Buying a house in Canada without being a Canadian citizen. Possible?

Hello markreed

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Kenjee
Expat.com

Well for the most part, Canadian permanent residence (equivalent to US green card holders) are treated the same as Canadian citizens. So, you could attempt to be a Canadian PR, to avoid potential problem buying a home here.

Now, what are the potential gotchas - the only thing I can know for example is the fact that you probably will not be able to obtain as much selection of home mortgages as you would like. Its will be very restrictive. If you intend to pay the home cash, then that's not going to be an issue. But most lenders prefer you be a Canadian PR at the very least. If not you're rates will be higher.

Then there is also the other aspect where you intend to buy the home. If it is like Vancouver which recently passed the bill to introduce a 10% sales tax for foreign home buyers, well expect paying 10% more.  see link http://www.cbc.ca/news/business/b-c-for … -1.3703759

I would be buying in Quebec or possibly Nova Scotia. But I have since learned of a significant discouragement. I am 65 and buying partly to give my daughter, 18, access to a second home in CA when I die (or sooner if she likes it). From what I understand, the tax when she inherits the property would be around 25%. That is too much for my liking. I don't mind property tax, but they treat the inheritance harshly in my view. Oh well. I can still visit and rent for 6 months per year.

Thank you for answering. I appreciate it!

I am not marketing here, yes you can buy, you will need a large down payment, and selective lenders do offer for non residents, and you need more than 35% , PM me, myself mortgage agent. Thanks, Vijay

My understanding of the inheritance tax (with regard to housing) it that taxes will not be paid until the asset is sold and the tax will be based on the increase of value from when the house was inherited. (Capital gains tax.) You might be able to avoid this eventuality by putting the house in both yours and your daughters name. If neither of you are residing in the house, it will be considered an investment and the sale will be taxable. Like anything a good tax lawyer will be able to give you the most helpful advice.

If she is not already a PR she may find it difficult to move to Canada, based on the ownership of the home.

As to the harshness of inheritance tax in Canada - spouses and common-law partners do not have to pay the tax, as the property is viewed as joint ownership, but children are subject to inheritance tax, which seems fair to me. If you want to avoid the tax, leave your daughter money (assuming that in your home country there is no inheritance tax) and let her buy the house after the fact.

Thank you for the thoughtful replies. I am grateful to you.