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.
Seller Not There? Home Buyers Beware!
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.
Exploring All Options: When might a private mortgage be right for you?
In private mortgages, lending corporations (or occasionally wealthy individuals) will offer to finance a higher risk loan that major banks or credit unions would not. These often include second mortgages on a property (such as for renovations, repairs, or debt consolidation), mortgages for purchasers with unstable income or poor credit, or mortgages for purchasers looking to engage in complex investment transactions that banks are not keen to finance.