At the moment, there is no immigration option associated with purchasing property in Canada. As a result, you cannot immigrate to Canada solely by purchasing a residential, commercial, or industrial property.
However, you can still get a PR or a citizenship by investing in a business.
The Canadian government offers a few different types of visas for business owners, entrepreneurs and investors. The most popular one is the “Investor Immigration”. To be eligible, you need to have at least $2 million in net assets and commit to invest $1 million in Canada.
Canada welcomes skilled immigrants who are interested in creating jobs for Canadians by starting their own businesses here. The “Start-up Visa” program is specifically designed for entrepreneurs who want to establish their business in Canada and create employment opportunities for Canadians. It includes a temporary resident visa which can then be converted into permanent residence after 3 years if the person manages to create at least 1 new job per every 2 years he or she stays in Canada.
How buying a property could assist you in immigration to Canada?
Purchasing real estate in Canada does not entitle you to apply for permanent residence, but it does demonstrate your commitment to the country.
Your Canadian residency could be confirmed if you show that you’ve lived there for some time. As a result, there are two methods to benefit from owning real estate:
- In a PNP application buying a property in the province could be an indication of commitment. Consequently, the province is less worried you intend to leave the province after immigration. Of course, despite exceptional situations, property ownership is not a decisive factor.
- If you are immigrating under H&C, owning a Canadian property could be a positive factor. However, the officer considers many other criteria before ruling in your favour.
Home Buyers in Canada: Tips for Newcomers
When moving to Toronto, here are some advice on how to buy a home while still living overseas for those interested.
Understand Potential Tax Implications
Non-Canadian citizens can buy real estate in Canada in the same way that Canadian citizens can.
However, international buyers and immigrants who plan to purchase real estate in Toronto should be aware of some of the tax consequences that come with the acquisition of Canadian property. If you’re a non-Canadian resident, you’ll have to pay a 15% “Non Resident Speculation Tax” when you buy real estate in Ontario from April 21, 2017, which includes the Greater Horseshoe region (which includes Toronto).
Buying A Home In Toronto Doesn’t Grant Special Immigration Status
Immigrants considering purchasing a home in Canada should be aware that owning property on Canadian soil does not confer any special immigration benefits. Unless you have a work or student visa, or permanent residence, you are only permitted to stay in Canada for less than six months at a time.
Save Up For A Sizable Down Payment
Both immigrants and Canadian citizens will be required to make a down payment on a home. The down payment required will vary depending on the type of mortgage taken out. Conventional mortgages, for example, require a 20% down payment for Canadian residents. While this may appear to be a lot, it can help borrowers reduce their loan amount while also avoiding having to pay additional mortgage default insurance premiums.
High-ratio mortgages necessitate a 5% down payment, though this will necessitate mortgage default insurance premium payments. Non-resident down payment requirements, on the other hand, are typically much higher. You will almost certainly be required to make much larger down payments than Canadian citizens are. Down payments can be as much as 35% or more of the purchase price of a home.
Look Into Property Insurance
Purchasing a home in Toronto generally requires the purchase of property insurance. Before agreeing to extend a mortgage, lenders will want to ensure that the home can be insured. And, while it can be difficult for Canadian residents to obtain insurance, it can be even more difficult for non-residents.
When looking for a home to buy in Toronto, make sure to get quotes from various insurance providers and gather as much information on rates as possible before making an offer.
Funds Will Need To Be In A Canadian Bank
Before making an offer on a home, you must ensure that the funds necessary to complete the transaction are transferred to a Canadian financial institution well before the closing date. Depending on where you live, it could take several weeks for the funds to clear. As a result, it is advised that the funds be transferred prior to the start of the home search.
A Power Of Attorney Will Be Needed To Close
In the past, foreign buyers had to be physically present when making an offer on a home in Toronto. Electronic signatures are now commonly accepted, thanks to advances in digital technology. Video conferencing tools such as FaceTime, Skype, and Google Hangouts are also used for communication.
However, if you intend to close the house while still out of the country, a Power of Attorney must sign on your behalf. This could be your real estate agent or a lawyer to whom you have given explicit and written permission to sign the necessary documents to close the deal.
Invest in real estate in Thunder Bay.
For years, Thunder Bay has been one of the fastest growing markets, so it’s no surprise that more people are looking for an opportunity to invest there. Thunder Bay has become a popular investment destination in recent years for a variety of reasons, including its proximity to the major Canadian cities of Toronto and Ottawa, low unemployment rates, and availability of affordable housing.