Relocating to Sherwood Park: Non‑Resident Buyer Basics

Relocating to Sherwood Park and buying as a non‑resident can feel complex. You may be juggling visas, timelines, and currency while trying to understand Toronto’s layered taxes and lender rules. This guide breaks down the essentials so you can budget accurately, choose the right team, and plan your move with confidence. You will learn the key taxes, financing options, banking steps, legal considerations, and a practical timeline to keep your purchase on track. Let’s dive in.

Non‑resident basics in Ontario

Buying in Toronto involves provincial and municipal rules that can affect non‑resident purchasers. Your residency and immigration status can influence taxes at purchase and your financing options. Definitions and exemptions are specific and can change, so verify your status and the latest guidance before drafting offers.

Taxes and transfer costs

NRST in the Greater Golden Horseshoe

Ontario’s Non‑Resident Speculation Tax (NRST) is a provincial surtax that can apply when a buyer is not a Canadian citizen or permanent resident and the property is within the Greater Golden Horseshoe, which includes Toronto. The rate is widely referenced at 25 percent of the purchase price, and it is in addition to regular land transfer taxes. Exemptions and rebates exist for certain buyers, such as new permanent residents or some temporary workers or students under specific conditions. Review eligibility and required timelines early so you can prepare documents in advance.

City of Toronto purchase costs

In Toronto, you pay the provincial Land Transfer Tax and the City of Toronto Municipal Land Transfer Tax at closing. These two taxes stack. Municipalities may also adopt their own non‑resident speculation taxes. Confirm with the City of Toronto whether any municipal non‑resident surcharge applies at the time you buy in Sherwood Park, since local measures can change.

Other closing‑day costs

Beyond taxes, plan for legal fees, title insurance, registry fees, home inspection, and adjustments for utilities and property taxes. If you buy through a corporation or trust, expect additional filings and possible tax implications. Discuss your structure with your lawyer before you submit an offer.

Mortgages for non‑residents

Down payment and insurance

Non‑resident borrowers usually have fewer mortgage options and stricter conditions. Mortgage default insurance programs often require the borrower to be a Canadian citizen or permanent resident. This is why many non‑residents need larger down payments. Market practice commonly ranges from 20 to 35 percent for uninsured mortgages, with exact thresholds set by each lender.

Terms and pricing

Expect that uninsured mortgages can come with higher interest rates and sometimes shorter amortizations. Some lenders may ask for a Canadian co‑signor or extra security depending on your profile and documentation.

Credit and documents

Lenders prefer Canadian credit history. If you do not have it, a lender may accept foreign credit references or a translated credit report. You will need proof of income, employment letters, bank statements, and tax returns. Translate and notarize documents as needed. Strong documentation helps offset a lack of Canadian credit.

Pre‑approvals and timing

Underwriting for non‑resident borrowers can take longer due to additional identity and anti‑money‑laundering reviews. Start pre‑approval 60 to 90 days before you plan to make an offer. Choose lenders that routinely work with temporary residents and cross‑border income so you receive clear guidance on down payment, amortization options, and acceptable documents.

Banking, funds, and AML checks

Open a Canadian account

Open a Canadian bank account before or soon after you arrive. Many banks allow you to start from abroad using a passport and supporting ID, but policies vary. Having a Canadian account simplifies deposits, pre‑authorized payments, and wires to your lawyer’s trust account at closing.

Proving and moving funds

Sellers, lawyers, and lenders expect clear proof of funds. Typical documents include certified bank statements, bank letters confirming balances, or paperwork showing proceeds from a property sale, inheritance, or securities liquidation. For international wires, your bank may request source‑of‑funds documentation. Prepare translations and notarizations where required.

Wire timing and holds

International wires typically take 2 to 5 business days to reach Canada. Large transfers can trigger additional reviews, which may add time. Build buffer days into your timeline. Funds must arrive in Canadian dollars and clear into your lawyer’s trust account per the law firm’s instructions. Confirm those instructions well in advance of closing.

Currency and tax planning

Consider foreign exchange risk when scheduling conversions. Some buyers use currency tools to lock in rates. If your funds or income come from other jurisdictions, speak with a tax advisor about cross‑border reporting and potential foreign exchange implications.

