Real Estate in Canada

1. Canada & America Real Estate
Presented by
Sajad Ahmed & Dr. Naveed Siddiqui
www.sajadahmed.com
Disclaimer:
All Information is for educational purpose only
www.sajadahmed.com

2. Quebec
Ontario
Saskatchewan
Alberta
▶ Roughly the same size As U.S. (3.8 million square miles), but only
has 1/10 the people (34.6 million). It's 3 times the size of Mexico,
with 1/3 the people.
▶ Canada is sparsely populated: Climate in northern 1/2 cold
frozen for most of the year.
2
British Columbia
 Manitoba

3. Facts About Canada
▶ US & Canada shares longest border in the world
▶ Population over 40 million
▶90% of Canadians live within 160 kilometres
or 100 miles 0f U.S. border
▶ Main business province is Ontario
▶ Largest resource province is Alberta
3

4. Canada`s Exports
▶ 3/4 of exports go to U.S.
▶ Trade with U.S. & Mexico has tripled since 1994 due to
North American Free TradeAgreement (NAFTA).
▶ Oil
▶ Motor vehicles and parts
▶ Industrial machinery
▶ Aircrafts
4

5. Canada's Exports
▶ Canada is U.S. largest supplier of energy (i.e. oil, gas,
uranium, & electric power) (Source: "Canada's Economy," CIA
World Facebook.)
▶ Canada profited with the discovery of oil sands in Alberta.
Canada: 3rd largest oil reserves in the world behind only
Saudi Arabia and Venezuela: ranks 9th in the world in
recoverable shale oil and 5th in shale gas (Source: U.S.
Energy InformationAdministration).
▶ Canada: 11th largest oil exporter, recently surpassing Mexico.
(Source: "Canada Places in Top Ten," Calgary Herald.)
5

6. Canada`s Economy
▶ Exports $400 billion
▶ Canada is the US’s largest supplier of oil
▶ The US largest trading partner
▶ China is second
▶ Not affected as much by the 2008 recession as other
countries.

7. ▶ Chinese population in Canadian regions
Immigration Trends in Canada
7

8. ▶ Permanent residents by country
Immigration Trends in Canada
8

9. Business in Canada
 One of the most profitable places in the world for
international business and direct foreign investment
 In 2012 study, The best country for business in the
G-20 according to Forbes Magazine’s
 6th Happiest nation in the world
 Didn’t suffer 2008 economic downturn due to stricter
mortgage qualification requirements

10. Immigration Trends in Canada
▶ Over 250,000 immigrants become permanent
residents in Canada each year
▶ Every year over 150,000 foreign workers come to
Canada
▶ 60% are skilled workers, investors, entrepreneurs
and their families
▶Immigration is boosting the Real Estate Business

11. Famous Canadians
▶ Hockey players
▶ Celebrities
▶ Business people

12. Organizations in Canada
▶ Part of several Trade organizations;
▶ North American Free TradeAssociation (NAFTA) what
happens with NAFTAwill impact economy!
▶ Organization of Economic Co-operation and Development
(OECD)
▶ World Trade Organization (WTO)
▶Maintain up to date property costs with changes to NAFTA we may see a
real estate bubble in next couple years.

13. Canadian Culture
▶ Similarity in culture and business.
Subtle differences:
▶ For French Canadians, print all
material in French and English.
▶ Canadians are very polite: Say
“Sorry” on average 45,000 a day ;)

14. More Cultural Differences
▶ Personal space and body movement or gestures
differ between the English and the French
provinces and cities.
▶ In English areas, body movement is minimal.
Usually there no touching other than
handshakes, and personal space - how close
someone stands - is about two feet.
▶ In French areas, people stand closer together.
They frequently touch and gestures are more
expressive.
▶ Restrain your arm gestures when meeting and
talking with Canadians - other than with French
Canadians.

15. Online Property Resources
▶ Properties can be found on the
internet via property websites.
www.sajadahmed.com
real estate listing sites based in Canada
such as www.remax.ca.

16. Residency
▶ Citizenship: An American citizen or permanent resident doesn’t need
a visa to visit or travel through Canada; Restrictions are related to
the length of your stay. Rules and regulations for visitors to Canada.
▶ Non-Resident: If you stay in Canada for 6 months or less each year,
the government considers you a non- resident, but you can still open
a bank account and buy property.
▶ Resident: If you live in Canada for more than 6 months
per year, you must apply for immigrant status.

