Buying Guide: Canada

Raw aesthetic beauty is immediately apparent in this vast land, complete with glassy lakes, snow capped mountains and rolling hills. Canada is an outdoor lover’s paradise, whether its summer or winter there’s always something to keep one amused

Country Overview

Population: 33,487,208 (July 2009 EST.)
Capital city: Ottawa
Major cities: Toronto, Calgary, Vancouver, Quebec, Montreal
Language: French and English
Climate: varies from temperate in south to sub arctic and arctic in north

Location: Northern North America, bordering the North Atlantic Ocean on the east, North Pacific Ocean on the west, and the Arctic Ocean on the north, north of USA

Economy
GDP (official exchange rate):  $1.564 trillion (2008 est)
GDP (purchasing power parity):  $1.307 Trillion (2008 est)
GDP (real) growth rate: 0.6 percent (2008 EST.)

Canada’s economy thrives mainly on its natural resources such as oil, mining, forestry, gas extraction, farming and fishing. These particulars are all very important for the jobs and exports market. Canada is also a world leader in telecommunications, biotechnology, aerospace technologies and pharmaceuticals.

This affluent high technology industrial society is a world contender in the trillion dollar class. The standards of living are high and the market orientated economic system and production pattern matches that of the USA.

Cosmopolitan cities, extreme winter sporting destinations, superb panoramas year round and a slow pace of life that is famed worldwide. With only a five hour flight time to Canada’s nearest point (Newfoundland) from the UK, it seems an obvious choice.

Canada stands proud as the second largest country in the world, 10million sq m to be exact, and it’s not only its geographic state that is impressive. No matter what you are looking for in Canada it will be magnified from its gigantic mountain peaks to the hulking glaciers – even the wildlife that roams here is super sized – grizzly bears, moose, polar bears and humpback whales.

Festival packed cities such as Toronto; North America’s oldest city, St Johns; the cloud skimming heights of Banff and Jasper; the endless flat plains of Saskatchewan – it really is hard to find a reason to dislike this place.

Canada has withstood the current property slump worldwide and forecasts suggest that it will not fall prey to the credit crisis as much as the USA has. Excellent access routes from the UK, with so much to discover, fairly priced property which is on a gradual annual increase leaves Canada a true contender and something for Brits to think about when choosing a holiday home abroad.

Main property markets

Canada’s main property markets are generally based in and around the cities. Some 80 percent live within 250m from the US border.

Forms of ownership
Canada has several types of ownership including freehold, condominiums and cooperatives.

Restrictions
There are no restrictions for non-nationals purchasing in Canada, however, the law and buying process can vary from province to province. Nova Scotia, British Columbia, New Brunswick, Newfoundland, Ontario and Quebec have no restrictions as long as you only stay in Canada for a maximum of six months in any one year, but in Banff, which is situated in a national park, only business and employees of the park can own property, and only on 42-year leaseholds.

How safe is it?
Buying in Canada is extremely well structured and ‘gazumping’ is almost unheard of. Buying in Canada is a regulated process which means you should be well protected throughout the sale. Given the low population compared with the high geographic area, buying off plan is a great way forward and a self builder’s paradise.

Mortgages
Canadian banks are just as keen to lend to foreign investors as they are to domestics buyers. There is a limit on what they will lend ($750.000) but this can be easily upped with proof of income and financial means.

The buying process
The buying process in Canada is not too dissimilar to that of the UK and Irish market. The country is broken up into five main regions with most of Canada’s population is centred on its towns and cities. Most tend to live within 250m from the US border. Relatively easy access and with more and more budget airlines now covering Canada, buying a house here has never been more appealing.

The use of a realtor and a private lawyer is always recommended. A realtor here generally covers a large area and thus gives buyers the best opportunity to look at a number of different regions in one go.

When searching for a property the best place to begin is on the internet and it’s very easy to obtain a lot of information over the web, however, it won’t replace actually visiting an area and getting a feel for it. The Canadian market has stayed relatively stable throughout the current worldwide credit crisis with property still rising at a steady rate. With no language barrier to contend with (even in Quebec most can and will communicate with you in English), a flight time of five hours (minimum) and one of the least populated developed countries, Canada really is a very good investment choice.

Choosing an area
Canada has a very diverse landscape, one minute you can be deep in the city the next you could be skiing your way through some of the most breathtakingly beautiful scenery. Lakes and mountains, or flat fertile plains, cities and villages whatever you are looking for, Canada, most definitely can provide. The problem is actually making that decision on where to live. To begin with, ask yourself why you are buying, the answer to this question will give you a great foundation as; if it’s a relocation, then factors such as lifestyle will come into play; if its purely for investment, then other factors such as rental potential will have to be considered.

Viewings
Realtors in Canada can provide a very comprehensive list of available properties within an area; meaning investors can choose to see a multitude of properties with one person. Once an area has been agreed on the next step is to pick a few properties to physically go and visit. Remember, the first viewing is about falling in love, the second and subsequent viewings are about practicalities. It always a good idea to take a tape measure and torch with you to shape up for furniture.

Legal representation
As in most countries, the estate agent works on behalf of the vendor, therefore, it is always advisable to employ the services of a lawyer that works solely on the buyer’s behalf.

The sale
Once you find your dream home in Canada, A financial offer can be made to the vendor via the hired agent. The estate agent is legally bound to submit your offer to the vendor whether or not it matches the asking price. If the vendor refuses the first offer then negotiations proceed until a purchase price is agreed, at which point both parties sign the ‘Offer to Purchase’ – also known as the ‘Agreement of Purchase & Sale’.

This is a preliminary contract and it is either ‘firm’ or ‘conditional’. A conditional preliminary contract usually contains terms relating to the successful securing of finance to buy or to the satisfactory completion of building surveys etc, and only becomes firm (binding) when all the conditions have been met. It is vital to have these terms in a conditional contract to ensure that if, for example a mortgage falls through for any reason, buyers get their deposit back.

A firm preliminary contract is not subject to any terms or conditions, therefore if it is broken by the buyer, they will forfeit any monies paid, and if broken by the vendor, then they may be liable for financial penalties. A deposit will be required when signing the Offer to Purchase, and the contract will contain a completion date.
When the completion date is reached and all conditions for the fulfilment of the contract have been met, the remainder of the purchase price together with all fees will be payable. Monies are paid to the vendor via the solicitor or notaire handling the legalities of the sale.  At this point both the purchaser and the vendor sign the ‘definitive contract’, called an ‘Acte de Vente’ in Quebec.