International students buying property in Toronto Mississauga
Rules for Parents of International students buying property in Canada
Few gifts increase in value year after year! The gift of a home in Toronto Mississauga can be one of them. Increasingly, parents recognize the value of investing in real estate for their children over anything else. In most cases, these children are college or university students. It’s the biggest blessing they could get from their parents. The young adults are spared the hassle of paying rent or staying in substandard accommodation such as basement apartments or paying exorbitant rent for small one bedrooms in Greater Toronto Area, while the parents enjoy peace of mind knowing that their children are secure, both financially and emotionally.
Many overseas parents consider buying a home for their children who are living and studying in Canada
Many students tend to study outside their country of residence which requires them to live and fend on their own. At such times, a home of their own addresses half the challenges. With a major part of their lifestyle looked after, they can settle in faster to focus more on education, rather than get weighed down by rental expenses and inconveniences.
With this trend increasingly on the rise, developers in Toronto and Mississauga real estate market have taken the initiative to build condos that are tailor-made for students and those starting out in life. These properties are fitted with the best amenities and located conveniently for commuting ease.
Non-resident foreign students end up paying almost three times the amount in tuition fees as compared to local Canadian residents. These young adults start out by spending four to six years studying in Canada. Then they move on to enter the workforce on a work permit and go on to become Canadian residents if they so desire. It is a good decision to consider property investment and prepare children for a secure, financially sound future by planning well in advance.
The Canadian real estate market has been rated as one of the best in the world. While international buyers can purchase a property in Canada, there are certain rules and guidelines.
Team Kalia helps parents of international students buy property in Toronto Mississauga and nearby areas.
International buyers (overseas parents of students studying in Canada) can either buy a property in cash or secure up to 50% to 60% loan from Canadian lenders secured against the property.
The mortgage approval is based on their parents’ income earned in their respective country. We can put you in touch with top banks for mortgage approval. Parents must have a bank account in Canada for this process.
On top of this, 20% non-resident speculative tax has to be paid. This amount can be claimed back based on the rules.
Another option is to buy a pre-construction condo from a reputed builder. Most builder projects take 2 to 4 years to complete. This way, parents can buy a property on easy instalments spread over 12 to 18 months. Builders require buyers to come up with 15% to 20% down payment within the first year. The balance can be paid upon completion. Or in other words, you will have 3 to 4 years to pay the full amount (i.e.; buy in all cash or get a loan approval, as explained above).
Is there any better gift for your child?