What are the provisions of Canadian real estate policy?

Canada is a vast country with a small population but good welfare. Many people in China will choose to buy a house and settle in Canada. What is Canada's real estate policy? This is an issue that many immigrants are interested in. Let's take a look at it with the overseas immigration network! The following is the relevant information I have compiled. Welcome to reading.

Canadian real estate policy stipulates that

1, land ownership in Canada is divided into:

1) Royal (similar to state-owned)

2) owned by the city hall

3) owned by indigenous people (aborigines)

4) Individual ownership, including cultivated land, industrial land, commercial land and personal residential land.

5) Others

2. Laws and regulations involved in the procurement process:

Power of Attorney (POA): If the buyer wants to entrust a Canadian friend or relative to buy a house in China, he can entrust a Canadian real estate lawyer to draft a POA, which will be printed by the buyer (client) in China, signed and notarized by the local notary office in China together with two witnesses, and then sent to the Canadian lawyer by express delivery for filing. Canadian customers can make a copy of POA.

REBBA2002: Ontario real estate agents unified professional code law can protect the interests of buyers and sellers to a great extent.

Contract Law: When the buyer takes a fancy to a property, the buyer's agent will send a written offer to the seller together with the buyer. This is a formal contract, and the buyer's agent will explain its contents to the buyer in detail so that the buyer can understand his responsibilities and obligations. If the buyer does not understand the offer, the contract is invalid.

Ontario Real Estate Registration Reform Act: Real estate lawyers should go through the formalities of real estate transfer registration according to this law and other laws and regulations.

3. Laws and regulations involved in the process of owning real estate:

Regional planning: When a real estate is first developed, its use has been designated. If the new owner wants to make a big change, ask the planning department of the municipal government.

MPAC: It is responsible for the appraisal of houses in Ontario, and the municipal government will calculate the annual property tax of the houses according to the appraised value.

Each hotel is governed by Canadian federal, provincial and municipal laws and regulations.

Canadian real estate policy reform

1. The loan can be used for various properties in Canada.

Ye Wei: I love my family. MengMeng, manager of a US-Canada overseas business department, told the Beijing Morning Post that "China families can buy various types of properties in Canada with loans, including single-family villas, townhouses, apartments and commercial real estate. In addition, Canada does not restrict the purchase or loan of overseas buyers. "

Liu Chao, director of China Investor Club of 2 1 Century Real Estate, said, "In Canada, buying a house through a loan has different effects on new house transactions and second-hand house transactions. Generally speaking, when China families choose a new house in Canada, they can apply for a loan directly through the developer. However, when China families look at second-hand houses in Canada, they must first purchase houses through bidding before they can apply for loans. "

Liu Chao, for example, said, for example, a second-hand house in Canada was sold at a price of 450,000 Canadian dollars. The owner received applications from two China families, and one of them proposed 470,000 Canadian dollars to buy a house through a loan; Another China family offered 430,000 Canadian dollars to buy a house in full. In the end, the owner will choose to buy and sell second-hand houses with China families who buy houses in full. China families who bought houses through loans lost the opportunity to buy houses.

"In the second-hand housing transactions in Canada, good houses are more sought after. When China families decide to buy second-hand houses through loans, they must give a relatively high price, so that it is possible to impress the owners and get the opportunity to buy and sell second-hand houses. " Liu Chao stressed.

The mortgage interest rate in Canada is about 2.5%.

China families borrow money to buy a house in Canada, and the determination of the loan ratio is related to the appraised value of the house. Liu Chao explained, "The evaluation value of new houses in Canada is basically calculated according to the original value of houses, but the evaluation value of second-hand houses in Canada is lower than the market price of houses."

In addition, the repayment ability of China families will also affect the loan ratio. Liu Chao said, "When China families apply for a loan to buy a house in Canada, they need to provide relevant materials such as income certificate, tax payment certificate and identity certificate. Income certificates, tax payment certificates and other materials can reflect the repayment ability of China families. Canadian banks may give more loans to China families with better repayment ability.

"Generally speaking, the down payment ratio of Canadian loans to buy a house is about 30% to 40%, and the loan ratio is about 60% to 70%. When buying a new house in Canada, you can pay the down payment in installments. When China families buy a new house, they pay 10% down payment first, and then pay the remaining down payment after half a year. " MengMeng said that the Canadian mortgage interest rate is relatively low, around 2.5%. Canadian banks will have some fluctuations in mortgage interest rates. The longest loan period is about 25 years.

