Below is a general procedure of buying a Canada Property as a non-resident. This guide is applicable to buying property in Toronto and Vancouver.
First, select the Canada property and unit type. Then, HKD $5,000 is payable as a reservation fee.
Assign a licensed Canada attorney stationed in Hong Kong as a representative of the buyer to sign the Sales & Purchase Agreement in Canada.
After signing the Sales & Purchase Agreement, 15% of the purchase price is payable by the buyer to the attorney of the developer's trust account.
12 months before handover, the buyer is required to apply for mortgage.
Some of the Canada properties requires the buyer to pay partial amount of the purchase price 6 months after signing the contract.
When the project has been completed, the attorney will notify the buyer to check the unit. (It can either be carried out by the attorney or local surveyors). After checking the unit, the attorney will confirm the handover date. On the day of handover, the bank will release the mortgage amount to the developer. The buyer is required to transfer remaining amount before that. When the buyer gets the key, the transaction is officially completed.
When the buyer has got the key, you can assign a property management company in Canada to manage your property. They can provide services such as looking for tenants, checking and maintaining the property, paying taxes for the owner etc. The expenses will be charged directly from the rental return.
A: The commission for the agent is more or less the amount of one-month rent.
A: Foreign investors can apply for up to 65% mortgage. The interest rate can be as low as 2.5% per annum and loan period can be 25 years.
- Management Fee - Depends on the properties (Around CAD $0.5 / square feet.)
- Management Fee for Rental Management Company - The agent will charge 6% of the monthly rent as service charge
- Land Transfer Tax：2% of the property price
- Harmonized Sales Tax: 5%
- According to the local state's property valuation (Around 0.75%-1%)
- Capital Gain Tax - 12.5% of the profit from selling the property.