17. Canada’s Real Estate Transaction
▶ Real estate agents self-employed & earn fees in the form of
commission.
▶ Commission varies from 3-7% properties types & different
around the country.
▶In British Columbia and Alberta the typical rate is 7/3%, i.e. 7%
on the first 100,000 and 3% on the remainder.
▶ In Ontario and Quebec: usual rate is 5%. The
services of a realtor are free for the buyer.

18. Real Estate Terms
▶ Buyers’ agents new in Canada defined:
▶Buyers’ agents represent the buyer instead of the seller, and should
provide an unbiased opinion on properties, as buyers’ agents aren’t
selling properties on their own listings like real estate agents. They
are generally paid a percentage of the sales commission paid to the
listing Realtor. Buyers’ agents should also be licensed real estate
agents.
▶ Realtor: A real estate agent, broker or an associate who holds active
membership in a local real estate board that is affiliated with the
NationalAssociation of Realtors and the Canadian Real Estate
Association.

19. Facts on Canadian REALTORS®
▶ Exchange Rate: Prices shown on www.REALTOR.ca are in
Canadian dollars.
▶ For currency exchange rate: Bank of Canada's Daily Currency
Converter.
▶ Real Estate Property Taxes: If purchasing property in Canada as a
U.S. citizen, client may be required to file tax forms to the
Canada RevenueAgency (CRA): real estate tax rules and regulations
for American visitors.

20. Canada’s Real Estate Terms
▶ Buyer often referred to as the Purchaser
▶ The Seller often referred to as Vendor
▶ Principal: a person who has engaged an Agent to act for
and on his/her behalf either to buy or sell a home
▶ Dual Agency: Real estate agent is representing both buyer
and seller in the same transaction. Agent allowed when
promises confidentiality, loyalty and full disclosure to
both parties simultaneous, it necessary to limit these
duties in the situation, if both arties consent

21. Restrictions on Property Ownership
▶ Most provinces have no restrictions on foreign ownership of property.
Majority of Provinces (British Columbia, Ontario, Quebec, Nova
Scotia, Newfoundland, New Brunswick) have no restrictions on
foreign ownership of real estate in Canada, some limit the amount
of property/land that a non-resident can purchase.
▶ Some places do limit to the amount of land one is able to purchase.
▶ In Vancouver there is now a 15% additional tax for non- Canadian
citizens and non-permanent residents, due to the huge rise in
house prices there stemming from foreign, particularly Chinese,
investment in the property market.

22. Restrictions in Buying Property in Canada
▶On Prince Edward Island, non-resident buyers
must apply to the Island Regulatory and
Appeals Commission for land over 5 acres in
size, or land with a shore frontage greater
than 165 feet. In Manitoba, non- residents are
prevented from owning farmland unless they
actually plan to move there within 2 years.
▶Non-residents may not own land over 10 acres
in size in Saskatchewan, whilst in Alberta
they may only own up to 2 plots of land not
exceeding 20 acres in total.

23. Making An Offer
▶ Once an offer is made and accepted, a deposit is payable.
▶ When buying a house in Canada, an offer must be made in writing so all
aspects of the transaction are clearly outlined within the offer.
▶ Once the buyer has signed the document, it becomes legally binding. If
you withdraw from the offer at this stage, you may lose your deposit
and may also be sued.
▶ FIXTUREs: Make sure that every item staying in the property, e.g..
carpets, fixtures and appliances, is written on the offer as 'chattels
included'.

24. Realtor Add TWO Clauses
▶ Realtor should include two clauses stating that the offer will only
proceed:
▶ Subject to building inspection
▶ The buyer is able to meet your financial obligations.
▶ Once your offer is complete, it presented to the seller and negotiations
are made. This may include changes in price, completion date and
chattels. The changes are initialed by the seller and returned to you (the
buyer) for your initials. The resulting Agreement of Purchase and Sale
will state the purchase price and the deposit. The deposit is placed in a
trust account and is credited towards the purchase price once the offer
has been accepted by both the seller and the buyer and the transaction
is complete.

