How to Buy Property in Toronto, Canada.
The process of a foreigner buying in Toronto as being “pretty straightforward.”
“You don’t have to be a citizen here but you have to have your money here, and it is easily transferable in today’s global economy,”. Funds should be available in North America for when you are ready to make a purchase. (Note: Many Canadian banks have branches in the U.S.)
Once you choose a home, you can expect to pay a 10% deposit. Deposits are generally staggered, usually over the course of 18 to 24 months (for example 5% on signing a deal, 5% in 60 days, 5% in 180 days, 5% in 365 days, and so on). “These deposits are held "in trust” and are guaranteed 100% refundable should a project not proceed"
If you need financing, make sure you are already pre-approved by a bank that has branch locations in Canada. "For properties valued at over $1 million Canadian dollars, domestic purchasers are required to have at least 20% equity in the property,” “ A foreign purchaser will usually [need] 35% equity in the property"
Lenders are a bit more conservative in Canada. “Canadian banks have historically been much more cautious lenders than American counterparts, and the federal government has maintained oversight and instituted minimum lending standards to reduce the risk of correction across Canada,”
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