6 Tips American Home Buyers Must Know Before Buying In Toronto
Toronto has become a world-class city in recent years. Being the economic hub of Canada and the 4th largest city in North America, it’s no wonder that so many Americans are looking to buying a home or condo in the city of Toronto. Whether that be a relocation or transfer for a job with the Canadian head office. In fact, many tech companies are setting up offices in the Toronto area. It’s no wonder that we are fielding so many American home buyer questions. Add to the fact that Toronto has had one of the most robust, sturdy and overall great real estate investment markets. It makes a great deal of sense why so many American’s are buying Toronto real estate. There are six essential tips that American home buyers need to know before committing to buying real estate in Toronto. Let’s dive in!
1. Are Citizenship or Permanent Residency Necessary?
As an American looking to buy real estate in Toronto, you don’t have to hold a Canadian passport, and you don’t need to be a permanent resident of Canada. That being said, as an American, there is a Non-Resident Speculation tax of 15% (of the purchase price) that is to be paid at closing.
2. Financing
When it comes to financing, some Canadian banks will offer financing for as little as 20% downpayment, while others will require 35% to purchase a property. As is common with Canadian banks, there is some financial conservatism (which is helped Canadian real estate whether many storms that American’s faced south of the border) – the maximum amortization rate is 25 years. Fortunately, Americans have access to the same mortgage interest rates as residents and Canadians have access to. As for mortgage financing qualifications, it is the same standard requirements such as confirmation of income, US credit check, etc.
3. Investing In Toronto
Being that Toronto is the economic engine, largest and the most culturally diverse city in Canada, it’s no surprise that Toronto’s real estate values have been strong and going upwards for nearly 25 years. Many home and condo owners have built a great deal of equity in their properties. Our investors have generated an incredible amount of wealth as well. Since the economic crisis in 2008/09, we have seen values skyrocket – the low-interest-rate environment has driven property values through the roof. Another important factor to consider when investing in Toronto is that Canada has set a mandate to allow more than 450,000 immigrants a year into our country. This will only prove to drive up property values and more development for decades to come. Owning in Toronto has proven to be a great investment!
4. Home Buying Timeline
Once the above financing and deposit amount are clarified with either a Canadian bank or a licensed mortgage broker, you can begin your home search. We are digitally savvy, which means that you can begin your Toronto home search while in the States. In fact, we have had many clients purchase properties without being in the home. It’s a matter of building trust and doing the necessary due diligence upfront. Depending on your criteria, it could take anywhere from a few weeks to a few months to find the property you like and make a successful offer to purchase the property. Closings typically take 60-90 days after that.
5. Buying With A Trusted Realtor
We build relationships with our clients each step of the way. . We continue to serve as an advisor to our clients for years to come. We stay in touch to ensure that our clients know that we are here for the long term. It’s not about one deal. This is about serving our clients whenever a real estate question arises. Even out-of-town real estate questions, we can provide guidance and professional referrals to other top-producing real estate agents across Canada and the United States. We honour and respect our clients’ needs and choose to treat each client as we would wish to be treated. Trust is built over time – so we get to work early on this and see it through for years to come.
Best Family Neighbourhoods In Toronto
6. Toronto Lifestyle
Toronto’s lifestyle is somewhat akin to a quieter New York City. The biggest difference aside from a smaller population is that the suburbs are more affordable. There is a lot of open land within a short drive of the city, in other words, endless possibility to grow and prosper. The summers are sweltering, easy-going, and many fortunate Torontonians escape to cottage country to enjoy the thousands of fresh lakes that Ontario offers! Also, to be clear, we do not live in the arctic tundra or igloos (haha)! Our seasons are nearly identical to New York City!
Buying a property is an important decision that you shouldn’t take lightly. Working with realtors who genuinely care and look out for their clients is essential. We are precisely this type of real estate agent. We seek to give our clients all the information they need to sell their condos and make the best decisions possible for themselves each step of the way.
Let’s get started today!
