Can you buy a house in Canada from India?
The answer is Yes
Can I invest in real estate in Canada?
The answer is Yes
Over the last few years, the Canadian Real estate market has drawn worldwide attention, many real estate investors around the world are looking forward to investing their money in this booming market. Knowing that their investment will pay them a high Return of Investment in coming years.
Canada is one of the most prominent destinations for immigrants across the world. From International students to Job seekers, people migrate to Canada to start a new beginning in their life. This factor helps to surge the price of real estate because in the future they will look to buy houses in the country.
Why Invest in Canada Real Estate?
- Canadian real estate market has given a tremendous returns over the past 10 years.
- Canadian strong economy and a higher economic growth provides ample oppurtunities.
- Canada is hub of immigrants and many hoping to buy a house in the country.
- Rental is one of the most significant passive income. Many international students looks for an accomodation during their initial period.
- Rental income is enought to support your mortgage.
- Canada welcomes buyers from across the world, there are no restrictions on foreigns/non residents on buying property in Canada.
- Mortgage with 35% of down payment.
- Interest rate on mortgage is extreamly low compared to rest of the world, average annual interest rate hover around 2%.
- Canadian real estate market has shown steady growth for over 2 decades.
Regulations for Foreigns buying home in Canada
If you are a non-resident of Canada and want to invest in the real state market of Canada. There are some Regulations of the government which is needed to be addressed.
By giving an ROI of more than 30 percent, in the pandemic, Canada has shown that it’s the best in the world you can invest.
Canadian Banks allow foreign nationals to invest or buy a property in Canada as long as you are putting 35% of the down payment.
If you buy a Pre-construction house, the majority of builders will ask you to pay 35% of the downpayment. But the downpayment will go in installments.
The interest rate at which Canadian Banks can provide your mortgage is just 1.5 – 2% annually. You need to provide your Bank statements for the last 6 months. You should have enough amount for a downpayment as well as one year of loan/mortgage payment.
Non‑Resident Speculation Tax is a 15% land transfer tax imposed on non-residents if they purchase residential property in the Greater Golden Horseshoe Region (GGH).
But there are a few exemptions such as if you become a permanent resident within 4 years of the purchase of property, you can get 15% back into your account.
This tax is not applicable to commercial, agricultural and industrial properties.
How to get Mortgage in Canada for non-residents
All non-residents buyers who need debt to buy property, need to meet the mortgage eligibility from the Canadian banks. Bank will ask for a minimum of 35% of the downpayment.
Note:- You cannot include rental income as part of your income to qualify for the mortgage. Your downpayment cannot be a gift from other person.
Investors need to be available in Canada in this process. The buyer needs to visit the bank to open the bank account and should be present at the time of closing the deal.
Documentation required for opening a Bank Account in Canada
- Proof of Income, (Salary slip/ITR).
- Bank statement of last 6 months as a proof of availability of funds for downpayment and installment of mortgage for 1 year.
- Letter of Reference from your Bank in your country.