After the big impact that the US elections has caused, people are looking at the possibility to move to the northern neighboring country. And with Trump’s presidential win, Canadian home sells are going up. Still wonder why? We could actually see a surge in demand for Canadian homes, says Soper. “Some [Americans] may be so fed-up that they decide to head north.”
If you are looking to the possibility to move to Canada, here is what you need to know about Canadian Real Estate:
Canada welcomes home buyers from all countries, and there are no restrictions on the amount or kind of real estate you can buy. Keep in mind that owning a property in Canada does not give you any immigration privileges and that if you want to live here, you’ll still need to qualify. under Canada’s Immigration Laws.
“While Canada’s mortgage rates are enticing, you really need to concentrate on the tax and insurance implications” –Romana King, MoneySense
Canada mortgages are low. However, it is advisable to take out a loan in the US, because most Canadian mortgage lenders will require a minimum of 35% down to even qualify for a mortgage loan on a Canadian property, sometimes more.
Get professional tax advice. When buying a property in Toronto, foreign buyers pay the same land transfer taxes as Canadian residents. First time home buyers who plan to use the purchase as their primary residence may be eligible for land transfer tax rebates.
Get Home Insurance. Whether you get a U.S. loan to buy the property or a Canadian mortgage, you’ll probably be required to purchase home insurance on the Muskoka cottage. In Canada, mortgage lenders make it mandatory for borrowers to purchase home insurance—oftentimes requiring a Letter of Proof from your insurance company before funds are forwarded for use.
Impact on house prices across Canada is uncertain
The impact of Trump’s election doesn’t stop there. Pre-election promises to place massive tariffs on Chinese imported goods and to “tear-up NAFTA” could mean trading-wars that could seriously impede Canada’s currently slow-growing economy.
In relative terms, trade is much more important to Canada than to the United States. The Americans can afford to be insular since they have 325 million people in their market to our less than 35 million. “Any protectionist stance from the U.S. would do significant damage to Canada,” says Soper. And any hit in our slow-growing economy could further prolong our climb out of the ultra-low interest rate environment. Worse, it could prompt lay-offs in certain parts of the country, where exports and trade help shape the local economies. This will impact localized housing markets.
Think Alberta and low oil prices, and you get the picture. -Romana King