In the past year we have helped a number of clients purchase property in Toronto from abroad. Buying property in Toronto as a non resident is relatively straight forward.
Who Can Buy Real Estate In Toronto?
Canada is open for business and as such anyone can purchase any kind and any amount of real estate from anywhere. Banks, however, may limit the amount of properties they finance due to risk aversion.
Does Purchasing A Property In Toronto Help My Immigration Chances ?
Unfortunately owning property in the country is not taken into consideration. It doesn’t hurt your chances however and should be a factor in establishing your net worth.
I’m A Canadian Citizen Living In A Different Country. Would I Be Considered A Non-Resident?
The rules are very clear. If you are not resident in Canada for more than six months of the year the same rules apply to you as they do to other non-residents.
What If I’m A Non-Resident Who Wants To Buy Property With A Resident?
You will still be considered a non-resident and the same rules will apply.
Can A Non-Resident Get A Mortgage To Purchase A House In Toronto?
As long as you are able to provide a 35% down payment (a Federal requirement) you can apply for financing on the remaining 65%.
How Do I Qualify For Financing As A Non-Resident?
Non-residents will generally need a minimum 35% down payment, a letter of reference from their bank, a letter of employment verifying income in Canadian or US dollars, three months of bank statements and a Canadian credit check.
What About Interest Rates?
You will be eligible for the same interest rates as Canadians.
Will Canadian Banks Consider Rental Income As Part Of My Income?
Most lenders will only consider rental income from Canadian properties. Income from properties outside Canada will not be considered as a qualifying factor for a Canadian mortgage.
How Does The Deposit Work?
We recommend opening a Canadian bank account to have the deposit ready when you start your search. When you make an offer on a property in Toronto you’ll need to provide a deposit. It is commonly around 5% of the purchase price and payable within 24 hours.
How Do I Find A Mortgage Broker Who Can Help Non-Residents Buy Property In Toronto?
We have long term relationship with experienced mortgage brokers, home inspectors, lawyers and insurance agents. They would be happy to assist you in the decision process.
What Kinds Of Closing Costs Should I Expect To Pay?
You will pay the same closing costs as Canadian residents – land transfer taxes and legal fees.
I Don’t Need A Mortgage. How Do I Pay For The Property?
If you have 100% of the funds in cash you don't have to get a mortgage. That money would need to be transferred to your lawyer's trust account before closing on the property.
Do I Need To Come To Canada To Search For A Property?
If you don't need a mortgage, which means you pay 100% cash then you don't have to come. We’ve helped many non-resident Buyers buy property while they were overseas. We use video, live walk throughs and interactive online tours. Many of our non-residents also choose to have a family member of friend living in Canada assist with the home search process. If you are going to need a mortgage, you’ll need to have a Canadian bank account – Canadian banks will require you to come to Canada to open a bank account. Note there are some exceptions to this (for example, we’ve had clients with HSBC accounts able to get a mortgage without coming to Canada).
If I Buy An Investment Property, Can You Find Tenants For It And Manage It For Me?
We’ve helped many landlords find tenants for their properties.
How Do I Sign The Offer Paperwork?
Paperwork can be signed either the old way: scan and email; or the new way: electronic signatures with either a tablet or smartphone. Both are legal.
Realbate Posts On The Net
The official blog of Realbate