Legal and immigration planning

Hire the right real‑estate lawyer

Work with a lawyer who understands non‑resident purchases. They can advise on NRST eligibility, any municipal surcharge, how land transfer taxes are paid on closing, and what proof of identity and funds is required. They can also coordinate with your lender and guide the setup for trust account transfers.

Future sale considerations

If you later sell Canadian real property as a non‑resident, the buyer may be required to withhold a portion of the proceeds until a clearance certificate is issued by the Canada Revenue Agency. This can affect timing and net funds available for your next move. Plan ahead if you expect to sell property to fund a purchase in Toronto.

Transferee timeline overview

• 60 to 90 days before your offer:
  • Start mortgage pre‑approval with lenders experienced in non‑resident files.
  • Open a Canadian bank account if possible.
  • Gather passports, secondary ID, immigration documents, and proof of funds.
• 30 to 45 days before closing:
  • Confirm wire routes, currency conversion plans, and any bank limits.
  • If NRST might apply, check exemption or rebate eligibility and prepare materials.
  • Retain a Toronto real‑estate lawyer and advise them of any international transfers.
• 7 to 14 days before closing:
  • Ensure funds are sent or scheduled for a same‑day cleared arrival.
  • Provide any notarized or translated documents requested by your lender or lawyer.
  • Confirm the exact amount and method for land transfer taxes and any surcharges.
• Closing day:
  • Certified funds in the lawyer’s trust account as instructed.
  • Original passports or approved ID for any required in‑person signing.

Sherwood Park buyer checklist

• Confirm NRST applicability for your status and the Sherwood Park address. Review any available exemptions or rebates early.
• Check the City of Toronto’s current rules on Municipal Land Transfer Tax, plus any municipal non‑resident surtax if adopted.
• Start mortgage pre‑approval with lenders that accept foreign income and documentation.
• Open a Canadian bank account and set up online access, wire instructions, and daily transfer limits.
• Assemble identity and status documents: passport, secondary photo ID, work or study permit, or permanent resident confirmation.
• Document your funds and source of funds: bank statements, sale documents, employer relocation letters, or investment statements.
• Hire a Toronto real‑estate lawyer with non‑resident experience and advise them of international wires.
• Budget for legal fees, title insurance, registry fees, inspections, and adjustments.
• Build extra buffer time for wire transfers, AML checks, and document verifications.

Common pitfalls to avoid

• Waiting to confirm NRST or potential rebates until after the offer is firm.
• Assuming insured mortgages are available without checking your immigration status.
• Underestimating wire timeframes and AML holds, which can risk closing delays.
• Delaying the opening of a Canadian bank account and online access.
• Providing untranslated or uncertified documents that slow underwriting.

How New Chapter Homes helps

You deserve a smooth, well‑planned move into Sherwood Park. With local expertise in midtown Toronto and a concierge approach, you get clear guidance on timing, costs, and process. We coordinate with lenders and lawyers who understand non‑resident files, help you structure a strong offer, and source the right homes on and off market so you can act with confidence.

Ready to plan your Sherwood Park move? Connect with New Chapter Homes to map your timeline, assemble the right team, and secure the right home. Start your new chapter — Request a home valuation.

FAQs

What is the NRST for Sherwood Park in Toronto?

• The Non‑Resident Speculation Tax is a provincial surtax that can apply to non‑resident buyers purchasing in Toronto, and the widely referenced rate is 25 percent of the purchase price, subject to current provincial rules and any available exemptions or rebates.

Does Toronto charge a separate non‑resident tax?

• Toronto always charges a Municipal Land Transfer Tax in addition to the provincial Land Transfer Tax, and municipalities may adopt a separate non‑resident surtax, so you should verify the City of Toronto’s current measures before you buy.

How much down payment do non‑resident buyers need?

• Many lenders require larger down payments for non‑residents, commonly in the 20 to 35 percent range for uninsured mortgages, with exact amounts depending on the lender and your profile.

How long do international wires take for closing?

• International wires typically take 2 to 5 business days to arrive, and large transfers can face additional reviews, so plan extra buffer days before closing.

Do I need a Canadian bank account to buy in Toronto?

• It is strongly recommended to open a Canadian bank account to simplify deposits, wire transfers to your lawyer’s trust account, and ongoing payments after closing.

What documents do lenders ask for if I lack Canadian credit?

• Expect to provide foreign credit references or a translated credit report, plus proof of income, employment letters, bank statements, and tax returns, with translations and notarizations as needed.