Buying a home can definitely be an overwhelming and exhausting procedure. It takes up a lot of you to figure out finally a house that you can make a home out of and actually afford it. There are many ways to look to buy a home in Canada, and one can have subjective particulars when it comes to affording them. Some opt for loans, some save, and some banks on mortgages. Every option has its pros and cons, just like every coin has two sides. Before making any hardcore decisions, a professional opinion should be taken into consideration. However, to ease your life, we are here with a comprehensive list of affordable housing/property options for new home buyers. Keep scrolling to know more.
Buy an Abode in the Heart of Canada
Before making any decision or deciding upon a home, one needs to do thorough market research and figure out which method would be the most beneficial to buy a home. Home buying can be an overwhelming process, especially when you are a first time home buyer in Canada. So, let’s begin with the process of buying a house. Have a glance!
If you are a first time home buyer in Canada, applying basic cost-cutting techniques becomes viable, including looking for co-living spaces and getting a roommate and finding a house within your budget. But all these might suffer the drawback of paying rent monthly, which might affect the state of your costs. On the other hand, buying a home would be like a one-time investment, and would relieve you from the renting costs.
Buying a Property in Canada as an Outsider
Although the country doesn’t have any policies regarding the non-residents for buying a property in Canada, there are a few areas in Ontario, where a non-resident is under a 15% non-resident speculation tax which is implemented on any property purchase with additional interest.
Types of Properties to Look out to Buy a Home in Canada
There are many viable properties that can be purchased, considering all the possible factors that a buyer needs to consider before buying a home. One of the considerations includes the type of properties one might be looking for:
If you are going ahead to buy a condo, then you need to know that this type of housing is found in apartments and townhouses. Although, while going with this option, one must also know that while buying a condo, the owner owns the unit, and not the surrounding area and the common spaces. These services might be variable, but to avail them, you would have to pay a condo fee. This is one of the affordable options, and what immigrants usually consider buying.
This one is basically a stand-alone property and is the most expensive because of the cost of the land. Yes, you guessed it right, you own both the home and the land.
Having this option can be a good idea when you are looking for raising a family where the homeowners are responsible for all the utilities, maintenance, and their own private space.
This type of housing includes an abode that is attached on one side, and the owner is responsible for the land as well as the unit. These units are quite less expensive as compared to the detached house. So, they can be one of the affordable options for a family who is willing to shift to Canada and are planning to buy a home in Canada.
A series of houses attached to each other, something that looks like a row-housing and has neighbours around.
This type of property usually has a building divided into two or three units where a buyer would buy the entire place and then rent it out separately. Each unit has its own entrance and has to take care of its own unit.
Canadian House Prices
According to the data collected in the year 2018, the west coast of Vancouver, British Columbia offer properties at the most expensive rates, while places like Manitoba and Prince Edward Island offer the properties at economical rates.
The average house price in Canada is around 495,000 CAD (372,403 USD). The following table mentions the basic prices on the basis of cities and the provinces:
|City||Average cost of the House (CAD)- USD|
|Toronto||766,000 (576,292 USD)|
|Ottawa||382,000 (287,394 USD)|
|Halifax||316,000 (237,698 USD)|
|Vancouver||1,092,000 (821,555 USD)|
|Regina||276,000 (297,610 USD)|
|Montreal||341,000 (256,548 USD)|
|Fredericton||173,000 (130,132 USD)|
|Calgary||431,000 (324,259 USD)|
|Province||Average cost of the House (CAD)- USD|
|Quebec||297,000 (223,453 USD)|
|Ontario||578,000 (434,777 USD)|
|Manitoba||296,000 (222,702 USD)|
|Prince Edward Island||230,000 (173,045 USD)|
|Alberta||387,000 (291,167 USD)|
|New Brunswick||178,000 (133,922 USD)|
|British Columbia||730,000 (549,113 USD)|
|Newfoundland and Labrador||246,000 (185,032 USD)|
|Saskatchewan||288,000 (216,683 USD)|
|Nova Scotia||249,000 (187,340 USD)|
Steps to Buying a House
The process of buying a home can be overwhelming and it takes a lot of research and cross-checks to figure out a property that can be competent enough for you. This part of the piece can help you figure out what are the basic steps to buying a house:
The One that Fits- Before buy a home in Canada, you need to analyse and choose a house that fits all your needs which includes considering the climate, the locality, the neighbourhood, and other personal factors.
Go through multiple sources and listings offline and online in order to open windows to options and choose the one that literally fits all your needs.
Choosing a realtor can also be one of the options, as they can help you find the home that suits your needs. They can actually help in mitigating stress and the most important help in finding the best deals.
Acquire a Reference Letter- You would be needing a reference letter from an authority like your bank, or an employment letter mentioning your Canadian income along with your down payment.
Non-residents require a down payment of 35% in cash and mortgage is offered as 65% of the house’s value. Getting qualified beforehand for a mortgage is also an important step.
Experience Matters- Make sure that the house attracts you in person and is a competent home and makes you like one. Focus a little bit of your energy on the dynamics with the realtor and make sure that he takes all your pointers into consideration and finds you the best home.
Making of the Agreement- Once you choose your home, the realtor would help you prepare an agreement and a purchase agreement which has to be signed later in order to finalize the deal.
The realtor would have a real estate lawyer draw the property registration, balance out the transactions, etc.
Wait for possession day and move into your new home!
The above-mentioned pointers are the basic steps to buying a home and should be thoroughly studied and re-checked and understood before actually moving in.
Requirements for Buying a Home in Canada
- If any expatriate wants to buy a home in Canada or is planning to live there for more than a period of six months, the candidate might require to apply for immigration status.
- Home insurance is also required for getting a mortgage and this is something that can be difficult for non-residents to obtain.
In a Nutshell
Buying a house can definitely be something that can not only overwhelm you but also consume time, mental and physical strength. This was just an attempt to help you make it all worth it. Make sure to do thorough research, your priorities and choices, and make a rational decision about your future home.
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Frequently Asked Questions (FAQs)
According to the survey conducted in the year 2021, an average detached house costs around 688,208 USD with a down payment of 43,821 USD and a household income of 109,000 USD in order to buy it.
Yes, a US citizen can buy a house in Canada.
When it comes to Canada, any sort of minimum investment can get you citizenship for 400,000 Canadian dollars.
Yes, Canadian law allows you to keep two or more citizenships. Although, other countries might take away your citizenship if you become a Canadian.