International Investors (Non-Resident) In Canada

  • There are no restrictions for a International Investors to purchase real estate in Canada, nor are there tax implications or extra fees payable at time of purchase.
  • An International Investor may purchase as many properties as they wish in Canada.
  • Rental properties: Non-residents must file a canadian tax return each year and declare rental income. Non Residents are required to submit a % of rental income thru out the year. Your accountant would be the best person to advise you.
Do International Investors qualify for a Canadian mortgage?

  • For International Investors or non-resident borrowers we will generally require a minimum of 35% – 50% payment.
  • Qualifying for the mortgage financing is probably no more rigorous than what borrowers in other countries are accustomed to. The borrowers will be interviewed via phone, fax and/or email to gather personal information including, assets/liabilities, employment and/or income information. Each borrower’s application will be considered on a case by case basis.
  • The mortgage approval may take approximately 24 to 48 hours after application and documentation have been submitted to the lender.
  • Documentation generally required” Income verification, tax returns, credit bureau or banker’s report (letter from their own bank stating that all accounts are in good standing to date), down payment confirmation via bank statements, copy of 2 pieces of identification and real estate appraisal.
  • The borrower will need to open a Canadian bank account for debiting of mortgage payments.
  • The borrower will require the services of a Canadian lawyer or notary public to prepare the mortgage documents and registration atthe Land Titles office. It is best if the borrower is available in Canada to sign mortgage documents at the time of completion. In the event the documents need to be couriered outside of Canada for signing, this will need to be arranged with the lawyer and lender well in advance of completion date.
What happens when a non-resident sells real estate in Canada?
  • Whenever a International Investor (non-resident) sells Canadian real estate, the non-resident is required to pay the appropriate amount of taxes on any gain. Canada has Tax treaties with many countries please check with your Accountant.
  • This certificate may be applied for in advance of the completion date by the vendor, but not until there has been a contract of purchase and sale with all subjects removed. The wait for the certificate is usually 6-8 weeks and once obtained Investor will be required to submit 25% of Capital Gain and will be required to submit a Canadian Tax Return. If the certificate is not obtained, the purchaser is required to hold back from the sale proceeds a percentage of the selling price (usually 25% -50%)
The above information is not legal or intended to be legal advice.

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Kenan MacKenzie Personal Real Estate Corporation

Phone: 604-885-7810


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RE/MAX City Realty

#101 - 938 Gibsons Way  Gibsons,  BC  V0N 1V7 

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