Most important tips for American homebuyers in Toronto

There is no limitation for American citizens to buy a house in Canada, but they should know that the rules would be different about taxes or payments for non-Canadian residents. There are some important tips that all the Americans who decided to buy a house in Toronto must know. First, it is recommended to hire a professional Toronto real estate agent to help them better understand all the related rules and regulations. Then, you can read the following tips to successfully find your ideal house in Toronto real estate market.

Is it necessary to be a citizen or permanent resident?

As an American homebuyer in Toronto, you don’t need to be a permanent resident of Canada. But you should also know that this ownership cannot give you any residency or immigration rights. The important tip you should know is that as an American, you need to pay 15% of the purchase price as a Non-Resident Speculation tax at closing when you want to buy a property in Toronto.

Who is involved in the process of buying a house in Toronto?

In Canada, there are no escrow companies. In other words, the real estate brokerage is the one who holds the deposits and your lawyer manage everything related to fund transfer. All the parties involved in the house-buying process in Toronto include: 

• A licensed realtor to represent you as a buyer and certainly lead you through the entire process of buying a house in Toronto

• A real estate lawyer to perfectly manage all the closing arrangement

• A home inspector to find out if the house needs any serious repairment or renovation

• A lender institute for down payment and mortgage, unless you want to buy in cash

• An insurance broker to help you with home insurance in Toronto, especially if you don’t want to live in the home yourself.

Financing

In Canada, you can receive financing from Canadian Banks as either a 20% downpayment or 35% of the purchase of a property. Americans are also eligible to receive the same mortgage interest rates as Canadian residents. But you need to be qualified for the mortgage, which means you will need confirmation of income, credit references, US credit check, so forth.

For this reason, you should be present in Canada and open a Canadian bank account. Because Canadian banks ask U.S. citizens to put at least a 35% downpayment for the purchase price. This specific amount of money needs to be in your Canadian bank account for a while before you can use it to buy a property in Toronto.

How much does it cost an American to buy a house in Toronto?

When you decide to buy a Toronto house, you should pay for taxes plus closing costs. Here is a brief list of all need to pay:

Taxes

• Land Transfer Taxes to take possession of the property

• Municipal Property Taxes (annually), it is different in each city

• Capital Gain Taxes when you sell

Closing costs

• Mortgage Broker Commission 

• Legal Fees (depends on the purchase price and lawyer)

• Property Appraisal

• Title Insurance to describe your legal ownership of a property and its land

• Home Inspection Fee

• Balance of Purchase Price

• Registration fees, it is varied by document, property type, region, and province

Home Buying Timeline

After clarifying the financing and deposit amount with your Canadian bank and mortgage broker, it is time to start the home search. You can search Toronto houses even from the US. But you should know in Canada, the price and tax history information are not publicly available, so they are not searchable like most parts of the US. You should better do the necessary due diligence upfront. Then, considering the Toronto real estate market and the best time to buy a home in Toronto, you can search for a proper house based on your personal preferences. There’s no specific time span for this phase, it may take a few weeks to a few months. After you find your ideal house, you will make a successful offer to purchase the property. And after all the negotiations, closing and transferring the ownership and keys will be 60-90 days after that.

My advice to Americans who want to buy a Toronto house is that explore more about the Toronto lifestyle before buying. Try to get to know the neighborhoods and the different types of houses available in Toronto. See you want to live in downtown, midtown or suburbs of Toronto.

Buying or Renting home?

Most people in the community think that owning a home is better than being a tenant, and everyone has their own reasons for doing so.

But what about you?

Is it important to live in a house that is for yourself?

Or does it make a difference to you if you live in a rented property?

Of course, we can all say that we like to live in a fixed place, a house that we have complete control over.

Whenever we want to change the interior architecture or paint the walls to our own taste.

But life does not always go according to our wishes and standards.

And sometimes during our lives we are forced to rent and accept a series of rules.

There are several factors involved in your decision to buy or rent a home

 And you have to see what your personal and family circumstances dictate.

Owning or renting a house?

Within each family, there are specific circumstances with different criteria, and we can not reach a final decision about everyone.

In this article, we are going to state the points that should be considered when deciding to buy or rent a house.

And leave the final decision to you.

