Guys, if I have a rented property in my home country, am I going to pay tax on that to the Canadain government. In addition, can I have a mortgage based on this rent if I can prove this with legal paperwork. I will land in Canada this July and I want to buy a house as quickly as possible to avoid renting for long periods of time. Note that I may not have ajob for sometime!
Rented property in home country
- Thread starter Abdu
- Start date
toby
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- Sep 29, 2009
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Abdu said:
(1)Yes, that is part of your worldwide income, hence taxable. If you pay tax on that rental income on your home country, then there are ways to reduce the tax payable in Canada.
(2) I don't think a bank in Canada will lend you mortgage money on a house abroad; too difficult to possess the house if you were to default on mortgage payments in Canada. And, of course,not having employment income will make getting a mortgage more difficult, if not impossible.
Waiting to buy a house may be a good idea anyway. It would give you time to check out different neighbourhoods, give you flexibility to accept a job in a different city (and not have to sell a Canadian house), and generally make a better choice of house in Canada. Also, if there is truth to the predictions that housing prices may decline in Canada in the next year or two, that would work in your favour.
