My question to all real estate tycoons.
My dad is non-resident and wants to buy property here in Canada. Ideally, it is preferred that he takes the mortgage obligation.
Q: What is required to buy property under non-resident name?
Q: What are tax obligations?
Q: What are possible workaround/other options?
Your input would be very helpful.
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Manjeet Singh
Hi Manjeet,
Here are some of things to keep in mind when looking to get a mortgage as a non-resident:
1. Minimum down payment required would be 35%, could be more as each deal is reviewed on a case by case basis
2. Maximum amortization allowed will be 25 yrs
3. The lender might ask for funds in a Canadian bank account covering 6 months mortgage payments and property taxes
4. Letter of Credit References from banks where the borrower resides
5. If an international credit bureau does not exist for the borrower then the lender may ask for additional documentation to review the borrowers credit worthiness
Also, your father will have to be in the country to sign documents for the Agreement of Purchase and the mortgage. You could use a Power of Attorney allowing you or someone else to sign on his behalf but some lenders are not fond of that and it may create unneccesary suspicion / questions.
Hope this helps!
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