Upper west side condos oakville . Basic information about foreigners buying a house in Toronto. There is no difference between foreigners buying houses in Canada and local residents buying houses.Please Visit: Upper west side condos oakville to Get Your VVIP Registration Today!
The procedures for buying a house are the same, and loans are easier; rental income and taxes after sale are subject to local tax regulations.
Many friends asked me if foreigners with no identity can buy a house in Canada and how to buy it. As a real estate agent in Toronto, Canada, I have helped many non-Canadian compatriots successfully buy and sell real estate in Toronto in recent years. I will answer the above two questions.
Does the Canadian government allow foreigners to buy houses in Canada?
Answer: yes, foreigners are welcome to buy a house in Canada!
II. Procedures for foreigners to buy houses in Canada.
In Toronto, it takes as soon as half a month to go from looking at a house to handing in a house. If the buyer, keep an eye on the house and leave Toronto before the house is handed in, you can find a lawyer to make an authorized POA arrangement before leaving: find a trustee and sign the entrustment agreement. The trustee can handle the handover of the house on behalf of the client, such as paying the deposit, handling the loan, taking the key and signing relevant documents with the lawyer, and so on. If you need a bank loan, see below.
III. Loans for foreigners to buy houses in Canada.
There is no difference in loans between foreigners and local residents. Successful bank loans require:
- You need a bank account. The purpose of opening an account is to remit money and repay the loan on time. When opening an account, the account opener must come to Toronto in person. Major Canadian commercial banks have branches or offices in China that can help open accounts, but such accounts usually need to be activated in Canada in order to operate normally.
two。. If you have ever spent or borrowed money in Canada, you cannot have a bad credit history in Canada.
- Down payment ratio: in general, the house price is less than 1 million, and the buyer can get a bank loan if he pays 35% of the down payment. The larger the purchase, the higher the down payment. The specific practice shall be based on the latest regulations of the bank.
Four. the expenditure of foreigners buying a house in Toronto:
Foreigners and local residents spend the same amount of money on buying a house. Generally speaking, there are the following items:
- Room payment.
two。. The HST, tax rate for new houses is 13% of the house price; second-hand houses are tax-free.
- Transfer tax: there are both old and new houses. The tax rate is about 2% of the house price, 5% of the house price, subject to the calculation of the lawyer.
- House inspection fee: about $350 Mustang 500.
- Lawyer’s fee: about $1500, murals 3000, based on the lawyer’s calculation.
- Property insurance: about $300-2000.
Five. how do foreigners pay tax on rental income in Canada.
The principle for foreigners to pay tax on rental income in Canada is the same as that for local residents: rent is taxed according to income after deducting related fees. Tax returns are required at the end of the year.
VI. Taxation of foreigners selling houses in Canada.
When foreigners sell their houses in Canada, they have more procedures called “tax clearance Certificate (Clearance Certificate)” than local residents, because the Inland Revenue Bureau is afraid that foreigners will run away after selling their houses and fail to pay taxes.
In order to apply for the tax clearance certificate, the foreigner seller should first fill in the application form for the tax clearance certificate and send it to the tax bureau together with the relevant supporting documents, and the tax bureau will issue the tax clearance certificate after the hearing of the tax bureau.
At the time of the transaction, if the lawyer has received the tax clearance certificate issued by the tax bureau, the tax will be deducted directly, and the rest of the sale money will be handed over to the seller; if the tax clearance certificate is not received, 25% of the house sale money will be deducted as a deposit, waiting for the tax clearance certificate to be received, and the rest will be returned to the seller; if the seller does not apply for a tax clearance certificate, the lawyer will hand over the deposit to the tax bureau, which will be settled when the seller declares tax at the end of the year.