Can foreigners buy a house in Montreal?
Important update: In order to stabilize the housing market and make it more affordable, Canadian government will impose a 2 year ban that will prohibit foreign investors from buying a property in Montreal. The ban will take effect starting January 1 2023. Temporary residents such as people on work permit, study permit as well as permanent residents will be exempt.
Yes, foreigners can definitely buy property in Montreal, Canada. The country’s real estate market is open to anyone outside Canada, including Canadian citizens and non-residents. So if you’re considering purchasing property in Canada, you can do so.
You’ll be happy to know there are no restrictions on foreigners buying property. Whether you’re an investor, expat or planning to live in the country long-term, you can take advantage of the many opportunities to buy real estate here. If you have questions about purchasing real estate as a non-resident, don’t worry – you’ll get all the answers here.
How do you know if you fit the category of a non-resident?
The rules for Non-Residents buying real estate in Canada have more to do with how often they spend time in the country rather than citizenship. If you usually live in another country and are considered a resident of Canada, you may still be able to file your taxes.
However, even those Canadian citizens who don’t reside in Canada for more than 180 days fall into the category of non-residents. This means a person who has no significant residential ties in Canada if they have lived outside of the country for most of the tax year is subject to the same rules as a non-resident when it comes to buying property.
Does Montreal Have A Non-Resident Buyers Tax?
Good news, if you’re not a resident of Montreal, you won’t have to pay any additional taxes when buying property here! This goes for anywhere else in the province of Quebec too.
Can A Foreigner Get A Mortgage In Canada?
There are no limitations on the number or kind of real estate or business you can buy in Canada as a foreign national. Some Canadian banks do provide mortgages to non-resident buyers. However, it requires an application with proper documentation and identification and the down payment requirement is more 35%.
Documents required for Mortgage for non-resident buyers
- Reference letter from the person’s bank
- Employment letter that can verify the foreigner’s income in US or Canadian Dollars
- 3 Months bank statement
- Credit Check
- A Canadian bank account (mandatory to be opened before the mortgage funding for payments)
Furthermore, there are more options for home financing for those who are not eligible or meet the requirement. They can get financing from private lenders with relatively high-interest rates.
Does A Foreigner Need A Lawyer To Buy A House In Montreal?
Unlike Ontario, Notary is used to sign the transfer of real estate between two parties in Montreal, Canada. Additionally, there is specialized software that notaries can use to access information for the transfer as well as other aspects of a property transaction. This software can help make the process go more smoothly, so it’s essential to have a notary present for the closing.
For a foreigner, it’s vital to hire an experienced notary that has experience with non-resident purchasing procedures.
Is Buying A House In Montreal A Good Investment?
Montreal is the second largest city in Canada and is one of the most affordable places to invest in real estate. The town has ample opportunities to generate revenue and caters to investors by offering plenty of chances to generate income. This is hardly surprising given that this city is also named the best student city in the world, beating the great London, Berlin, and Tokyo in the 125 cities Global ranking.
With booming real estate, more and more non-resident investors are falling in love with Montreal and are looking to buy property here. So, if you’re a foreigner and thinking of buying a house in the business capital of Quebec, Montreal, then it’s undoubtedly a great choice and totally worth it.
The Bottom Line:
Buying a home as a non-resident is an excellent choice from both investment and a living point of view. However, it’s vital to get help from reputable professionals, including local Montreal real estate agent and experienced mortgage broker, to provide you with in-depth guidance regarding all the crucial things involved in the property purchase ranging from insurance, home inspection, taxation, buying/selling and lastly most importantly to ensure your goals, needs and expectation are met.