Buying a Residence in Quebec as a Non-Citizen or Non-Resident

Buying a residence in Quebec as a non-citizen or non-resident can be an excellent opportunity for investment and stability. However, following recent legislative changes, it is crucial to understand each step of the process to successfully carry out your real estate project. In this article, we will discuss the legal restrictions, the specific taxes for non-citizens, the financing conditions, the role and benefits of working with a real estate broker, and the essential steps to purchase a residence in Quebec. We will also offer practical tips and a FAQ to answer the most common questions.

Index

• 1. Legal restrictions and exceptions (Prohibition on the Purchase of Residential Property)
• 2. Taxes and fees for non-citizens in Quebec
• 3. Financing for a non-citizen: what you need to know
• 4. Why hire a real estate broker?
• 5. Essential steps to successfully complete your purchase
• 6. Practical tips for non-citizens
• Conclusion: an accessible project with proper preparation
• FAQ: Your frequently asked questions

1. Legal restrictions and exceptions (Prohibition on the Purchase of Residential Property)

Since January 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act limits access to certain properties for non-citizens. Despite these restrictions, there are several exceptions that still allow you to acquire a residence in Quebec as a non-resident:

• Temporary residents: Holders of a valid work permit can buy a property, subject to certain conditions (permit duration, intention to reside, etc.).
• International students: If they meet specific criteria, such as the length of their studies and the status of their permit, they can be exempt from the prohibition.
• Rural areas: Some properties located outside major urban centers or in rural zones may remain accessible, since the law primarily targets high-density areas.

➡ Learn more: See the official details of the law.

For a quick overview of the different exceptions and the required criteria, here is a summary table:

2. Taxes and fees for non-citizens in Quebec

When buying property in Quebec as a non-citizen, you must anticipate several additional fees. Beyond the cost of the property itself, plan for:

• Real estate transfer duties (often referred to as the “welcome tax”): Mandatory for all buyers, these duties vary according to the property’s value and the municipality.
• Foreign buyer tax: Although rare and limited to specific regions (e.g., Vancouver in other provinces), it is important to verify whether this tax applies based on the exact location of the residence in Quebec.
• Notary fees: Notarial services are essential to validate the deed of sale. Costs may differ from one notary to another.
• Inspection fees: A professional inspection is strongly recommended to assess the building’s condition and negotiate the price if repairs are necessary.

💡 Tip: Check out this guide on purchase costs for better financial planning and to avoid any unpleasant surprises regarding hidden fees and taxes.

3. Financing for a non-citizen: what you need to know

Obtaining a mortgage in Canada as a non-citizen is possible, but the conditions are often more stringent. Financial institutions want to ensure the borrower’s stability, particularly given the possibility of leaving the country. Here’s what you need to keep in mind:

• Higher down payment: It is usually at least 35% of the purchase price. Banks view this requirement as a sign of financial security.
• Proof of income: Providing documentation of stable income or substantial financial assets reassures the bank of your repayment ability.
• Credit history: Some banks may require a valid credit history in Canada or internationally to assess your reliability as a borrower.

➡ For more details: read this article on mortgages for non-residents. You’ll find information on the documents to provide and the necessary steps to complete your application.

4. Why hire a real estate broker?

There are many advantages to working with a real estate broker for a residence purchase in Quebec by a non-citizen. Indeed, the Quebec real estate market has specific legislative and cultural features that can confuse a foreign buyer. Here’s why a real estate broker can be a valuable asset:

• Knowledge of local laws: A broker is constantly trained on new laws and restrictions, including the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
• Targeted property search: They find properties matching your requirements and complying with current regulations, saving you precious time.
• Negotiation and protection: The broker represents your interests during transactions, reducing the risk of costly mistakes and negotiating the best terms.

💡 Tip: Discover our services for buyers for comprehensive support suited to your situation, whether you are an international student or a temporary worker in Quebec.

If you would like to learn more about the home-buying process in Quebec and the steps involved, feel free to check out our dedicated page on our website to better prepare for each stage of your real estate project.

5. Essential steps to successfully complete your purchase

Before signing any document, it is important to plan your approach to ensure you meet all legal and financial requirements. Here is an overview of the key steps:

1. Property search: Determine your needs (type of residence, budget, location) and focus on regions exempt from restrictions if you are subject to them. Use online platforms or your real estate broker’s expertise.
2. Offer to purchase: As soon as you find the ideal residence, submit a formal offer, along with a deposit (often called a “good faith deposit”). This amount protects the seller in the event of an unjustified withdrawal.
3. Checks and conditions: The offer to purchase may include certain conditions, such as an inspection, securing mortgage financing, or reviewing legal documents (certificate of location, zoning, etc.).
4. Closing at the notary’s office: Once all conditions are met, you sign the deed of sale before a notary. This is when you transfer the necessary funds and the property officially becomes yours.

➡ Check out this practical CMHC guide for detailed advice on each step and the documents you need to gather.

For more specific information on closing transactions and notary fees in Quebec, you can visit this Centris blog dedicated to notary fees in Quebec to best prepare your file.

6. Practical tips for non-citizens

Mistakes made during a residential purchase in Quebec can be costly, especially when you are a non-citizen and unfamiliar with the rules. To avoid unpleasant surprises:

• Anticipate taxes: Don’t forget to include real estate transfer duties and any specific foreign buyer taxes in your budget, even though they are rare in Quebec.
• Research local laws: Before signing a contract, check the municipal and provincial regulations that may restrict your purchase.
• Seek professional advice: Beyond a real estate broker, the help of a lawyer specializing in real estate and a financial advisor will secure each step of the transaction.
• Compare multiple financial institutions: Mortgage rates and down payment requirements vary from one bank to another. Conducting a comparison can save you thousands of dollars.

Additionally, check out my other blogs on real estate to benefit from a personalized approach tailored to your profile.

Conclusion: an accessible project with proper preparation

Despite the legal restrictions and stricter financing requirements, buying a residence in Quebec as a non-citizen is entirely feasible. With careful planning, knowledge of laws and taxes, and appropriate professional guidance, you can confidently carry out your real estate project. Whether you are an international student, a temporary worker, or simply seeking an investment, the Quebec market offers numerous opportunities.

Plan your budget, surround yourself with experts, and stay informed about legislative changes so you can see your transaction through to success.

FAQ: Your frequently asked questions

1. 1. Can a non-citizen buy property anywhere in Quebec?
   It depends on the exceptions set out by the law. Some urban areas may have restrictions, while rural regions remain more accessible.
2. 2. What is the required down payment for a non-resident mortgage?
   It typically ranges from 35% to 50%, depending on the applicant’s profile, income, and the financial institution.
3. 3. Does a foreign buyer tax apply in Quebec?
   Currently, there is no specific provincial tax for foreign buyers in Quebec, unlike in certain other provinces. However, always check with local authorities.
4. 4. How much are real estate transfer duties?
   Transfer duties depend on the property value and the municipality. They are often calculated on a progressive scale (e.g., 0.5% for the first bracket, then 1%, etc.).
5. 5. When should I contact a notary?
   The notary generally gets involved at the closing stage to draft and witness the deed of sale. However, you may consult them earlier for legal issues.
6. 6. Do I need a lawyer specializing in real estate?
   Although not mandatory, a specialized real estate lawyer or a financial advisor can help you avoid potential mistakes, especially if you are unfamiliar with the Quebec system.

For any other questions, feel free to contact us directly or via our form for personalized assistance.