Are you a non-resident who is planning to buy or sell residential real estate in Ontario? It's important to understand that there are special considerations you need to be aware of beyond the standard closing requirements. Contact us now to schedule a consultation and ensure a smooth and successful transaction.
Contact us ▸Canada's ban on foreign homebuyers, which took effect in 2023, has a significant impact on non-residents who want to buy a property in Ontario. The ban prohibits non-residents who are not citizens or permanent residents of Canada from purchasing residential property in Ontario for two years. Non-residents who violate the ban will face a $10,000 fine, and the government has the power to seize the property. The ban was introduced to address concerns that foreign investors were driving up housing prices and making it more difficult for Ontarians to afford homes.
Attorneys at Khan Law can help you navigate the legal landscape to ensure your rights and interests are protected. Contact us today to learn more about your options.
Non-residents must make special considerations for issues beyond the standard closing requirements. It is recommended to speak to an experienced real estate attorney at Khan Law to learn more.
Yes, mortgage rates and terms can vary significantly for non-residents where the buyer does not work in Canada or have an established Canadian income. For these clients, most Canadian banks and lenders require higher down payments, often with a minimum 35% down payment in cash and a maximum of 65% of the home's value provided as a mortgage
The NRST is a 25% tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by non-residents of Canada. The NRST is paid in addition to the Land Transfer Tax for those in the GGH area.
Non-residents—individuals who are not Canadian citizens or permanent residents—are subject to additional legal fees and purchase expenses.
Yes, in some cases, a foreign national who becomes a permanent resident of Canada within four years of the purchase date, an international student enrolled full-time at an approved institution in Ontario for at least two years, or a foreign national working full-time with a valid work permit in Ontario for at least one year since the purchase date, may be eligible for a rebate
To qualify, the foreign national must own the property alone or with their spouse and live in it within 60 days of purchase.
An exemption from the NRST may be available in some cases, such as if the buyer is a nominee under the Ontario Immigrant Nominee Program at the time of the purchase or acquisition, or a protected person under section 95 of the Immigration and Refugee Protection Act at the time of the purchase or acquisition. Additionally, a foreign national who jointly purchases residential property with a spouse who is a Canadian citizen, permanent resident of Canada, nominee or protected person may be exempt from the NRST.
Navigate the complexities of real estate transactions in Canada as a non-resident with the help of our experienced team of lawyers. Whether you're a first-time international home buyer or an experienced investor, we will provide you with legal advice and guidance every step of the way.
Request a consultation now for your real estate purchase and selling needs.
Sign up with your email to receive our newsletter and stay informed about the latest legal developments and special offers.
Khan Law is a boutique law practice that has been providing legal services to the Greater Toronto Area since the year 2000.