25. Canadian Banking
▶ Buying property may be good investment by data released by
BMO last year showing Canadian homes were 41 percent more
expensive than in the U.S.
▶ Interest rates were historical low for last several years.
▶ Moody’s ranked Canada’s banking system number one in the
world for financial strength for past nine years.
▶ CAD is Canadians sign of money below:

26. Canadian Mortgages differ In US
▶ Maximum amortization: Canadians Mortgages: Calculated on a 25-30
year amortization rate, with the contract renegotiation every five
years. While in U.S., the mortgage lasts for 30 years without a
renegotiation.
▶ In U.S., you may deduct mortgage interest payments,
but not deduct them in Canada.
▶ Need Income qualifications

27. Getting A Mortgage
▶ Permanent residents and Canadian citizens, a mortgage typically can
be obtained at 75% of the purchase price over a 25-year term.
▶ Non-residents typically take out a 65% mortgage and
have to pay 35% as a down payment.
▶ Qualifying for a mortgage depends on your credit rating, assets, income
and savings. The estate agent can help you to look for a mortgage
broker.
▶ After submitting the application, the relevant documentation approval
usually takes 1-2 days. The documentation required typically includes
proof of income, tax returns, ID and bank statements, among other
things.

28. Mortgage Documents
▶ Foreign banks cannot register mortgages in Canada, so any
mortgage would have to be raised via a Canadian mortgage broker.
(Please see 'Transferring Funds' for more information).
▶ The borrower will require the services of a Canadian lawyer or
notary public to prepare the mortgage documents and registration
at the Land Titles office.
▶ Documents can be couriered outside Canada for signing - this will
need to be arranged with the lawyer and lender well in advance of
the completion date.

29. Mortgage Documents
▶ Lawyer: Prepares the mortgage documents the borrower and can
help when negotiating and signing the deeds to the property.
▶ Legal fees around $1,500 fees and disbursements by the end of the
buying process. Lawyers review the Offer to Purchase, search the
title, draw up mortgage documents and tend to the closing details.
Lawyer fees varies between Provinces & depend on the complexity of
the sale and the type of property.
▶ Find suitable lawyer on sites such as www.canadian-
lawyers.ca,

30. Transaction Costs
▶ Realtor's Fees are paid by the vendor and are negotiable between 3 & 7%
of the home's market value. As an example, Realtors often charge 7% on
the first $100,000 of the sale price and 3% on the remainder. GST of 5% is
also applied to the Realtor's commission and is payable by the vendor.
▶ Appraisal Fee Your lender may require a property
appraisal at your expense. The cost is between $200-
$300.
▶ Survey Fee Your lender will require an up-to-date survey.
If the Seller does not have one, you will have to pay to
have one done. This can be approximately $150-$350.
▶ Lawyer's Fees Lawyers review the Offer to Purchase, search the title,
draw up mortgage documents and tend to the closing details. The fee
will be approximately
$500-$1500. This amount varies between Provinces depending on the
complexity of the sale and the type of property.

31. Transaction Costs
▶ Home Inspection Fee is usually around $450. This is the equivalent of a
survey in the UK and other countries and is carried out at the purchaser's
request.
▶ Property Insurance which covers the replacement value of the structure of
your home and its contents.
▶ Service Charges can be in the region of $35-$50 to hook up new services
and utilities.
▶ Condominium (Strata) Fees are charged monthly and cover building
insurance and maintenance. The building’s property manager will provide
you with the fee. For a newly built condo worth $250,000, expect to pay
approximately $200 per month (this varies from building to building).

32. Tax Guide
▶ Canada Law (Canada RevenueAgency)
▶ US Law (Internal Revenue Service)
▶ US/Canada Tax Treaty
▶ Environmental Law: Canadians insist
offenders of environmental laws be
held accountable
▶ French Language: The Charter of the
French Language makes French the
official language of the Province of
Quebec and confers on every person
the right to be communicated with in
French

33. Guide To Invest in Canada

34. Useful Resources:
▶ Canada Mortgage and Housing Corporation
▶ Citizenship and Immigration Canada
▶ Canadian Real Estate Lawyers
▶ Canadian Real Estate Association
▶ Advice on Moving to Canada
▶ Canadian Cities
▶ Canada Revenue Agency
▶ Investing in Canada
▶ Taxes for Non-Residents - Canada Customs and Revenue Agency

