Where To Start - Be Prepared Your first step should be to get the money you are going to use for your home purchase into a Canadian bank account.
The Toronto real estate market is fast paced with properties selling quickly. For peace of mind be prepared by having the funds in Canada and ready to go. Sudden fluctuations in currency exchange rates and delays in money transferring from foreign countries can negatively affect the outcome of your home purchase.
When making an offer to purchase property in Toronto you will be required to present a deposit of 5%-10% of the purchase price in the form of a certified cheque, bank draft or money order in Canadian funds from a Canadian bank.
If you are applying for a mortgage this becomes even more crucial to have the funds seasoned here in Canada. As a foreign buyer it is possible to obtain a mortgage on up to 65% of the value of the property. This means you would need a down payment of 35% or more. In order to qualify the lender will want to see income tax returns so they can verify your ability to carry a mortgage.
Retaining a mortgage broker to assist you in the financing of your Toronto property can save you time and money. These licensed mortgage specialists have access to many Canadian banks and can negotiate the lowest rate for you. This eliminates the need for you to go from bank to bank to get their best rate. Because of the quantity of mortgages they deal in they get volume discounts and those savings are passed onto you. It does not cost you anything to get your own mortgage broker as their fee is paid by the lender. You can find a good mortgage specialist through your real estate agent.
Canada is known for having the safest banking systems in the world and as a non-resident one can easily open a Canadian bank account through a personal visit to the bank branch and providing applicable photo identification.