20 Real Estate Terms in Canada - List for Canadian Home Buyers, Sellers & Agents

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Are you ready to conquer the Canadian real estate market, but feeling a bit daunted by the abundance of jargon and complexities? Don't worry, you're not alone! The real estate industry can be a minefield to navigate, but with the right knowledge, you'll be able to understand the ins and outs of the market and make informed decisions.

So, whether you're a first-time home buyer, a seasoned seller, or a budding real estate agent don't let the jargon hold you back- let's unlock the secrets of the Canadian real estate market with the ultimate 20 real estate terms that you need to navigate the minefield of the Canadian real estate market and come out victorious.

20 Real Estate Terms in Canada - A Comprehensive List

Knowing real estate terms is key to being a pro in the Canadian market. It's not just for first-time buyers or sellers; it's also for sellers and real estate agents who work here but are unaware of these terms. Because understanding the lingo is what sets you up for success here. For this reason, we have words ranging in complexity from simple words to complex terms.

20 Basic Real Estate Terms & Concepts to Know

So buckle up and let's dive in deep into the real estate world.

1. Amortization:

The length of time it will take to pay off a mortgage, calculated by dividing the total mortgage amount by the annual mortgage payments. It is the period over which the loan is planned to be paid off, usually in a range of 15-30 years.

2. Appraisal:

An evaluation of a property's value by a professional appraiser. Appraisals help to determine the fair market value of a property, which is used to help set a fair price for the property.

3. Closing Costs:

The expenses associated with purchasing a property, such as legal fees, land transfer taxes, and home inspection fees. These costs can add up to thousands of dollars and are typically paid at the time of closing.

4. Conditional Offer:

An offer to purchase a property that is contingent upon certain conditions being met, such as the successful completion of a home inspection. It means that the offer is made on the condition that certain things happen, such as financing or home inspection.

5. Equity:

The difference between the market value of a property and the outstanding balance on the mortgage. It is the portion of the property that the owner fully owns, and it increases over time as the mortgage is paid down and the property increases in value.

6. Fixed-Rate Mortgage:

A mortgage with an interest rate that stays the same for the entire term of the loan. It means that the interest rate will not change for the duration of the loan, providing predictability and stability for the borrower.

7. Home Inspection:

A comprehensive examination of a property's condition by a professional home inspector. Home inspection is an important step in the home buying process, as it can help identify any potential issues or defects with the property.

8. Interest Rate:

The percentage at which the lender charges interest on a mortgage. It is the cost of borrowing money, and it can have a significant impact on the overall cost of the mortgage.

9. Land Transfer Tax:

A tax paid by the purchaser when a property is transferred from one owner to another. It is a government tax that is paid on the transfer of property ownership and varies by province.

10. Listing Agreement:

A contract between a property owner and a real estate agent that outlines the terms of the agency relationship. It outlines the services that the agent will provide, the length of the agreement, and the commission that will be paid to the agent.

Also, know the truth behind a [home listed for 1$ in the Canadian Housing Market.

11. Mortgage Broker:

A professional who acts as an intermediary between borrowers and lenders to help them find the best mortgage product. They can help borrowers find the best mortgage rate and product that suits their needs.

12. Mortgage Pre-Approval:

A conditional commitment from a lender to provide a mortgage for a certain amount, subject to the buyer meeting certain conditions. It is a letter from a lender that states that you are pre-approved for a mortgage up to a certain amount, subject to certain conditions.

13. Multiple Listing Service (MLS):

MLS or Multiple Listing Service is a database of properties for sale by real estate agents. It is a system used by real estate agents to list properties for sale, and it is a valuable resource for buyers and sellers.

14. Power of Sale:

A legal process that allows a lender to sell a property in order to recover unpaid mortgage debt if the borrower defaults on the mortgage. It is a provision in the mortgage agreement that gives the lender the right to sell the property in case of default.

15. Property Condition Disclosure Statement:

A document that outlines any known issues or defects with a property. It is a statement provided by the seller that discloses any known issues or defects with the property.

16. Real Property Report (RPR):

A legal document that shows the boundaries, dimensions, and location of a property, as well as any improvements or structures on the property. It is a detailed survey that shows the property's boundaries and any structures or improvements on the property.

17. Title Insurance:

Insurance that protects the buyer and the lender against any issues with the property's title or ownership. It protects against any hidden issues with the property's title, such as outstanding liens or encumbrances.

18. Underwriting:

The process of evaluating a mortgage application to determine whether to approve the loan and what terms to offer. It is the process used by lenders to evaluate a borrower's creditworthiness and ability to repay the loan.

19. Zoning:

Set of regulations established by local governments that determine how land can be used in a particular area, by dividing the municipality into different zones and regulating the development, density and allowed uses of the land.

20. Lease:

A lease is a legal agreement between a landlord and tenant outlining the terms and conditions of renting a property, including the rental amount, length of the lease and responsibilities of both parties.

20 Advanced Real Estate Terms & Concepts to Know

Now, let's get an idea on some of the advance terms used in the real estate industry.

