BUYING A HOME IN CANADA
As Canada is a fairly expensive country, buying property in Canada can be expensive and may require a home loan. Unlike some other countries, you do not need to be a citizen or permanent resident in Canada to purchase property. The only restrictions that apply are provincial restrictions on how much land you can purchase. As these vary, it’s best to check with the government of the province you are planning to buy property in.
How to Buy a House
To get an idea of what type of property is available and how much it will cost to purchase, check out real estate websites such as Prime Location.
It’s recommended to hire a realtor or estate agent when looking to buy property. In Canada, realtors will dedicate their time to finding the right property for you. Realtors also have the added benefit of knowing the property market inside out, so they can advise you on houses that are good value, overpriced etc.
Before you make an offer to purchase property, you must obtain a pre-approval letter from the lender you plan to use for your mortgage. This letter will provide proof that you can finance your purchase. Lenders usually look at income and expenditure before providing someone with a pre-approval letter.
Once you have negotiated a price, a written agreement will be drawn up. When both parties are satisfied with the agreement, a closing day (or completion date) will be set when the full amount is paid to the seller and you can move in to your new property.
Getting a Mortgage
When applying for a mortgage in Canada, you will need to provide proof of income and be able to pay the required deposit. You will also need to undergo a credit check. Many Canadian banks will accept a credit check from your home country. All of this is important to ensure you will be able to pay for your mortgage.
The required deposit can be between 25% and 35% of the property’s value. Banks generally approve loans on a case by case basis.
It’s important to obtain insurance for the property, as most mortgage providers will require this to approve your loan.
For a list of realtor agencies and contacts throughout Canada, see our directory.