The down payment is usually 35% of the purchase price (or appraised lending value) but there are circumstances where as little as 25% down is acceptable depending on the applicant’s information and the purchase price of the property.

There are also interest only mortgages available and interest rates are generally the same as are available to Canadian citizens. You can choose between a fixed rate of interest or a variable rate of interest that will change as the prime lending rate changes.

Repayment of the mortgage is usually over 25 years with payments made monthly, biweekly or weekly from a Canadian Bank Account. It is suggested that you transfer enough funds to cover the property for a 3-6 month period of time. 

 Lenders will require supporting documentation for the file, such as:

1)Proof of your down payment (Bank Statements etc)
2)Reference letter from your Bank in your country of Origin
3)Appraisal by a Bank Approved Appraisal for the property
4)Identification and 2 personal references 
5)US Residents, a copy of their US Credit Bureau
6)Income verification, personal Tax Returns for the previous taxation year.

There are also programs available for professional clients who have obtained a work visa and have full time employment in Canada, that will allow you to purchase with as little as 10% down at normally discounted mortgage rates. 

It is suggested that you use a Canadian Accountant to prepare your Non Resident Canadian Tax Return form NR 6 each year.  If the property is a rental property, non-resident purchasers must be cognizant of the tax implications as you are required to pay Canadian Customs and Revenue (CCRA) taxes based upon the income on the property.  Failing to file a return will hold up any future sale of the property as the Lawyer is required to without 25% of the sale proceeds until confirmation of the Tax situation has been determined. This could delay the sale or cause the contract to be void if you are unable to complete on time. 

For more information on taxes, click here.

Closing Costs – In addition to your down payment for your new home, you will
have additional fees for the purchase transaction. There is a BC Property Purchase Tax (1% of the first $200,000 and 2% of the balance above) and if applicable, the Goods and Services Tax. A Canadian Tax Accountant can help you determine the GST for the property as there are a few instances whereas the tax is reduced. 

Typical Closing Costs include:

• Appraisal Fees $284. within city limits/acreages and larger homes are higher
• Legal Fees average $800-1000 
• Home Inspection Fees $300
• Survey Certificates $300-500 or Title Insurance in lieu of $150-200
• Fire insurance policies
• Septic and Well Water Certification
• Adjustments for Property Taxes, and prepaid Utilities