Buying a house

Buying a home should be one of the momentous events of your life.

Because he has been working hard and planning for many years and decides to spend it on buying a house.

There are a few important things to keep in mind when buying a home

-Financial stability

According to experts, if you are planning to buy a house

Make sure you have job stability for the next few years (at least 3 years).

Buying a home at any time and under any circumstances requires a high payment and may force you to take out a loan or borrow from others.

So consider all your financial and work conditions and assess your financial strength

If you have job stability and financial income for the next 3 to 5 years

You can make the necessary plans for the purchase.

Assess the economic situation

If you have the money to buy a house and you have chosen the neighborhood and house you want, assess the market conditions!

It is not always the time to buy a house.

You may need to wait a while at a certain time in terms of the economic conditions of the community.

Until the market calms down from tensions and false prices and transactions reach a certain stability.

In this case, you can ask a professional real estate agent for advice and then proceed to purchase.

- Have full time and energy

Buying a home requires a lot of time and energy in addition to capital.

Follow the house with full patience and enough concentration.

Search all specialized sites and stay up to date with the latest news and information.

Look for a reputable and professional real estate agent

To buy a suitable house with enough search and more accuracy.

We suggest that if you do not have enough time or patience, postpone the purchase of the house or ask for help from friends and people you trust.

Because buying a house is a big and important issue and requires enough time and energy.

- Check the priority of your life

Examine your life priorities well before you buy

Is Now a Good Time to Buy Your Home?

What is the purpose of your purchase?

Before buying, thoroughly consider all these factors to make the best decision about spending.

Be prepared for big changes in life

Buying a home should be one of the momentous events of your life, so be prepared for it.

You may not be able to be financially independent for long, and you may need to save more and manage your living expenses.

Also, the house you bought now is based on your budget and financial ability and may be completely different from the house you had in the past.

Your mind would be disturbed in this case and you might feel confused and worried about moving things and arranging them.

But do not worry, the important thing is that now you have a home and you have reached a spatial stability in life.

So get rid of worries and worries from your mind and use your creativity and mental ideas.

Put away useless items and tidy up the house with the rest of your belongings.

Positive points in buying a house

1. You have complete freedom to decide

When you own a home, you can make the changes you want at any time

Make the decoration to your taste and change the color of the walls to any color you want.

You can live for years without worries and not worry about moving.

You have the power to take care of the animals and you can decide for your life more freely.

2- You are safe from inflation and rising prices

When a house deed is written in your name, you are away from all the increase in prices and inflation until the moment you own it.

Because you have a home to live in and capital.

3- You will be relieved from paying extra fees

By buying a home, you give yourself the chance to spend your monthly rent on a savings or mortgage payment.

By doing this, you will save a certain amount per month and at the end of the year, you will see savings with a high amount.

4- Maintaining peace of mind

When you live in a house that you own, it is like stress

You are far from paying rent, furniture, inflation and rising annual prices.

And if the price of a house goes up, you have a safe investment to make a living.

In general, buying a home can protect you from stress and rising inflation and prices.

Negative points of buying a house

Buying a home does not have to be complicated

If you want to make a profit from buying a house and increase the price in the shortest possible time, buying a house is not a good option for you.

Because the main factor in property pricing is economic conditions and these conditions depend on several factors and may be different at different times.

Sometimes it increases and sometimes it stagnates and stays the same, but sometimes it is possible to reduce the price.

As a result, you may be forced to sell for less when you sell due to lack of time and lack of buyers.

-Payment of sudden expenses

If you are a homeowner, do not be surprised at all by some sudden and of course high costs.

Plumbing may be in trouble or very fast and significant internal costs may occur

There are also municipal taxes and fees, and all of these costs are the responsibility of the homeowner.

As a result, always have a mindset ready for these events to happen and consider a cost.

The above are important and general points that should be considered when buying a house.

Of course, keep in mind that if you can afford it, always having and buying a home can be the best option.

Although few, there are people who can afford to buy a house, but their preference is to live in a rented house.

Usually these people have their own reasons and of course everyone's opinion is completely personal and respectable.

Here are some important tips for renting a home

Specify the length of your stay

Lease of apartments is usually agreed upon under a one-year contract.

But if your conditions are specific to concluding a contract and you need more or less time, be sure to discuss it with a real estate consultant.

