If you are European

Kasakondo-Immobilier-Belle-Ville

To invest in Quebec: What you need to know about buying or selling a property.

Unlike most European countries, real estate brokerage in Quebec works in collaborative mode. In Europe you may seek several agents for the marketing of a property that you wish to sell or to help you in finding one. This approach is useless in Quebec since that with the help of a single broker you will have access to all properties through the MLS portal/network which is the universal real estate database in Quebec. Your realtor will be able to present you all of the available properties that match your criteria. While marketing your property, a single brokerage contract will be required to ensure that your property is presented to the 14,000 real estate agents in Quebec as well as to any other potential buyer. Your property will also be available on all major Canadian real estate networks as soon as it will be online.

To make your life easier, Kasakondo+ team will refer you to one of our dedicated real estate agents working in the sector you are interested in and who’s qualifications and expertise will have been verified beforehand.

Can I get a mortgage loan for the acquisition of a property in Quebec? :

Regarding the purchase of a property by a foreign national, here are the rules to follow:

If your purchase requires a mortgage loan, you will need to take the necessary steps with a financial institution having an office in Quebec. You will be required to open a “current” bank account.

Your down payment shall cover at least 35% of the property’s value. This does not take into account any additional legal requirements that could require the financial institution in regard to your personal situation.

Ex.: You consider buying a condo in Montreal valued at CAN $400,000. The Bank will require that you deposit into your account a minimum of CAN $140,000 cash.

Can I BUY a property in cash only?

Yes.

However, you should be aware that in order to prevent money laundering and the financing of terrorism that the Canadian Government requires, for any amount beyond CAN $10,000 being transferred from a foreign country, that the buyer/investor must provide a document that clearly indicates the origin of the funds that will be used in this purchase. The notary that will officiate the signing of the deed of sale will have the task of making the said audit.

You will then have two options:

    • You can either open a current account in a financial institution that has a place of business in Quebec. In this case, a period of 30 days prior to any transaction will be required to allow the usual verification.

or

  • You can deposit the money directly to the notary’s ‘’In trust“ account. A minimum of 5-7 business days will be required to allow the usual verification.

Can I use a credit card to complete my down Payment?

No.

Since you will have to provide a proof of the origins of your down payment and that the latter must also be representative of your financial capacity, a credit card cannot be used in a real estate transaction.

Is a personal donation from my parents valid?

Yes.

However, you should be able to provide an official letter confirming the said gift/donation.

I would like to acquire a property in order to live in Quebec?

It is important not to confuse the rules applying to the purchase of a property to be used during your vacations or for the purpose of a real estate investment with the laws and regulations concerning immigration to Canada. While it is relatively easy to buy a property in Quebec or elsewhere in Canada as a foreign investor, doing so will in no way facilitate immigrating to Canada. If your goal is to immigrate, then you must absolutely start with communicating with all concerned authorities and validate your situation in regard to the present agreements between your country and the Canadian government before engaging in the search for properties.

What kinds of fees must I foresee?

While purchasing a property:

  • It is the buyer’s responsibility to pay the costs involved in the transfer of a property: all fees relating to the notary’s work in the transaction (deed of sale, mortgage agreement, title clearance, etc.):
  • The ’welcome tax’, based on the city’s assessment value of the property that is being purchased must be paid by the buyer. It is usually sent by the municipality during the weeks following the purchase of the said property.
  • In contrast to the province of British-Colombia, no surcharge is applied in Quebec to the purchase of a real estate property by a foreign national. This 15% tax is added to the purchase price and aims to calm the overheating of the city of Vancouver’s real estate market which is strongly supported by Asian investors. The province of Ontario currently considers the implementation of a similar tax.

While selling a property:

  • The seller is responsible for the discharge of any mortgage/hypothec made in his name and which affects the property that he is about to sell. The notary will ensure that they are erased and this, in preparation for the signing of the deed of sale, so that the titles provided by the seller are clear.
  • In the event that the seller is a foreign national or that he resides in Canada and that he plans to leave the country after the sale of his property, the notary shall withhold an amount from the sale’s residue to cover any claim related to the income taxes that would be due by the seller to the Government.
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