Refine Your Search

The Growth of Property for sale in Canada

The Canadian property market has entered a period of growth over the past 12 months with the average property price now standing at over CAD$320,000. Investors have been pouring money into Canadian property at a terrific rate over this period thus pushing up the market to its current level.

Canadian Properties have always remained a favourite for the British property buyer with its clean, fresh air, laid back lifestyle and strong, secure economy. Most people in Canada speak English and buying a home there is relatively straightforward. Prices of property in Canada tend to be cheaper than the UK and with the strength of the pound against the Canadian Dollar makes for a good investment opportunity for any investor.

Popular locations for buying properties in Canada include Quebec and British Columbia all with interesting properties and prices to tempt the investor and permanent resident.

Canada — Emigration

Canada presents a land of opportunities for millions of immigrants in this vast country. Indeed, when it comes to Canada, the word ‘immigration’ immediately crops up, like another name for the country! This is because historically, the native Canadians inhabiting this huge country were too few to optimally exploit the resources and development potential of the country.

The government thus, opted for the next best alternative of opening up its doors for immigrants from all over the world to work towards building a better, prosperous and vibrant nation. And the result is for all of us to see! Canada is today, a cherished destination for skilled professionals, semi-skilled individuals, unskilled workers, and real estate investors.

Specific steps to Buying Property in Canada

So if you have decided on emigrating to Canada and have found a property suitable for your needs then like most other countries all matters pertaining to the buying and the selling of property in Canada is subject to governmental regulation. Once the parties to a potential sale of property have agreed on a price (after negotiating between themselves), a preliminary contract is entered into between the parties. This preliminary contract is known either as an Offer to Purchase or as an Agreement of Purchase and Sale. At the time the preliminary agreement is entered into between the parties, a deposit is made by the buyer.

The preliminary agreement can take one of two forms. On the one hand, the preliminary agreement can be conditional. By conditional, it is meant that certain events need to occur or certain milestones accomplished before a contract can become firm. An example of such a conditional provision would be one to obtain financing. If the condition or conditions within the agreement cannot be satisfied for some reason, the buyer will receive most of their deposit back.

A firm preliminary contract is one in which there are no conditional provisions. If a firm preliminary agreement is not fulfilled, financial penalties can be imposed. For example, if the seller does not perform under the contract, he or she will lose the deposit paid. Likewise, some sort of financial penalty will be imposed on the buyer if they do not perform under the terms of the firm preliminary agreement.

Within the provisions of the preliminary agreement will be established a completion date. The completion date is when all of the conditions in the preliminary agreement need to met. It is at this point that the remainder of the purchase price will be paid by the buyer to the seller. (Obviously, the buyer will need to have his or her financing in place by this point in time.) It is at this juncture that the transfer of ownership of the property from the seller to the buyer will occur.

The money associated with the sale is paid whether through a solicitor or a notary. At this point the buyer and the seller will sign what is known as a Definitive Contract. In the French-speaking province of Quebec, this is called Acte de Vente. In Quebec, the final part of the sale is overseen by a notary who is a governmental official. In other provinces within Canada, a solicitor can oversee and handle the final steps of the sales transaction.

In that most people will require financing to purchase property in Canada, it is important to generally understand the lending process in the country. For the most part, mortgages in Canada are so-called full status arrangements. Full status means that the lender will make a thorough and complete investigation of a borrower’s background and credit history.

In Canada, a purchaser of real estate will have to pay about 35% of the total purchase price out of his or her pocket. In many instances, this will be the size of the deposit associated with the preliminary contract to purchase the property. The mortgage itself, in most cases, will be for a term of 25 years with the final payment needing to be made before the borrower reaches the age of 70.

Lenders in Canada pay very close attention to a borrower’s available income. Indeed, in most instances, a lender will closely analyze what a borrower will be expected to earn over the lifetime of the loan.

The mortgage loan itself will be secured by the property that is being purchased within Canada.

By understanding the ins and outs of the real estate purchase transactions in Canada, an investor will be in a far better position to make appropriate decisions pertaining to the buying and selling of property in that country.

Property Abroad always recommends using a Solicitor or Lawyer