It is worth noting that the repayment time in Canada is different from that in China. MengMeng explained, "When China families buy faster houses in China, they often start to repay the loans before handing over the house. When China families buy an auction house in Canada, they usually go through the loan formalities six months before the delivery of the house, and begin to repay the loan on the same day. China families borrow money to buy existing homes and second-hand houses in Canada. They all apply for loans between the signing of the purchase contract and the transfer, and they begin to repay loans on the day of transfer. "

3. Canada's housing purchase policy has changed.

When China families buy houses in Canada, they should pay attention to the changes of relevant policies. 2 1 Century Real Estate China Investor Club Director said, "This year, in addition to the Greater Vancouver area in BC, a new Canadian area, greater toronto area, Ontario, has been added to levy property transfer tax on overseas buyers. The tax rate is 65438+ 05% of the total house price. However, overseas buyers with Canadian work visas, immigration status or Canadian citizenship can be tax-free or tax-refunded. " The property transfer tax paid by the above-mentioned overseas buyers cannot be used for loans. Therefore, when families in China apply for loans to buy a house, they should also prepare an extra sum of money to pay taxes.

Canadian real estate tax policy

1, non-resident speculation tax

20 17 On April 20th, kathleen wynne, Governor of Ontario, and Charles Sousa, Director of the Finance Department of Ontario, announced that Ontario had introduced new policies to regulate the property market, including levying 15% purchase tax on non-resident houses, prohibiting speculation in uncompleted flats, encouraging developers to build rental houses, and strictly examining the professional norms of real estate agents. The New Deal will take effect on April 2 1 local time.

The most important content of the New Deal is that Ontario will impose an additional transfer tax of 15% on house buyers who are not Canadian citizens or permanent residents and do not live in Ontario, which is officially called "non-resident speculation tax" (non-resident speculation tax). This policy refers to the overseas buyer tax introduced in Vancouver, British Columbia last year, which is mainly aimed at non-resident buyers who have already bought a house and are purely speculative.

2. Goods and services tax

If you buy a new house, you need to pay goods and services tax, and the tax rate is 5% of the house price.

If you buy a second-hand house, you don't have to pay goods and services tax.

If you buy a newly renovated second-hand house with an area of more than 85%, you still need to pay goods and services tax.

The deadline for tax refund in Canada is before April 30th every year, and all taxpayers can apply for GST tax refund to the Canadian Revenue Agency (CRA).

3. Land transfer tax

The fiercest tax in Toronto in recent years is this land transfer tax. If you want to buy a house in Toronto, you must pay both Ontario land transfer tax and Toronto land transfer tax.

Provincial and municipal land transfer tax adopts progressive tax rate, and the specific calculation method of land transfer tax in Ontario is as follows:

If the selling price is less than 55,000 yuan, the transfer tax will be levied at 0.5%, that is, 275 yuan;

The part with a selling price of 55,000-250,000 is taxed at 1%, that is, 1950 yuan;

The part exceeding 250,000 yuan shall be taxed at 1.5%.

If the property is a semi-detached house or detached house with less than two units, the calculation of taxes and fees is slightly different:

The part with a selling price of 250,000-400,000 is taxed at 1.5%, that is, 2 250 yuan;

The part exceeding 400,000 yuan is taxed at 2%.

In other words, to buy a 500,000-yuan single-family house, the land transfer tax in Ontario is 6,475 yuan (275+1.950+2,250+2,000).

Toronto land transfer tax is calculated as follows:

If the selling price is less than 55,000 yuan, the transfer tax will be levied at 0.5%, that is, 275 yuan;

The part with a selling price of 55,000-400,000 is taxed at 1%, that is, 3 450 yuan;

The part with a selling price of 400-40 million yuan is taxed at 1.5%, and the part exceeding 40 million yuan is still taxed at 1%.

If the property is a semi-detached house or a detached house with two or less sets, the part exceeding 400,000 shall be taxed at 2%.

A detached house with a value of 500,000 yuan, Toronto land transfer tax is 5,725 yuan (275+3,450+2,000 yuan).

In this way, if you buy a 500,000 single-family house in Toronto, the single local tax will reach 1.22 million yuan. However, if the buyers choose to buy a house in the 905 area of GTA, they only need to pay the land transfer tax in Ontario, and do not need to pay the land transfer tax in the city. Therefore, in the past two years, the voice of abolishing land transfer tax in Toronto has become louder and louder.

In addition, it should be reminded that first-time buyers can enjoy certain land transfer tax concessions, with a maximum reduction of 2,000 Canadian dollars.