8 STEPS TO BUY RESALE PROPERTIES IN TORONTO FROM HONG KONGBy CondoWong Friday, December 20, 2019
Recently I received many requests from Canadians living in Hong Kong regarding how to purchase a resale unit in Toronto from Hong Kong.
Let me share with you a step by step guide on how you can purchase a unit, get a mortgage and rent the unit out from Hong Kong, without physically coming to Toronto.
Step #1 - Consultation
This is the step where I get to know you. I'll call you to discuss your goals, requirements and budget.
Step #2 - Mortgage Arrangement
With a resale purchase, you need to get 100% of your funds ready in 60 days, typically 35% cash for the down payment and 65% from a mortgage.
I will connect you with a mortgage specialist in either CIBC or HSBC. Both banks have branches in Hong Kong so you can simply go to a branch and sign the mortgage documents.
If you don’t plan to come to Toronto to complete the closing of your unit, then CIBC and HSBC are the best choices to get a mortgage.
If you do plan to come to Toronto for closing, then I can refer you to a local mortgage specialist in Toronto who can help you make a mortgage arrangement with any local banks.
Step #3 - Unit Selection
I will select 10 best units that are most suitable for your situation.
You will need to provide me with feedback about what you like and what you don't like about the units within 48 hours.
This is the best way for me to learn more about you so we can make the unit selection process more effective.
Your prompt response is necessary as the current resale market in Toronto is moving very fast.
Once we narrow down to 3 units that you like, we're ready to proceed to:
Step #4 - Virtual Tour
Our team will go to each of the units and take a video for you.
You will be able to visualize the units and the neighbourhoods through the virtual tours.
Step #5 - Offer Negotiation
When we lock down to a target unit, we will proceed to a written offer.
You will be able to sign the offer documents electronically with your phone or computer.
We will handle the negotiation process and get you the best offer possible.
Once the offer is accepted, you will need to wire transfer the deposit to us within 24 hours. The deposit is typically 5% of the purchase price.
Step #6 - Closing
The closing date is typically set within 60 days from the purchase date.
We will connect you with a lawyer in Hong Kong and a lawyer in Toronto.
The Toronto lawyer will work with your bank to get your mortgage funds, typically a week before the closing date.
You will also have to wire transfer the remaining balance to the Toronto lawyer. Make sure the funds arrive at least 5 business days before the closing date.
The Toronto lawyer will send all the final closing documents to the Hong Kong lawyer.
You will have to attend the Hong Kong lawyer's office in Central a few days before the final closing date to sign the documents.
The unit will then be transferred to you on the final closing date. And now, you're the owner of the unit.
Step #7 - Rental
Our rental team will pick up the keys for you and list the unit for rent immediately.
Our goal is to find you a high quality tenant within the shortest possible time frame so you can start collecting rent right away.
You will be able to sign all rental related documents electronically.
We will also manage the unit for you so you won't need to worry about dealing with your tenant at all.
It is also our responsibility to make sure you receive your monthly rent on time.
Step #8 - Accounting
We will connect you to a Toronto accountant who is an expert in handling non-resident taxes.
As a non-resident, you will need to pay 25% of your net rental income as taxes.
The accountant will handle all the necessary for your non-resident tax filing.
Those are the 8 steps. I hope you find this step by step guide useful.
Of course, I will guide you through each of the steps.
If you have any questions that you'd like me to answer, you can also schedule a call with me.
If you want more information about the Toronto real estate market, make sure you click SUBSCRIBE to my YouTube channel and hit the bell now.