What is the difference between a freehold and a condo in Canadian real estate?
In Canada, a freehold property means the owner has complete ownership of the land and the structure on it. In contrast, a condo (condominium) involves owning a unit within a larger building, and the owner often shares common areas and facilities with other residents, contributing to the costs through condo fees.
Do I need a lawyer to buy a home in Canada?
Yes, in Canada, you typically need a real estate lawyer or notary in Quebec to handle the transaction, ensure the title is free from encumbrances, prepare the statement of adjustments, and facilitate the financial aspects of the purchase.
What is a land transfer tax?
Land transfer tax (LTT) is a tax levied by provinces and, in some cases, municipalities on the transfer of property. The tax amount varies based on the property’s purchase price and location, and first-time homebuyers might be eligible for rebates in certain provinces.
How does the mortgage system work in Canada?
In Canada, homebuyers can get a mortgage loan from banks, credit unions, or other lenders. Typically, you need to make a down payment (minimum 5% for homes under CAD 500,000) and then pay back the loan with interest over a set term (like 25 years). Interest rates can be fixed (unchanging for the term) or variable (based on market rates).
Are there any restrictions for non-residents buying property in Canada?
Non-residents can buy property in Canada. However, they might face higher property transfer taxes or additional taxes, especially in places like British Columbia. Non-residents should also be aware of potential tax implications in their home country when owning foreign real estate.