1) Get A Mortgage Pre Approval
The first step you should take is to get pre-approved for a mortgage or home equity loan, and it is advisable to work with private mortgage lenders in BC. It will require that you provide some information about your employment and finances. Still, it can help with your negotiations when determining what price you are willing to pay on the property.
If you are pre-approved for a certain amount, this helps establish what market you are in and gives you some leverage when negotiating the purchase price.
2) Understand The Rules Governing Non-Residents
It is essential to understand the rules that govern non-residents purchasing property in Canada; private lenders in BC will help you know that. For example, a non-resident can only own a property for a maximum of two years without becoming a resident.
Other stipulations may apply, so it is vital to be aware of them and ensure that you meet all the requirements.
3) Have A Local Agent Represent You
When buying a property as a non-resident, it is vital to have a local agent represent you, such as B lenders. They are familiar with all the rules and regulations that pertain to the purchase, and they can help ensure that the process goes as smoothly as possible.
Having an agent represent you also helps with communication, as they can act as a middleman between you and the seller. It can be beneficial if you cannot be in Canada during the purchase process.
There are numerous benefits of working with private lenders when purchasing a property. They will guide you through the process and ensure that everything is taken care of on your behalf. Understanding what needs to be done and having them help you ensure that absolutely no mistakes are made along the way is essential.
As a non-resident, it can be hard enough to try to buy property in Canada, but it can be done with a bit of preparation and understanding of the process. By following the tips outlined above, you’ll be on your way to owning your dream home in no time.