All these lisings can be found at West End Vancouver Townhouse for Sale
West End Townhouse for sale - The Barclay…Click here to read more detail about 'West End Vancouver Townhouse…'
Non Resident Buyers
Whistler is a great place to invest. Whistler has matured in to a world class resort. International buyers are coming in droves from China, South Korea, India and Persia, to name a few, and they’re bringing wealth. Low interest rates, strong immigration and being an hour and a half from the most beautiful and livable city in the world contributed to another record year.
Most importantly for international buyers, there are no restrictions on non residents purchasing Canadian real estate. Financing is available for up to 75% of the purchase price of the property and some lenders will offer the best discounted rates to non-resident purchasers. Mortgages in Canada generally have a twenty-five year amortization period and most institutions will guarantee an interest rate for terms ranging from six months to ten years. The shorter the term the lower the interest rate.
It is possible to arrange financing with less than the 25% down payment however these lenders charge a higher rate of interest.
Typically Canadian lenders (financing must be done within Canada) will require the following documentation from non-resident client:
- Bankers reference lender from your current financial institution.
- Confirmation via a three month history of bank statements
- A personal net worth statement
- A completed application which a mortgage broker can assist you with.
In addition to the 25% down payment the lender will want to know that the buyer has approximately 1.5% of the purchase price available to cover the costs of closing the transaction. The typical closing costs are as follows:
- Legal fees to transfer the title of the property and register the mortgage $1,200 to $1,500.
- Property Purchase Tax (B.C.) 1% of the first $200,000 of the purchase price and 2% on the balance.
- Bank Appraisal of the property $200 to $500.
- Goods and Services Tax. This only applies to new properties that have never been occupied.
- A Canadian bank account from which to deduct the mortgage payments. To open a Canadian bank account you must be in the country
Lenders typically want the property to be purchased for investment purposes with the rental income covering the mortgage payment and the property taxes.
One other thing to keep in mind is that if you intend to rent the property the rents you receive could be subject to a federal withholding tax (income tax) on the gross income. Another option is to elect to file a Canadian Tax Return to report only the rental income earned in Canada, in which case your taxes are based on the net income from the property.
You may also have to pay a capital gains tax when you sell the property. In simple terms the capital gains tax requires that you pay tax based on the increase in value of the property at the time the property is sold.
Regarding insurance, condo insurance for fire, theft or flood etc. will probably run you a few hundred dollars for the year but most condo strata councils will make it mandatory that you acquire insurance before renting out your unit.
I hope this gives you some ideas of investing in Canadian real estate, and if you have any questions please email or call Ian Watt at your convenience and always seek independent legal advice, just to be safe.