My presentation on "Doing business with Canadians in Canada and US.

1. Doing Real Estate Transactions with
Canadians In Canada & American
Presented by
Dr. Margot Weinstein, CIPS, TRC, FIABCI
CEO, MW Leadership Consultants LLC
Broker, Metropolitan Real Estate Group
Professor, Homburg Academy-UWI
Professor, REALTOR® University, NAR
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2. Quebec
Ontario
Saskatchewan
Alberta
British Columbia
 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
that ground remains frozen for most of the year. 2
 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
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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 Trade Agreement (NAFTA).
 Oil
 Motor vehicles and parts
 Industrial machinery
 Aircrafts
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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 Information Administration).
 Canada: 11th largest oil exporter, recently surpassing Mexico.
(Source: "Canada Places in Top Ten," Calgary Herald.)
 www.drmargotweinstein.com
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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.
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7.  Chinese population in Canadian regions
Immigration Trends in Canada
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8. Famous Canadians
 Hockey players
 Celebrities
 Business people: I interviewed
Isadore Sharpe Founder, Four
Seasons, and Steve Morris, Founder,
Exit Realty International
Steve Morris,
Exit Realty
https://www.youtube.com/watch?v=velg5d2cdn8
https://www.youtube.com/watch?v=KIAUe0vvIZo
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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
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10.  Part of several Trade organizations;
 North American Free Trade Association (NAFTA ) what
happens with NAFTA will 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.
Organizations in Canada
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11. Canadian Culture
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 Similarity in culture and
business. Subtle differences:
 Canadians are very polite: Say
Sorry on average 45,000 a day.
 If from U.S.. don’t say "we
Americans"
 French Canadians stand closer
and are more demonstrative
when talking.
 Personal space and body
movement or gestures differ
between the English and the
French provinces and cities.
 For French Canadians, print all
material in French and English.

12. More Cultural Differences
 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.
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13. 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
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14.  Permanent residents by country
Immigration Trends
in Canada
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15. Online Property Resources
 Properties can be found
on the internet via
property websites.
 www.rightmove.co.uk,
also feature properties
in Canada,
 real estate listing sites
based in Canada such
as www.remax.ca.
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16. Residency
 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.
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17. Canada’s Real Estate Transaction
 Real estate agents 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.
 Most candaians leave Canada live in us.
 https://www.realtor.ca/US-Visitors.aspx
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18. Facts on Canadian REALTORS®
 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. If
you’re planning on purchasing a vacation home: rules
and regulations for visitors to Canada.
 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 Revenue Agency (CRA): real
estate tax rules and regulations for American visitors.
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19. 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
National Association of Realtors and the Canadian
Real Estate Association.
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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: when a real estate agent is
representing both buyer and seller in the same
transaction. Agent promises confidentiality,
loyalty and full disclosure to both parties
simultaneous, it necessary to limit these duties
in the situation, if both arties consent
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21. Realtors Commission in Canada
 Realtors: Self-employed and on negotiable
rather than fixed commission (payable by the
seller). A purchaser can buy property using any
realtor, regardless of whether that realtor
originally listed the property. There are
usually Two realtors involved in a sale - the
seller's agent and the buyer's agent.
 The commission received upon the sale of the
property is divided between the two realtors.
 Dual agents allowed, but must declare this to
buyers and sellers.
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22. 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.
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23. 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.
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24. 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-$800. This amount varies between Provinces
depending on the complexity of the sale and the type of
property. 24

25. 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).
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26. 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'.
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27. 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.
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28. 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:
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29. 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.
 Income qualifications
www29

30. 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.
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31. 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.
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32. 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.
 Lawyer's Fees: Lawyers review the Offer to
Purchase, search the title, draw up mortgage
documents and tend to the closing details. The fee
can be $500-$800- amount 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,
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33. Transaction Costs
1. Realtor's Fees: Paid by the vendor: 3 -7% of the
home's market value. 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.
2. Appraisal Fee: Lender require a property appraisal
at your expense. The cost is around $250.
3. Survey Fee: Lender will require an up-to-date
survey. If the Seller doesn’t have a current one, pay
to have one done. Cost around $300.
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34. Transaction Costs (Cond.)
4. Home Inspection Fee around $450, is the equivalent of
a survey in the UK and other countries and is carried out at
the purchaser's request.
5. Property Insurance which covers the replacement value
of the structure of your home and its contents.
6. Service Charges between around $50 to hook up new
services and utilities.
7. 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).
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35. Tax Guide
 Canada Law (Canada Revenue Agency)
 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
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36. Guide To Invest in Canada
Resource Tax Laws in Canada. Bryant Andrus, CFP®
1-800-678-5007; bryanta@keatsconnelly.com
www.keatsconnelly.com
www.buyingrealestateintheus.ca
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37. 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
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38. 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 %
of Canadian buyers
purchased properties in
Florida, Arizona, and
California
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39. Weinstein’s Recommended Reading
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40. Canadian Home Buyer Preference
Florida
38%
Arizona
24%
California
8%
Hawaii
6%
Texas
6%
Other
18%
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41. Canadians Buying in US
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42. What Canadian Buyers are
Looking For
Central
City/urban
12%
Small
Town/Resor
t
47%
Suburban
Area
41%
Detached Single-
Family
93%
Other
2%
Townhouse/
Condo/Apt
5%
42

43. Part III: Details on Markets
in
Canadian Cities
43

44. 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
44

45. 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
45

46. 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
46

47. Business in Ontario
 Ranked top in global competitiveness,
quality of life and innovation
 Population: 14 million
 Average housing price: $400,000.004
47

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

49. 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
49

50. Business in Saskatchewan
 Average house price: $300,000
 Strong resource economy for potash
and oil
 Fast growing economy is attracting
investment
50

51. 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.
51

52. 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
52

53. 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
53

54. 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
International54

55. 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
55

56. Business in BC - Whistler
 Resort-style living attracting more long-term
buyers
 Luxury real estate $2 M
 25% international buyers
 Tourism based economy
56

57. 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.
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58. Thank you!
Contact: Dr. Margot Weinstein
 Website: www.drmargotweinstein.com
 Cell 312-656-2254; drmargot@drmargotweinstein.com
 Book available on Amazon at https://www.amazon.com/Real-Estate-
Success-Leadership-Strategies/dp/1515131254
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