Buying Property in Canada?
Great info about buying Canadian property!

Canada is a particularly developed country and, as such, the property purchasing process is well regulated, straightforward and secure, which is a particularly attractive factor for foreign investors.

As with almost any property purchase, one of the first things that should be dealt with is the way in which the property purchase is going to be financed. In Canada, as is the case in the United Kingdom, there is an option to obtain ‘pre-approval’ for financing. This simply tells you that, based on your financial situation, you are able to afford X dollars towards a property. Of course, this remains dependent on the property of your choice providing sufficient security for the lender. But, it does allow you a good guideline as to the types of properties that you can look at based on your budget.

Buying Property in Canada - The How To....

In addition to the actual cost of the property, the following fees and charges should also be taken into consideration:

• a deposit of 5 percent is payable when the offer is accepted;
• a payment of 25 percent is then needed as a further deposit (although this is adjusted to take the 5 percent that you have already paid into account);
• fees that are payable to the lender for appraising the property;
• any mortgage insurance or fees that are due;
• legal fees;
• home and title insurance;
• the cost of any survey;
• a prepaid property tax refund that may be due to the current owners;
• registration fees for the land and deeds; and
• an estoppel certificate fee.

One thing that is really worth bearing in mind is that real estate agents in Canada are very different from the agents found in the UK. In Canada, all agents are licensed and in most cases they work exclusively for the buyer and NOT the seller.

Another vital individual in the Canadian property purchase market is the lawyer, or if you are buying in Quebec this will be a notary. Their role is to ensure that you, as the purchaser, are legally protected and that your property interest is maintained throughout the process.

Unlike in the UK, as a purchaser, you will employ a real estate agent to find your perfect property, based on your requirements. Once a property has been found, the purchaser will submit a document commonly titled ‘Offer to Purchase’. This document is a legal document and lays out the amount that you are prepared to pay as well as any additional terms such as date of completion and the amount of deposit you are prepared to pay.

After the document has gone back and forth and is finally agreed, both parties sign and the deposit is paid in full. Several weeks later (commonly approximately two weeks), the remainder of the price is paid and the ‘closing’ of the purchase is completed with the registration of the property in the new owner’s name.

You are then the proud owner of your new Canadian property!