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Real Estate in Canada

Real Estate in Canada. Map of Canada. Canada - US.

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Real Estate in Canada

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  1. Real Estate in Canada Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  2. Map of Canada Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  3. Canada - US • Canada has become the United States’ most important trading partner. Canada is a large exporter to the United States of critical raw materials—including natural gas, petroleum, and wood products—and a substantial importer of finished industrial and consumer goods. There is about $500 billion worth of annual trade between the US and Canada. Sources: United States Department of Agriculture and, Plattsburgh State Center for the Study of Canada Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  4. Canadian Economy Currency: Canadian Dollar Exchange Rate: $1 US = $1.15 CDN The Bank of Canada controls the interest rates affecting the Canadian economy similar to the Feds in the US. Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  5. Major Banks Royal Bank of Canada http://www.royalbank.com/ Toronto Dominion Bank http://www.td.com/index.jsp Canadian Imperial Bank of Commerce http://www.cibc.com/ The Bank of Nova Scotia http://www.scotiabank.com/ Bank of Montreal http://www.bmo.com/ National Bank of Canada http://www.nbc.ca/ Fédération des Caisses Populaires Desjardins http://www.desjardins.com/en/accueil.jsp Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  6. Mortgage Rates 7 - 10 yr mortgages not as popular as 5 yr Term. (TD Bank Rates: 9 Feb 2007) Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  7. Canadian Mortgage And Housing Corporation CMHC is Canada's national housing agency. Equivalent to HUD and FHA in the US http://www.cmhc-schl.gc.ca/en/co/ CMHC is the Canadian Govt entity for Affordable Housing CMHC issues Mortgage Loan Insurance (PMI in US) • Homebuying step by step brochures • The Newcomer's Guide to Canadian Housing • Housing Market Information • Homebuying Videos • Mortgage Calculator Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  8. Major Differences • Interest paid on mortgage is not tax deductible in Canada. (mortgage on primary residences and personal use recreational real property only) • Interest paid on mortgage is calculated differently in Canada than in the US (http://www.dinkytown.net/) Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  9. Taxes • GST taxes affect every Canadian. (Goods and Services Tax – 6%) • GST is due on purchase of new residence ( For more info on GST/HST New Housing Rebate Application for Houses Purchased from a Builder, visit : http://www.cra-arc.gc.ca/E/pbg/gf/gst190/README.html ) • Land Transfer Tax, Property transfer tax (Stamp Tax) is calculated on the price minus GST on new properties. This tax is sometimes exempt for first time buyers if below a certain amount. Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  10. Buying Process • Buyer Agency Program • Broker keeps most documents on file. • Confirmation of Representation states who is working for who and who pays the commission. • By law, in Ontario, the Buyers Real Estate Agent has to attend the Home Inspection • But there is a disclosure statement signed by the buyer to exempt the agent from liability. • Agency disclosure (varies by province) • Buyer agency (varies by province) • Agreement of Purchase Freehold (varies by province) • Confirmation of Representation (varies by province) Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  11. Closing Process • In Ontario, closing is done by a Real Estate Attorney. • Title insurance costs between $395-$495, Title insurance can only be purchased thru lawyer • Lawyer charges $500 - $1000 per closing, $200 to register mortgage on title, $125 to discharge • Buyer -> Lawyer -> online registration <- Lawyer <-Seller • Photo ID at Lawyers office taken from client, Drivers License, Passport etc • Keys are sent by courier or taxi. Buyers do not meet Sellers at closing. • For a $150K new condo, the Land Transfer tax is calculated after a factor of 1.045 is calculated to account for the GST. So it is about $2000 for a $143,540 condo. Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  12. Foreign Investors • Foreign Investors, (Non-Resident) have to pay a 15% withholding tax on Capital Gains to Revenue Canada upon the sale of a property. Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  13. Realtors®in Canada • In some provinces agents need to carry their license at all times, as they may be required to hand over their license during visits with developers. • Typical Commission rates vary 4 - 6% (not calculated on full price if new because of the GST) • Some developers are paying up to 5 % to selling brokerto liquidate remaining inventory (so typically 2.5% to specials as high as 5%) Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  14. Real Estate Agent Training The training to become an agentin Canada varies from province to province and requires continuing education to keep the license valid. (training subjects include: Title, Mortgage, Insurance, taxes, legal, etc) Training in Canada (verified in Ontario) • Phase one was one week in class now available by correspondence) test • Phase two was one week in class( now correspondence and DVD versions) test • Phase three is two week in class and two hour exam after • 75 is minimum passing grade. • Then you must take Mortgage financing, Real estate law and Appraisal within the next 24 months to renew • License fee is $250 bi annually Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  15. Canadian Real Estate Association The Canadian Real Estate Association (CREA). http://www.crea.ca/ CREA represents more than 88,000 REALTORS® across Canada. The Association owns the MLS® trademark, has proprietary ownership of the REALTOR® trademark, and operates national web sites. There are 99 real estate Boards, 10 provincial Associations and one territorial Association. The National Commercial Council (NCC) of The Canadian Real Estate Association (CREA), represents commercial real estate specialists from Boards and Associations across Canada. Main Canadian Real Estate Websites: http://www.realtor.ca/ For residential properties: http://www.mls.ca/ For commercial listings across Canada: http://www.icx.ca/ Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  16. Provincial Associations The British Columbia Real Estate Association (BCREA) http://www.bcrea.bc.ca/ Alberta Real Estate Association (AREA) http://www.abrea.ab.ca/ The Association of Saskatchewan REALTORS®(ASR) http://www.saskatchewanrealestate.com/ Manitoba Real Estate Association http://www.realestatemanitoba.com/ The Ontario Real Estate Association (OREA) http://www.orea.com/ Quebec Federation of Real Estate Boards / Fédération des Chambres immobilières du Québec http://www.fciq.ca/english/home/home.htmlhttp://www.acaiq.com/ The New Brunswick Real Estate Association http://www.nbrea.ca/en/ The Nova Scotia Association of REALTORS® http://www.nsar.ns.ca/ The Prince Edward Island Real Estate Association(PEIREA) http://www.peirea.com/index.html The Newfoundland & Labrador Association of REALTORS® http://boards.mls.ca/nl/ Yukon Real Estate Association http://www.yrea.yk.ca/ Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  17. Large Brokerage Firms • http://www.coldwellbanker.ca/ • http://www.remax.ca/ • http://www.royallepage.ca/ • http://www.century21canada.com/ Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  18. News, Forecasts • Real Estate News http://www.remonline.com/rem/home.aspx http://realtytimes.com/rtmcrtop/home.htm • Nov 2006 2007 Forecasts http://www.scotiacapital.com/English/bns_econ/retrends.pdf Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  19. Quotes • I live in Vancouver, host city for the 2010 Winter Olympics. We are a city experiencing tremendous growth right now- the job market is flourishing, construction is booming and the city is pumped for the 2010 games and beyond!! This is a superb time to invest here! • Toronto, Best January Ever! February 6, 2007 -- The new year got off to a fast start, with 5,173 sales of existing homes in January, TREB President Dorothy Mason announced today. "This figure is up 13 per cent over last January, and up six per cent over the 4,869 sales recorded in January of 2002, which was the previous record for the month." Meanwhile, average prices climbed in January to $353,724, up five per cent over December and up six per cent over the $332,687 recorded in January 2006. "While one shouldn't read too much into a single month's result," the President said. "January's record breaking performance is an encouraging sign for the year ahead." Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

  20. Special Thanks • Ontario:David Pylyp, Sales Representative, RE/MAX Realty Specialists Inc. (905) 272-3434 www.davidpylyp.com • Prince Edward Island:Carol O'Hanley (Coldwell Banker Parker Realty) Cell Phone:(902) 394-0042 http://www.peihouses.com • British Columbia:Ryan Windsor, Phone: (604) 341-8181 http://www.windsorcastle.ca • Quebec:Jean-Claude Rousseau, Courtier Immobilier Agréé / Chartered Real Estate Broker, Royal LePage Experts, (514) 894-7919 http://www.jcrousseau.com/ • New Brunswick: Larry Estabrooks (506) 856-0202 http://LarryEstabrooks.com Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918

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