How to Buy a House in Canada
Whenever you invest in something it is always wise to be aware of all the financial and legal aspects involved with it. And when it comes to the real estate, it becomes more important as it requires a heavy investment. If you are visiting in a country like Canada then you should have complete knowledge on the subject “How to buy a house in Canada”.
First of all you need someone to guide you through the process. This is necessary as it will help you to know about the best location, to consider all the financial implications and to examine legal aspects to avoid any issues later. Real estate agents will definitely help you but you have to verify the license from their provincial real estate agency so that you can assure yourself that they are genuine. Once you have met Canadian real estate agent, study the pamphlet which describes all his responsibilities. The basic ones include negotiating from your side, abide by your lawful instructions, and assure the fund transfer to sellers on your behalf and thus completing the transaction.
While researching on how to buy a house in Canada, also research on how your transaction will be secured. The provincial commission has adopted various measures to avoid any fraudulent transactions. Firstly all the agents are audited once in a year to make sure they are abiding by all the rules of the province. In case of any disagreement, province can impose fines, suspend them or revoke license. Secondly all real estate agents have their insurance policy which could be used to pay indemnity in fraud cases. Besides these, provinces have recovery funds to recover the loss occurred to buyers.
A nonresident can even buy a house in Canada. Only some provinces have certain restriction over some areas, like on Prince Edward Island one has to apply to the Island Regulatory and Appeals Commission for land exceeding 5 acres or which have shore frontage greater than 165 feet. For owning a house in Manitoba, you have to assure them that you will shift here within 2 years. Saskatchewan allows purchase of land up to 10 acres size while in Alberta you cannot own more than 2 plots and that too not exceeding 20 acres.
Now once you are updated with all the information, you need to decide how you are going to finance your purchase. For borrowing money you should know all taxes, appraisal fees, insurance costs, closing fees. This is to minimize your cost. Try to pay maximum money as down payment as it will lower the monthly mortgage payment. If it is lower than 25%, than you need to insure your loan with a mortgage insurance company.
For non residents, you can look for some sort of registered retirement saving plan (RRSP) in your country as offered to Canadian citizens. In this, they can withdraw tax free $20,000 from RRSP to buy a house in Canada. They have 15 years to payback the amount without making it part of their gross annual income.
With all the above information now it would have become easy for you to go ahead as you know how to buy a house in Canada.
You can get more information about Real Estate Company Canada by visiting Canada Real Estate Listing
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