1. ‘As Is’ clause

Let's learn about this real estate concept from both a seller's and a buyer's point of view.

For sellers

"As-Is" clause means property is sold in current condition, with no promises or guarantees from the seller.

  • It can be a quick and cost-effective option for sellers.
  • But, it also means that the buyer will have to take on any necessary repairs or renovations.
  • Legally required to disclose all issues with the property, including providing a detailed statement of condition, prepared by a professional, and based on an inspection.

For buyers

"As-Is" properties may come at a lower price, but they can also end up costing more if extensive repairs are needed.

  • It's crucial to do a thorough inspection of the property to reveal any potential issues.
  • Consider including a "subject to inspection" clause in the contract, which allows the buyer to back out if the inspection reveals more problems than initially disclosed by the seller.
  • Important to proceed with caution and have a solid team of professionals, including a real estate agent, home inspector, and attorney, to minimize the risk.

For more details, refer What does As-is clause mean in real estate?

2. POA (Power of Attorney)

POA is a legal document that allows you to give authority to another trustworthy person(s) to manage your property or money on your behalf.

  • The person you appoint is called your attorney, and they do not have to be a lawyer.
  • It is required that a person be ‘mentally capable’ at the time of signing a POA for it to be valid.
  • Laws, requirements, and definitions of POA vary across provinces and territories in Canada.
  • Real Estate and POA

In real estate, your attorney can manage buying or selling of real estate in your name, pay bills on your behalf, and even collect money owed to you, unless restricted to do so. Your attorney does not become the owner of your property, they can only manage it on your behalf.

Types of POA

  • General Power of attorney: Allows your attorney to manage all or part of your finances and property only while you are mentally capable of managing your own affairs. Becomes invalid if you become mentally incapable. Can be limited to a particular task or time period.

  • Continuing power of attorney: Allows your attorney to continue managing your finances and property even if you become mentally incapable to do so. Can start immediately or come into effect when you become mentally incapable.

3. MLS (Multiple Listing Service)

MLS (Multiple Listing Service) is a database of properties for sale or rent, maintained by real estate agents and brokers.

  • It allows agents to share information about properties with other agents in their area, increasing the chances of a sale or lease.
  • MLS data is only available to real estate agents and brokers who are members of the service.
  • It includes detailed information about properties, including photographs, prices, and descriptions.
  • MLS can be a powerful tool for buyers, sellers, and real estate professionals to find and market properties.

4. CCIM (Certified commercial investment member)

CCIM (Certified Commercial Investment Member) is a professional designation for commercial real estate professionals.

  • It is awarded by the CCIM Institute after completing education and demonstrating experience.
  • Recognized as mark of expertise in commercial and investment real estate.
  • Only held by a select group of professionals.
  • CCIMs are trained to analyze investment opportunities.

5. CPM (Certified Property Manager)

CPM (Certified Property Manager) is a professional designation for property management professionals.

  • It is awarded by the Institute of Real Estate Management (IREM) after individuals complete a rigorous education curriculum and demonstrate their experience in property management.
  • The CPM designation is recognized as a mark of expertise in the property management industry.
  • Only held by a select group of professionals.
  • CPMs are trained to manage and maintain properties effectively and efficiently.

6. CMA (Comparative Market Analysis)

CMA (Comparative Market Analysis) is a report that compares a property to similar properties in the same area.

  • It is used to determine a property's estimated value, and to help with pricing decisions when buying or selling a property.
  • A CMA includes information about recent sales and current listings of similar properties.
  • It also includes information about market trends, such as average days on market and sale-to-list price ratios.
  • CMA is a helpful tool for both sellers and buyers to have a better understanding of the market and make informed decisions.

7. CRE (Commercial Real Estate)

CRE (Commercial Real Estate) refers to properties used for business or investment purposes.

  • It includes properties such as office buildings, retail centers, industrial warehouses, and multifamily apartments.
  • CRE transactions are generally more complex and involve more money compared to residential real estate transactions.
  • CRE professionals such as brokers, investors, and property managers have specialized knowledge and skills to navigate the market.
  • CRE can also include special purpose properties such as hotels, hospitals, and self-storage facilities.

8. CAC (Central Air-Conditioning)

CAC (Central Air-Conditioning) is a type of air conditioning system that cools a building or home by circulating chilled air through ductwork.

  • It typically uses a central unit, such as a furnace, to cool the air and distribute it throughout the building.
  • CAC systems are often more efficient and can cool larger areas compared to individual room air conditioners.
  • It can also improve air quality by filtering and circulating air throughout the building.
  • CAC systems require regular maintenance to ensure they are functioning properly and efficiently.

9. COI (Certificate of Insurance)

A Certificate of Insurance (COI) is a document that verifies that a specific insurance policy is in effect and provides details on the coverage provided.

  • COIs are typically issued by insurance companies or their agents and are used to provide proof of insurance to third parties, such as lenders or landlords.
  • COI includes: insured name, policy number, coverage type/limits, and insurance company/agent contact information.
  • Some COIs may also include additional information, such as endorsements or exclusions to the policy.
  • COIs are not the same as the insurance policy itself and do not provide all of the terms, conditions, and exclusions of the policy.