So that you do not face serious problems in the future.

- Rent a house or mortgage it?

Examine your financial strength before closing any contract or letter of commitment.

The amount you pay as a monthly rent will never be refunded to you and you will be paid on a specific date each month.

You have to pay for it. So check the financial situation well before concluding the contract.

Also, if you can not afford to pay monthly, you can mortgage a house.

In this case, you will pay a total amount according to the agreement, and when you get up from that house, you will receive the full amount paid.

- Do your transactions legally

Even if you are going to be in a detached house for less than a year and pay a small fee, it is still better to make it legal and in writing.

Because you pay a fee anyway and your landlord has obligations to it.

To avoid any problems, it is better to always write and formalize your contracts.

Renting is not always a bad idea, contrary to popular belief, and it can have its ups and downs.

First, you do not have to worry about high construction costs

When you enter a residential apartment as a tenant, you only have to pay a monthly charge that is related to the running costs of the building.

Like payment (joint bills - cleaning - gardening, etc.)

However, it is the responsibility of the landlord to pay the general costs related to repairs or replacement of the equipment and you are exempt from paying it.

- You experience living in a certain neighborhood for a while

Renting gives you the opportunity to live in that neighborhood for a short time before buying a home.

And before buying and staying long, check the conditions of the neighborhood and the area.

- High diversity

Renting is a great opportunity for people who are diversified and will soon get tired of the environment.

In this case, instead of paying a lot of money for internal changes after the end of the contract, they easily pack up and go to a new place.

In general, as a final point, buying or renting a house is a completely personal decision and will vary according to the circumstances of the people and their priorities.

As a result, always consider the general conditions and buy or rent with the right and definite decision.

What experiences have you gained from renting or owning a home in your lifetime?

Share your useful experiences with us.

How to sell your home fast in Toronto

 Normally in the Toronto real estate market, it takes about 30 days to sell a property. In some cases, Sellers might want to sell the house as quickly as possible. They may have a new job transfer to another city, couples are separating, or they need cash for something emergency. 

These days during COVID-19 pandemic and considering its effect on the market, the importance of converting your house to cash if necessary is obvious. Here, we summarize some important points to help you sell your home faster. Try to use these tips and avoid these mistakes when selling your home.

First and most important point is to find a top Toronto real estate agent who knows the market, is perfectly aware of the neighborhood and has good information about the selling process. When you want to sell your home fast, finding the best real estate agent suitable for your case is very important.

The perfect realtor® should not only know your area and your market, but also use the best tools and strategies to sell your house quickly. So, hire a dedicated and committed real estate agent. 

Your agent uses the best pricing strategies to help selling your home fast. Some people think that it is better to price their house high. They don’t know it just puts their house in the wrong competition and makes it less likely to be seen. The best strategy is always choosing the right price considering your area and market. Here are the best instructions for how to price your house for sale in Toronto.

Another important tip which has an important role in selling your house fast is home staging. A good staging can even increase your house value. A full service real estate agent can offer you staging services. But there are some easy and less expensive ways too. For example, you can use a virtual staging method using the perfect pictures of your house.

You better ask your real estate agent for the staging process. Sometimes just a minor change like painting the living room can make a huge difference. The first impression is very important for the potential buyers when they visit your house. So keep everything clean when your house is on the market and always be ready and flexible with showings to avoid losing the potential buyers.

Depersonalizing your house is another important tip for a better impression. Remove all the personal political or religious items or family photos and weekly programs from the house. Let the potential buyers feel your house closer to what they can imagine as their own house. Depersonalizing the house can induce this feeling to buyers and make them feel more comfortable.

The last and most prominent point is using the proper marketing strategy. For selling your house quickly, you should exactly know how to use marketing strategies. Of course real estate agents are the best people to give advice and use their help. They will offer you the most useful marketing strategy considering the type of your house, your neighborhood, and price point. 

Costs of Buying a Condo Apartment in Toront

 

Considering the annual appreciation of condos in Toronto real estate market, buying a condo apartment has been a profitable choice for the investors and first time home buyers. But as a first time home buyer, do you really know how much it cost to buy a condo in Toronto?

