How to buy property in Canada
International property buyers do not face any restrictions to buying a home in Canada.
Anyone planning on staying in Canada less than six months will be considered a non-resident, and those planning on staying longer will need to apply for residency.
The process is straightforward and the use of a realtor is recommended as sellers usually pay the fees.
The appointment of a lawyer is also recommended, ensuring all necessary checks are performed prior to completion.
For purchases being funded with a mortgage, a deposit of at least 5 per cent is required, and anyone putting down less than 20 per cent will require mortgage default insurance.
Fees and charges
All buyers must pay the Property Transfer Tax, which is implemented on a sliding scale (all prices quoted in CAD$):
- 1 per cent on the first $200,000, plus;
- 2 per cent from $200,001 to $2 million, plus;
- 3 per cent above $2 million to $3 million, plus;
- 5 per cent on the balance of the purchase price above $3 million.
Foreign nationals are subject to the 20 per cent Foreign Buyer Tax, payable on completion.
Furthermore, the City of Vancouver levies an Empty Homes Tax, a 3 per cent annual charge based on its assessed value each year. The tax does not apply to those living permanently in their homes, or properties with long-term tenancy agreements of at least 180 days in a calendar year./
All homeowners must submit Empty Homes Tax declarations to city authorities as failure to do so will result in the city deeming them vacant.
British Columbia levies a Speculation and Vacancy Tax to most areas in the Metro Vancouver Regional District and surrounding areas at 0.5 per cent for residents and Canadian citizens, and 2 per cent for foreign nationals. Again, homeowners must declare any relevant exemptions annually to the authorities.
While Knight Frank’s focus is on Vancouver and its suburbs, our in-house expertise alongside our relationships with leading affiliates means we can help with any luxury property transaction needs anywhere in Canada.
If you have any further questions, please consult our buying guide or feel free to contact the International Property team, and we can provide you with any information you need. Alternatively, start your Canadian property search now.