One of the fastest changing markets has to be the real estate, and as we all know the real estate bubble is what caused the great crisis that happened in 2008. While banks did learn their lessons since then we can still argue that real estate is always changing and thus you should always do proper research before deciding if you are to buy or rent a house. This, of course, depends on the region you are living in and the current market prices – and not to forget your overall income.
Now, Canada is one of the best places to invest in real estate but you have to be aware of something – properties aren’t cheap. Still, it is a worthy investment especially if you plan to live there for at least few years and later, when and if you move out you can either continue renting it or sell it at an increased price to the next owner. One of the best cities to own a house in certainly in Toronto. Beautiful and vivid to live in, Toronto will give you a hell of a ride. And with people that aren’t citizens of Canada buying more properties, it is not hard to do that either. Of course, if you are a citizen of Canada you will be excluded from certain taxes.
Without further ado, let’s go ahead and take a look at the few things you should know when buying a house in Toronto!
The Foreign Policy
A great thing about Canada’s real estate policy is that there are no rules that are prohibiting a foreign citizen to acquire any type of property; on the other hand foreign citizens or non-permanent residents (if you didn’t live there for more than half a year) will need to pay an additional tax which is usually 15% of the property’s price. Along with that, it is important to know that acquiring a real estate property in Canada doesn’t come with any immigration privileges and your chances of becoming a citizen/permanent resident are still the same.
What About Financing
Well, here there are a few differences than if you were a Canadian citizen or a permanent resident. And that is where a good realtor such as Chestnut Park real estate agency can advise you and help you find the best options. First and foremost, lenders usually ask for a larger downpayment when you are a foreign citizen – it goes up to 35% of the whole sum. Along with that, the interest rates are going to be somewhat higher – still, this shouldn’t represent a problem, and you can still get quite a good mortgage deal.
As mentioned above, apart from the additional 15% tax that you have to pay as a non-resident, you will be paying land transfer taxes that Canadian citizens and permanent residents do as well. And yes, if you decide to sell your property, later on, there are certain tax implications relating that as well.
Buying The House
As of the offer making certain sellers accept the option that you make an offer via Facetime or Skype; on the other hand, our recommendation is to hire a good Toronto realtor that will help you and guide you to the process. Not to forget, certain lenders, require your physical presence when making the mortgage deal.
Last but not least, before you decide to buy the house we suggest that you inform yourself on insurance options and policies given the fact that these know to get somewhat expensive if you are not a citizen or a permanent resident of Canada.
Summary
Buying a house in Toronto shouldn’t be a problem. Of course, a lot depends on your budget, but if you are ready to do it and have found a good realtor to help you along the way it will be a piece of cake!
