Buying a House in Montreal

There are many reasons an increasing number of foreigners are choosing Montreal as their new home. The city boasts an excellent quality of life, with a vibrant nightlife, cheap public transit, plenty of high-end restaurants, and major festivals and international events all year long. The best part about the Montreal real estate market is its affordability relative to other major Canadian population centers.

If you have already decided on moving to Montreal, you are probably wondering how to buy a house in the city. In this article, we will demystify the purchase process and outline the steps involved in buying a house in Montreal.

Can Foreigners Buy a House in Montreal?

Like most open economies, Canada imposes very few restrictions on foreigners who want to buy property in Quebec. As with Canadian citizens, the buying process for individuals who are neither citizens nor permanent residents of Canada is fairly straightforward and involves simple steps.

One significant difference that is worth noting is the mortgage requirements — most lenders and mortgage brokers require foreigners to put up a minimum down payment of at least 35% of the home price.

The absence of a tax on foreign real estate buyers is another major advantage that Montreal offers over other Canadian cities. Unlike cities like Toronto and Vancouver, foreign homebuyers in Montreal are not subject to the Non-Resident Speculation Tax (NRST).

The Process of Buying a Montreal Home

As a foreigner, getting into the Canadian real estate market may seem like a daunting and stressful experience. This is more so the case for first-time buyers. However, purchasing property in Montreal is simple and involves a few straightforward steps. Below is a breakdown of the steps to becoming a Montreal homeowner.

What to Consider When Buying a Home in Canada

Purchasing a home in Montreal will be a different experience for everyone. If you are not a real-estate investor or have limited experience purchasing residential properties overseas, it will also depend on what you are normally used to in your home-country. In addition to some of the above items, you should also consider the following when buying a home in Canada:

Get Your Montreal House Appraised

Most lenders require the buyer to carry out a home appraisal. This helps them determine the true value of the property and protects their investment in case the borrower defaults on the mortgage.

Retaining the services of a home appraisal company offers many benefits to the buyer, as well. Determining the actual market value of the property prevents you from overpaying for the home and gives you a chance to negotiate the house price. Additionally, a home appraisal ensures you will pay the right amount of property taxes.

Conduct a Home Inspection

As part of your due diligence, be sure to inspect the home before submitting an offer. A thorough inspection of the property may reveal significant damage or structural issues that might require costly repairs. Not only can a home inspection save thousands of dollars in repair bills down the line, but it will also allow you to negotiate a lower price when making your offer.

There are many companies that offer home inspection services in Montreal. The cost of the service varies depending on the property type (such as a single-family home, triplex, or townhouse).

Hire a Montreal Notary

As the buyer, you are tasked with hiring the notary who will oversee the transaction. As part of their tasks, the notary will review all the documents to ensure everything is in order and carry out a title search to make sure that there are no liens on the property. The notary will also handle the exchange of funds between the two parties and organize mortgage documents with the lender.

Make an Offer on Your Montreal House

Once you have secured your financing and performed both an appraisal and inspection of the house, it is time to submit an offer. Having your mortgage pre-approval in hand coupled with the diligent work of your real estate broker will help you get your offer accepted without too much hassle.

Move Into Your Montreal House

After finalizing the purchase, all that is left is moving into your new home. It is important to note that homeownership alone does not grant you the right to stay in Quebec indefinitely. You have to sort out your immigration status or renew your tourist visa.

The most common way to get permanent residency in Quebec is to apply through the Regular Skilled Worker Program (RSWP). If your work experience, language proficiency, and family status match the program’s criteria, you will receive an invitation to submit a permanent selection application.

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