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									                   Real Estate in Canada




Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918   Wednesday, November 24,   1
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                               Map of Canada




Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918   Wednesday, November 24,   2
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                                   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   Wednesday, November 24,   3
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                         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   Wednesday, November 24,   4
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                                   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   Wednesday, November 24,   5
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                              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       Wednesday, November 24,   6
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                        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   Wednesday, November 24,   7
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                           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   Wednesday, November 24,   8
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                                             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   Wednesday, November 24,   9
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                               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   Wednesday, November 24,   10
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                              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   Wednesday, November 24,   11
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                            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   Wednesday, November 24,   12
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                        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 broker
      to liquidate remaining inventory
            (so typically 2.5% to specials as high as 5%)




Mario Levesque, Realtor®, People’s Choice Realty Services (813)857-6918   Wednesday, November 24,   13
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                    Real Estate Agent Training
 The training to become an agent in 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   Wednesday, November 24,   14
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               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   Wednesday, November 24,   15
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                      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.html http://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   Wednesday, November 24,   16
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                    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   Wednesday, November 24,   17
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                              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   Wednesday, November 24,   18
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                                           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   Wednesday, November 24,   19
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                               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   Wednesday, November 24,   20
                                                                                            2010

								
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