Congratulations On Your First Home! A Helpful Q&A for First Time Buyers
When a purchaser is buying a property from a non-resident seller, the Federal Income Tax Act states at section 116 that the purchaser may have to pay taxes of 25% (or in some instances as much as 50%) of the purchase price. The concept itself is not unusual - the tax is intended to ensure that the government is not denied tax revenues on the sale of a property simply because the previous owner did not reside in Canada.
Know Before You Borrow: An Overview of CMHC’s Latest Rule Changes
… the Canadian Mortgage and Housing Corporation, which is the primary insurer of mortgages in Canada, has stringent rules to ensure Canadians are not borrowing more than they can afford. Now, in the wake of this year’s economic uncertainty, they have tightened those rules even further.