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The idea of buying a home in a new country can feel overwhelming. With changing laws and complex financial requirements, it’s easy to get confused. But can an international student buy a house in Canada? The simple answer is yes, but it is not as easy as it used to be.
Canada has some new rules you need to know about. This guide will help you understand them so you can see if buying a home is right for you.
Understanding Canada’s Foreign Buyer Ban
Canada has a law called the Prohibition on the Purchase of Residential Property by Non-Canadians Act. This law stops most people who are not Canadian citizens or permanent residents from buying a house for a while.
This might sound like a problem, but don't worry. The government made some special exceptions to this rule. It's important to understand issues like who pays the realtor fees and other nuances. International students like you might be able to use one of these exceptions.
Are You Eligible to Buy?
So, how can you be one of the lucky students who can buy a home? You can start by filling out a buyer's questionnaire to see where you stand. Here is what you need to do:
You must be studying in a program at a Designated Learning Institution (DLI).
You need to have filed your taxes in Canada for the last five years before you buy.
You must have been in Canada for at least 244 days in each of those five years.
The house you want to buy cannot cost more than $500,000.
You cannot have bought any other house in Canada before.
Navigating the Financials: Mortgages and Down Payments
Even if you meet all the rules, you still need to think about the money. Here are a few financial hurdles you can expect:
Bigger Down Payment: You will likely need a larger down payment than a Canadian resident. Most banks will ask you to pay for at least 35% of the home’s price upfront.
No Canadian Credit History: Since you are new to Canada, you might not have a credit history here. Lenders will want to see proof of your income and may look at your financial history from your home country.
Proof of Funds: Be ready to show documents that prove where your money comes from. This can include bank statements, scholarship letters, or proof of family support.
It's also important to understand the role of your real estate agent, for example, knowing the local regulations on whether a realtor can work for both the buyer and the seller.
A Step-By-Step Home Buying Process
If you meet the rules and have your finances ready, what happens next? Here is a simple guide to the process.
Confirm Your Eligibility: Before you do anything else, double-check that you meet all the student exception rules.
Get Mortgage Pre-Approval: Talk to a bank or mortgage broker to see how much you can borrow. This shows sellers that you are a serious buyer, whether you're looking for a condo or an acreage for sale in Langley.
Find a Real Estate Professional: It is smart to work with a realtor who knows the rules for international buyers. A team like The Valley Life can help guide you through the market.
Search for Properties: This is the fun part! You can look for a home that fits your needs. Maybe it's a small place near your school or even a property with more space, like an acreage for sale in the Fraser Valley.
Make an Offer and Close the Deal: Your realtor will help you make an offer. If the seller accepts, you will sign papers to make the house yours.
Conclusion
So, can an international student buy a house in Canada? Yes, it is possible if you meet very specific conditions. You have to follow the rules of the foreign buyer ban and be ready for the financial side of things.
Buying a home is a huge decision. Make sure you do your homework and get good advice to help you on yourhome-buying journey.