You should consider many things, including mortgage, down payment, land transfer taxes, closing costs, etc. Since you can’t do the whole process by yourself, you should consider some other costs too, such as your real estate agent commission, fees for home inspection, and so forth. Let’s review the approximate costs of buying a condo in Toronto.

First thing you need for buying a house is a mortgage, unless you are a billionaire superstar. Mortgage is the amount of money you loan from your bank which cannot be more than 3-4 times your total income. 

If you multiply how much money you make each year by 3 and then by 4, it will give you the range of buying price. For example, if you are going to buy a $600,000 condo with a 20% down payment, you need about $480,000 mortgage.

If you decide to buy a house, start saving your money to show your bank that you can be trusted for lending money to. Remember: The higher your down payment, the lower your monthly payments of mortgage. 

The approximate down payment for a condo with the total price under $500.000 is 5% (if you qualify based on lending guidelines; for a condo priced $500.000-$999.000 you should pay 5% on 1st $500k plus 10% on remaining amount; and down payment for a condo over $1.000.000 is 20%. So based on your plans, start saving your money as soon as possible.

Your next cost to consider is the land transfer tax. It is a tax you should pay for the transfer of property ownership. This one is always on the buyer to pay. The amount of land transfer tax depends on your property value ranging from 0.5% to 2.5%. It means the more value, the higher the tax. It must be paid on the closing date, so remember to consider it in your budget.

There is also legal fees and title insurance. You may consider the total amount of $1,500 to $2,000 for closing costs such as fees for your layer or Toronto real estate agent, home inspector and the title insurance (to protect you from all issues related to the purchase and title).

The last one is for those who want to live in their new bought house, which is the moving costs. It doesn’t matter whether you rent or buy a condo, whether you want to do all the moving by yourself or hire a moving company, you better consider the approximate amount of $1,000 to $2,000 for this phase. 

The advantages of renting out a condo

The Toronto real estate market has many offers for prospective investors and first-time home buyers in all price ranges. Buying a condo has so many benefits as an investment or renting it out. It certainly depends on the current real estate market in your neighborhood. 

A top Toronto real estate agent knows all the advantages and disadvantages of the business. So paying attention to your realtor’s advice can help the process of owning a rental property. let‘s review some advantages of renting out a condo.

1. You can counter the inflation rate rising by condo investment. Because in the past, condos value have exceeded the inflation rate in Toronto. By looking at the TREB’s average condo price trend since 1996, you can see that the condo owners are way ahead of the inflations. It means the value of condo apartments generally appreciate at a rate which is mostly higher than the inflation rate.

2. Most of the people are confused by choosing to rent or buy a house. But, the city of Toronto is always filled with those who are looking for a good condo to rent. In fact, over 120.000 people come to GTA each year, so it is obviously easier to find a renter for a condo, especially in a downtown area. Of course the exact time for renting a condo completely depends on the location and neighborhood.

3. Repairing and upgrading a house increase its value. Although maintenance of a condo is so much cheaper than a house, but as a condo owner, you have no responsibility for repairing or upgrading outside of your unit. It means you buy a condo for investment, you don’t need to upkeep the management and maintenance problems, and however your condo value is still increasing. How amazing this would be!!

4. Renting your condo can be a good option for finding the right time to sell. For example, when you are ready to move, but the market condition is not proper for sellers. Here, you have the option of renting your property rather than selling it. Therefore, renting option gives you the flexibility to sell your house in a better market situation and obtain more profit.

If you are considering the investment on a rental condo, there are some important factor you should pay more attention to. These factors can help you rent your condo sooner and easier. 

The location and the quality of the condo neighborhood have an important effect on the tenant. So you better think over its walkability, public transit access or proximity to grocery store or even parking space. You must consider all the factors which are important for you to live in a neighborhood.

Do not answer these 4 questions when selling a house!

These are the questions that come with buying a home

First real estate consultants and then buyers ask you when they visit the house.

How many years have you lived in this house?

Why are you moving?

How are the neighbors?

 What repairs have you done to your home recently?

I see your neighbor has sold his house. Do you know what price it sold?

It makes perfect sense for real estate consultants to ask these questions. Because for pricing, your property needs to be sold quickly to have all the information about your home. But buyers are asking these questions to ask for a price reduction and get a discount from you. If you want to have a logical answer to these questions that you are finally asked and sell your home at a high profit and without loss, we suggest that you follow this article.

