Ontario remains a hot spot for global real estate investment. For non-residents, purchasing property involves unique challenges but offers rewarding opportunities.
Who Is Considered a Non-Resident?
A non-resident includes:
- Foreign citizens without permanent residency.
- Temporary residents without work permits.
Special Taxes and Requirements
- Non-Resident Speculation Tax (NRST):
An additional 25% of the property purchase price applies to non-residents.
Exemptions: Temporary workers or international students on valid permits may qualify for refunds. - Minimum Down Payment:
Non-residents typically require a 35% down payment. For a $600,000 home, that’s $210,000 upfront. - Documentation Needed:
- Valid passport.
- Proof of income (foreign tax returns, pay stubs).
- Canadian bank account.
Challenges and Solutions
- Currency Exchange Risks:
Exchange rate fluctuations can increase your purchase cost. Consider locking rates with a forex broker. - Limited Lender Options:
Not all banks work with non-residents. Mortgage agents connect you with lenders specializing in international buyers.
Long-Term Considerations
If you plan to rent out the property, understand Canadian tax rules. Non-residents earning rental income must file Canadian tax returns.
The Mortgage Path With Damian 
Leave a comment