Non-resident potential buyer

5 Replies

I am working overseas and thinking about buying a house for my father to live in. It looks like if I want to buy, since I am now classified as a non-resident, I would be looking at a minimum 35% down payment. Just wondering if anyone has gone through purchasing a property from overseas as a non-resident, or if anyone has knowledge of the subject and associated costs.

Many thanks,

I recently just bought my property while overseas, so hopefully I can help. 

The percentage you put down depends on the lender, I only had to put 20% down, so I recommend shopping around. There are no other associated costs, it is the same process more or less than if you were standing right there. The only difference is the timing, like having to fax documents and dealing with the time difference. 

If anyone is trying to upcharge you on anything because you are overseas, walk away. There is no extra hassle involved besides the time difference, as i said before. My lending agent told me I was actually one of the easier ones he has done.

I don’t know if different states have different laws about this, but definitely ask around and do your research. 

Thanks for the prompt response,

I'm in Canada so of course a bit different. I have learned that many things are lender specific, not top down government rulings. if anyone else has any information please feel free to chime in.

@Will Tavis There's a 15% Non-Resident Speculation Tax if you're planning on buying in any of these areas in Ontario:

  • City of Barrie
  • County of Brant
  • City of Brantford
  • County of Dufferin
  • Regional Municipality of Durham
  • City of Guelph
  • Haldimand County
  • Regional Municipality of Halton
  • City of Hamilton
  • City of Kawartha Lakes
  • Regional Municipality of Niagara
  • County of Northumberland
  • City of Orillia
  • Regional Municipality of Peel
  • City of Peterborough
  • County of Peterborough
  • County of Simcoe
  • City of Toronto
  • Regional Municipality of Waterloo
  • County of Wellington, and
  • Regional Municipality of York.

Hi @Will Tavis , it seems you will have to pay the Non-Resident tax based on your situation, but there are several ways for you to get it back (attending university, being employed full-time, starting a company, etc.). Please look into these strategies carefully before making a decision.

The speculation tax only applies to non-residents who are not Canadian citizens.  If you are a Canadian citizen (hold a Canadian passport), you don't have to pay the NRST.