How to Buy Real Estate in Canada

Canadians enjoy a high standard of living and a low cost of living, making Canada a popular country for immigrants. The real estate market remains inexpensive, although property values continue to rise. Now is a good time to invest in Canada, whether you're interested in relocating permanently or buying property to rent out indefinitely. Follow these steps before making your purchase.

Instructions

1. Visit Canada and decide where you'd like to buy. If you already have an idea, visit your area of interest and try to narrow your search. If not, study the geography of Canada on a map first. Decide if you'd prefer coastal areas along the Atlantic or Pacific; mountain provinces, such as Alberta, where energy-related jobs are plentiful; or the northern provinces, such as Saskatchewan, where the winters may be long and dark, but property values continue to rise.

2. Look into financing before you start looking for property. If sellers have reason to believe that you can secure financing, they may be more willing to negotiate a final sales price. In Canada, banks usually require at least 35 percent down on real estate, and the loan is amortized over 25 years. If you can't afford the payments, you won't get the loan. Credit is harder to get in Canada than in the US.

3. Find a real estate agent familiar with the market in the area you want to buy. You can find realtors on the Internet or in the phone book. Have your agent in place before you travel to Canada to start your search.

4. Negotiate purchase price and conditions to the sales contract (called "Offer to Purchase" or "Agreement of Purchase") through your realtor. Hiring a local attorney to review the contract and work for you through the closing is wise.

5. Submit all of the paperwork your financing bank needs to approve your mortgage in a timely manner. Schedule a closing.

6. Complete the transaction by signing all the paperwork and delivering the funds with a "notaire" or "solicitor." This person acts as a title company closer would in the US. Be prepared to pay transfer taxes, title insurance fees and mortgage-related fees up to 1 percent of the sales price in addition to your down payment.

Tips & Warnings

• Non-residents are allowed to stay in Canada for 6 months every year and can legally open bank accounts and buy cars.