How do non-local residents buy Canadian houses?

Many people will choose to buy a house in Canada, so how can non-Canadian residents buy a house in Canada? This is a concern of many immigrants. Let's take a look at it with the overseas immigration network! The following is the relevant information I have compiled. Welcome to reading.

How do non-residents buy a house in Canada

How to get a bank loan?

Explain the loan first. Even non-local residents can get low-interest loans. Mr. Zhou, a mortgage expert from Royal Bank of Canada, introduced the situation to us.

Canada's mortgage interest rate in the past five years is the lowest in the past 35 years: the five-year fixed interest rate fluctuates between 2.5% and 3.5%; The five-year floating interest rate is between 2.0% and 2.6%. The cost of capital is much lower than that of China. In the near future, interest rates will not change significantly, mainly because there is no obvious expectation of strong macro-economy in Canada. In addition, buying a house with loan financing and applying for credit line products can also revitalize the real estate and prepare for other investments in the future.

Mr. Zhou said: Every bank has different views on non-resident loans. Usually, due to the limited social connections of non-Canadian residents, they can come and go at any time. Many banks believe that the risk of undertaking non-resident business is higher than that of immigrants and local residents, and even some banks will have more complicated procedures when opening accounts.

It is difficult for non-local residents to apply for housing loans with proof of assets. Some banks, regardless of the background and economic ability of non-residents in China, will not recognize domestic documents in China, only look at the market rent of the property purchased in Canada, and then work out a loan amount. The advantage of this is that it is simple and can be done with the contract; However, the disadvantages are also obvious: the rent-to-house ratio in Vancouver is very low (about 3% of residential property), and the loan ratio of slightly more expensive houses is just the same.

It will be very low. Sometimes, if you buy a house over1000000 Canadian dollars, you can only get a loan of 40% or less, and the loan becomes a chicken rib.

The bank's preferential treatment for non-local residents is as follows: recognizing domestic background and information, buying a house below 2 million can basically achieve 65% quota, which requires domestic funds and income information; At the same time, because non-residents have no credit record in Canada, they will be required to issue credit certificates to local financial institutions to prove that their credit records are good; If you buy an expensive mansion, some banks will also examine and approve cases according to the overseas economic strength of customers. Usually, the amount paid is no different from that of local residents and immigrants.

There are two forms of housing loans in Canada, one is direct loans, such as: 654.38+0 million Canadian dollars to buy a house, 60% direct loans; Another practice is called "credit line", that is, pay 1 10,000 yuan in one lump sum, and then use the house as collateral to lend 60%. For non-residents, the vast majority of loans will be granted to the latter. The same loan is 600 thousand Canadian dollars. What's the difference between them?

First, the loan interest rate will be slightly higher than the former; Second, if the latter scheme is adopted, if C $600,000 is invested in financial wealth management products, then the mortgage interest of C $600,000 can be used to offset the wealth management income, such as the loan interest rate of 3% and the wealth management income of 7%. Originally, non-residents were required to file tax returns for this 7%, but due to the need to pay the "investment cost", that is, the loan interest, the part that actually needs to file tax returns became 7%-3% = 4%. This is a common method used by tax experts to make reasonable tax avoidance plans for everyone. Both non-residents and residents should consider using tax-saving schemes.

If a non-resident wants a loan, he must first open an account in a bank. The biggest difference between this account and the resident account is that the interest income generated by the account is not taxable. Yes, you are not mistaken. The IRS of Canada cancelled the interest tax on non-resident accounts from June 65438+ 10/.

Non-residents can authorize their relatives or friends in Canada to complete mortgage loans on their behalf. In Canada, the policy width of bank staff at different levels is different, so if non-residents want to buy a house loan abroad, they must find someone who has the ability to help.

Frequently asked questions about non-residents buying houses in Canada

How to choose a trustworthy real estate agent?

First of all, brokers must register with the local real estate bureau and be bound by relevant laws; Secondly, the operation of real estate sales in Canada is different from that in China. Most of the houses are publicly sold on the website of the real estate bureau, which means that all brokers are basically faced with the same houses, so the prices of houses are naturally restricted by the market, and it is almost impossible to drive up the prices. Third, find a reputable broker, that is to say, a broker who can give appropriate advice from the standpoint of customers. It can be said that most real estate agents in Vancouver are trustworthy. They not only devote themselves to their work and often continue to work during normal meals and breaks, but also make great contributions to the adaptation of new immigrants to their early life as soon as possible.

Do I have to go to Canada to buy or sell a house myself?

No, the real estate agent you hired will handle the documents you need to sign in the process of buying and selling through modern communication means: fax, scanning and email. The house inspection is reported by a third-party registered house inspector; The final money-house transaction and obtaining the title certificate documents from the real estate bureau are completed by the respective lawyers of the buyer and the seller. Some signatures may need to be completed at the Canadian Consulate in China.

I decided to buy a house in Canada. How can I get a deposit for going to Canada?

If you already have a personal account in a bank in Canada, you can directly transfer the down payment to the account, and then ask your bank manager in Canada to draw a draft equivalent to the down payment and write it in your lawyer's trust account. If you haven't opened a personal account in Canada, you can open an account in Hong Kong.