35. PART II: Canadians Buying in
The United States.
▶ According to NAR, Canada and China have been
the fastest growing source of international clients
for REALTORS
▶ 86% of Canadians pay cash and
14% finance
71 %
Canadian buyers
purchased properties in
Florida, Arizona, and
California

36. Recommended Reading

37. Canadian Home Buyer Preference
Florida
38%
California
8%
Arizona
24%
T
exas
6%
Hawaii
6%
Other
18%

38. Canadians Buying in US

39. What Canadian Buyers are Looking For
Central
City/urban
12%
Small
T
own/Resor
t
47%
Suburban
Area
41%
Detached Single-
Family
93%
Other
2%
T
ownhouse/
Condo/Apt
5%

40. Details on Markets in Canadian Cities

41. Business in Quebec
▶ Over 900,000 immigrants live in Quebec
▶ 24.7% from Asia
▶ 22.1% from America
▶Aerospace sector of
Canada
▶ Home of Cirque du Soleil

42. Business in Quebec: Montreal
▶ Population: 1.65 million
▶ Average house price: $329,339
▶ Significant sale of condos in downtown Montreal
▶ Many presales sell-outs
▶ Buyers’ market – slow down perhaps this year

43. Luxury Real Estate in Quebec
▶ Luxury single family
homes start at $3
Million in Montreal
▶ Minimum 5000
square feet
▶ Strong
international
influence
51%
49%
Foreign Investment
Domestic
Internation
al

44. Business in Ontario
▶Ranked top in global competitiveness, quality of
life and innovation
▶ Population: 14 million
▶ Average housing price: $400,000.00

45. Immigrants in Ontario
▶According to Statistics Canada over 3.5 million
immigrants live in Ontario
- 41% from Asia
-16% from Americas
41%
38%
16%
3% 2% Asia Europe
Americas Africa
Other

46. Business in Ontario - Toronto
▶ One of the most multicultural cities in the world
▶ Toronto Region Board of Trade: Canada's largest local
chamber of commerce
▶ Banking and market center of Canada
▶ High Demand luxury homes over 2 Million
▶ High demand for large luxury homes- 8000 SF

47. Business in Saskatchewan
▶ Average house price: $300,000
▶Strong resource economy for potash and oil
▶Fast growing economy is attracting investment

48. Business in Alberta
▶ Strong economy and increasing revenue
▶ Canada’s largest producer of oil and gas
– 6th largest in the world
▶World’s second largest exporter and fourth largest
producer of natural gas.

49. Real Estate in Alberta
▶ Average house price: $400,000
▶Large amount of wealth in Calgary driving
luxury real estate market
▶ Luxury Homes start at $2 M

50. Business in BC - Vancouver
 Average house price: $800,000
 Most expensive city in North America
 Port Metro Vancouver:
Asia-Pacific Gateway
and Corridor
▶ Ranked 1st for quality of living in North America

51. Vancouver Luxury Real Estate Market
▶ Average starting price: $3 Million
▶ Ranges from $2M - $4M depending on location
▶ Sought after neighbourhoods: Shaughnessy, Point Grey, Kits,
Kerrisdale
▶ Market influenced by foreign buyers
▶ 40% of SFH market
▶ Chinese purchase secondary or
investment properties in Vancouver
▶ Surge of buyers from
the U.S. & Iran
60%
40%
Foreign Investment
Domestic
International

52. Business in BC - Richmond
▶ 50% Asian population – largest in Canada
▶Average price of a detached home in Richmond is
over $1 Million dollars
▶ Very low crime rate

53. Business in BC - Whistler
▶Resort-style living attracting more long-term buyers
▶ Luxury real estate $2 M
▶ 25% international buyers
▶ Tourism based economy

54. Conducting Business with Canadians
▶Opportunity to network and establish referrals
into Canada
▶ Thanks to My Networks who shared valuable
resources for this presentation: FIABCI Canada,
AREAA, CIPS Members, Ursula Morel, Canada.

55. Thank you!
Contact: Sajad Ahmed & Dr. Naveed Siddiqui
▶ Website: www.sajadahmed.com
▶ Cell +1 (647) 531-5555
Property company.
Buy sell invest in Real Estate.
sajad286@gmail.com
https://Listwithus.ca
https://mycondobrokers.com
Presented by
Sajad Ahmed & Dr. Naveed Siddiqui
www.sajadahmed.com
Disclaimer:
All Information is for educational purpose only