HOW DO I GET A MORTGAGE

There are many options for financing the purchase of your new home or property. Your Realtor can guide you through this process and help you identify the choices that will work best for you. You can consult your own banker, a banker recommended by your Realtor or a private mortgage broker. The choice is yours.

WHAT IS PROPERTY TRANSFER TAX?

All property transactions in the province of British Columbia are subject to Property Purchase Tax. There are a few exemptions for first time buyers and non-arm's length transactions (ie family transfers etc.) Property Transfer Tax is 1% of the sale price up to $250,000 and 2% on amounts over $250,000. The tax is payable when the transaction registers at the Land Title Office. You can read more here .

WHAT ARE THE REGULATIONS FOR NON-RESIDENT BUYERS?

There are no restrictions on non-residents owning property in Canada. Of course you must abide by the government immigration regulations and if you want to become a full time resident of Canada you must apply for Landed Immigrant Status.

When non-residents sell their property in Canada, a Canada Customs Clearance Certificate must be obtained showing that all applicable capital gains taxes have been paid with respect to the property. Capital Gains taxes are payable on the difference between the sale price of the subject property and the adjusted cost base. The adjusted cost base of a property is the original purchase price plus all associated expenses - i.e. property taxes, costs of improvements or repairs, real estate commission paid etc.

If you choose to rent your Canadian property you will be taxed at Canadian rates on income earned from the rental. If a Customs Clearance Certificate is not obtained at the time of the sale of the property, your Canadian lawyer must retain up to 30% of the sale proceeds as a holdback until the Certificate is received.

WHAT IS THE SELLER RESPONSIBLE FOR?

His or her lawyer or notary fees re execution of documents, discharge of mortgage.
Land title office fees for discharge of mortgage
Discharge fees charged by any encumbrance holders.
Penalties associated with prepayment of financial encumbrances.
Applicable GST on any of the above.

WHAT IS THE BUYER RESPONSIBLE FOR?

His or her lawyer or notary fees re preparation and execution of documents, title searchs
Land Title office registration fees
Survey Certificate if required by lender
Costs of mortage (may include legal fees to another lawyer or notary if the lender requires a different one.)
Appraisal costs if required by lender
Insurance Premiums - may be required by lender
Property Transfer Tax (More information here .)
Applicable GST on any of the above.