Here are some things to look for when selecting yours

Make a definite decision to sell your home

Selling a home for any reason is not an easy task at all. You need to plan for a new place to live. Get ready to move in and find a new home. Do not discuss your decision with a real estate consultant until you are sure of these issues. Because the customer may be present at the first opportunity to buy a house, but you have not yet found a new place to live!

Have accurate and reasonable pricing for your property

Do not get emotional about pricing the property! The customer buys your house based on the market price and the existing conditions. Not based on the years you lived in that house and have good memories. Be sure to consult real estate experts and consultants to price your property. In general, try to make the total amount reasonable and acceptable. By doing this, you will increase the speed of selling the house and finding real customers, and fewer people.

They ask for a discount and a price reduction from you.

If your home needs major repairs, act immediately

Usually, no one wants to buy a house that pays for repairs in addition to the money.

 If you plan to paint the house, you can wait until the customer is found

From the deal, you can be sure that you can paint the walls according to the customer's taste. This will increase your chances of selling the house. But before doing this, be sure to clean the walls, so that the house is completely ready for the customer to visit. Be.

 Pay attention to the time of pest control at home

The presence of beetles in the house may be normal, but it is not at all pleasant for the buyer to buy a house where the beetles are moving. So be sure to pay attention to this issue and do all the pesticide steps some time before the start of home visits.

Once you have made the necessary arrangements for the sale of the house, prepare yourself for these questions.

These are four destructive questions, pay close attention to their answers!

1- Why are you moving?

Everyone has their own reason for moving. Work, education, marriage, new neighborhood, bigger house, etc. All of these are factors that make people decide to relocate. If you are going to sell a house, prepare yourself for these questions because usually 90% of buyers will ask you this question. This question may not seem pleasant to you and may even upset you, but the buyer by asking This question just wants to make sure that the reason for your relocation in the future does not lead to his relocation and prevent this issue.

2- How are the neighbors? Tell me a little about them!

Maybe you and your family are busy and have never had time to talk to your neighbors and be intimate with them. And you are only familiar with them to the extent of construction sessions. In this case, do not be surprised when you are asked this question. Maybe for others, the neighbors and their treatment are important. Remember that your idea of ​​a good neighbor may be completely different from theirs.

For example, you like a neighbor who is calm and quiet, but someone else likes to socialize with neighbors. In this case, it is better that when you are asked the neighbor Rajab a question in one sentence

(We have really good neighbors and we have not had any serious problems so far and we lived well together) Enough.

By saying a positive and motivated sentence, both relax your mind and create a positive attitude in the mind of the buyer.

Of course, keep in mind that if it is a specific issue that the buyer should be aware of, it is better to state it.

By doing this, you will both prevent serious problems in the not-too-distant future, and you have done the right thing.

3- What repairs have you done in your house recently?

If you are one of those people who are with the consultant and the buyer when visiting the house, in addition to having to answer these questions, you will witness a series of events. The customer will surely ask you what repairs you have done recently and what problems the house has had?

And after asking these questions, they start visiting the house. When you visit a buyer, you know your right to see everywhere in the house with full care and detail. He may look at the door locks, check the window handles and the balcony. Check the floor and even want to see inside the closet. If your house is empty and you have gathered your belongings, this is not very difficult for you. But if you have not yet fully packed up and are living at home, this visit may not be pleasant at all. So if you are planning to sell a house, you need to prepare yourself for anything. Because you are going to meet new people and different encounters.

4- I see your neighbor selling his house; At what price did they sell their house?

Buyers are likely to call everyone who looks appropriate, if there are only a few. They may even visit your street several times and visit many houses in the area. So do not be surprised if Rajab asks your neighbors' house and their pricing. Ask your real estate consultant questions about pricing and finance.

Because it is the only real estate consultant who, with knowledge and awareness and mastery of current prices, the market can determine the value of homes and answer any questions in this regard.

A few important tips on avoiding devastating questions

Be sure to choose an experienced and professional real estate consultant to sell your home

Listen to the advice of a real estate consultant

Try not to be home when visiting

Prepare yourself for any encounters and questions

Make a definite decision to sell your home