What are the extra charges involved in purchasing a property by foreigners?

Answer No. 1
Being a foreigner, if I want to buy a property in Canada, the first thing I would do is visit a real estate broker near me to understand the process as it is much more complicated than any other country.  There are a lot of taxes and fees involved which are called “Closing Costs”. In a property deal in Canada, it is not just the seller and buyer who are involved in the process, you will need to hire a real estate broker, a real estate lawyer, a home inspector, a lender (if you are not buying in cash) and an insurance broker. Naturally, you need to pay their fees and other charges. Also, in Canada, there a lot of taxes involved in buying a property.

Answer No. 2
The charges involved in purchasing a property in Canada are almost the same for a resident and non-resident. The difference lies only in the downpayment paid to the bank for mortgaging.  Apart from the cost of property, other charges involved in purchasing a property would be land transfer taxes, municipal property taxes, capital gain taxes (if you sell the property), legal fees, title insurance, mortgage broker commission (if applicable), property survey, property tax adjustments, HST for newly constructed condos and houses, Tarion warranty fees, provincial sales tax only for new constructions and adjustment for utilities and fees paid by the seller in advance.

Answer No. 3
In Canada, it is very difficult for a foreigner to buy a property without going to a real estate broker near you.  A real estate broker would help you understand the costs involved in buying a property in Canada. Canada is a very tax-friendly nation and hence there are many types of taxes involved, like land transfer, property, capital gains, municipal taxes, etc.  Then, there are also some other fees involved which in the real-estate terms are called closing costs. These costs are to be paid while closing the deal. These include a variety of fees and insurances and any utilities prepaid by the seller.

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