Updated: Feb 29
Some people might say that being a homestay provider to international students, posting information for foreign students about buying a home is probably the least ideal blog I can post on my Homestay site. But I think that as long as you’re posting something that can be helpful to someone, the post is still in itself a good one.
So when one of our homestay students asked me how he can buy a house in Canada, the first thing I wondered about was whether a foreign student is even allowed to do so in the first place. But as I soon discovered, there’s actually not a lot of restrictions for foreigners when it comes to buying a property in Canada. In fact, it just dawned on me that these wealthy foreigners are most likely one of the major culprits of how or why real estate prices have been driven to a crazy high --- making houses no longer affordable to ordinary Canadians. Read here why I said that.
One notable restriction on foreigners to buying a house in Canada is the larger down payment which is at least 35% of the price --- compared to 5% - 20% which is common to Canadian residents. Other than that, the rest of the requirements are pretty much the same as with Canadians. But only if the foreigner actually has a reliable monthly income. Otherwise, he or she may not qualify for a mortgage with any traditional lenders also known as A Lenders such as banks and credit unions.
Foreigners who can't get a mortgage from A Lenders resort to dealing with B Lenders. And this is where things get a little bit tricky. In addition to the larger down payment of at least 35%, mortgage rates charged by B Lenders are typically higher. Also, a one-time lending fee may apply.
Read here to know more about A & B Lenders.
For those who do not have this kind of money yet, our homestay is here to accommodate you for the time being.
But for those who are ready, here are the steps in buying your first home courtesy of Homeownership.ca:
1. Build a Budget 2. Investigate Mortgage Options 3. Choose a Realtor 4. Get a Lawyer 5. House Hunting 6. Make the Offer 7. Home Inspection or New Home Warranty 8. Finalizing the Deal 9. Moving Preparations 10. Closing Day.
For more details about each of these steps, click here.