10. CMHC (Canada Mortgage and Housing Corporation)

Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation of the Government of Canada.

  • Its primary function is to provide mortgage loan insurance to Canadian banks and other lending institutions.
  • This insurance helps protect lenders against losses if a borrower defaults on a mortgage loan.
  • CMHC also conducts research and provides information on housing markets and trends, as well as housing-related programs and services.
  • CMHC is funded by premiums paid by borrowers who take out mortgage loans that are insured by the corporation.

11. CMA (Comparative Market Analysis)

A Comparative Market Analysis (CMA) is a report that compares a property to similar properties that have recently sold or are currently on the market.

  • It is used by real estate agents, appraisers, and homeowners to estimate the fair market value of a property.
  • A CMA typically includes information such as the property's location, size, condition, and features as well as information on comparable properties, including their sale prices and other relevant details.
  • It is based on recent sales data, it helps in determining the current market value of a property
  • It is used to set the price for a property that is for sale or to be appraised.
  • A CMA can also be used to evaluate the potential return on investment for a rental property or a fix and flip investment.

12. ARV (After Repair Value)

After Repair Value (ARV) is a term used in real estate investing to refer to the estimated market value of a property after any necessary repairs or renovations have been completed

  • It is used to determine the potential profitability of a fix-and-flip investment or the maximum purchase price for a property being considered for a rental or rehab project.
  • ARV is calculated by taking the estimated market value of a property in its current condition, subtracting the cost of repairs and renovations, and then adding any potential value-adds such as an addition or a finished basement.
  • It is an estimate of the potential of the property in the future after the repairs are done
  • It helps in determining the maximum amount to be spent on the renovation and property purchase, so it doesn't exceed the potential value of the property after renovation.

13. LTV (Loan to Value)

Loan-to-value (LTV) is a ratio used in the mortgage industry to indicate the size of a loan compared to the value of the property being used as collateral.

  • It is calculated by dividing the loan amount by the value of the property.
  • It is used by lenders to determine the risk of a loan and the creditworthiness of a borrower.
  • A higher LTV ratio indicates a higher risk to the lender, as the borrower has less equity in the property.
  • LTV is used to determine the minimum down payment, interest rate, and maximum loan amount
  • Lenders usually have different LTV ratios for different types of properties and loans.
  • A high LTV ratio may require a higher interest rate or mortgage insurance.

14. Cap Rate

The Capitalization Rate, or Cap Rate, is a measure used in real estate investing to indicate the rate of return on a property based on its income and purchase price.

  • It is calculated by dividing the property's net operating income by its current market value or purchase price.
  • Cap Rate is a metric used to compare the potential returns of different properties.
  • A higher cap rate indicates a higher return on investment, and a lower cap rate indicates a lower return.
  • Cap rate is used to evaluate the performance of a property and its potential as an investment.
  • Cap rate can be used to compare the yields of different properties and areas, even though it is a ratio, it does not take into account the cost of debt.

15. GDS (Gross Debt Service)

Gross Debt Service (GDS) ratio is a measure used by mortgage lenders to determine a borrower's ability to afford the mortgage payments on a property.

  • It is calculated by dividing the total mortgage payments, including principal, interest, property taxes, and heating costs, by the borrower's gross income.
  • GDS is one of the two ratios used to qualify borrowers, the other being TDS (Total Debt Service).
  • It is used to evaluate the borrower's ability to meet the housing cost, it is usually expressed as a percentage.
  • Lenders usually have a maximum GDS ratio, typically between 31% and 39%
  • A high GDS ratio may indicate that a borrower is over-extended and may have difficulty making mortgage payments.
  • A low GDS ratio may indicate that a borrower has a lower risk of defaulting on the loan.

16. TDS (Total Debt Service)

Total Debt Service (TDS) ratio is a measure used by mortgage lenders to determine a borrower's overall ability to afford the mortgage payments on a property, as well as their other debts and expenses.

  • It is calculated by dividing the total monthly debt payments, including mortgage payments, credit card payments, car loans, and any other debts, by the borrower's gross income.
  • TDS is one of the two ratios used to qualify borrowers, the other being GDS (Gross Debt Service).
  • Lenders usually have a maximum TDS ratio, typically between 42% and 44%
  • A high TDS ratio may indicate that a borrower is over-extended and may have difficulty making mortgage payments and other debts.
  • A low TDS ratio may indicate that a borrower has a lower risk of defaulting on the loan and other debts.

17. JT (Joint Tenancy)

Joint Tenancy is a type of co-ownership of property where two or more individuals own the property together.

  • Each owner holds an equal and undivided interest in the property.
  • Joint tenants have the right of survivorship, meaning that if one of the owners passes away, their interest in the property passes automatically to the remaining owners.
  • In a joint tenancy, all parties have equal rights and responsibilities on the property
  • Each joint tenant has the right to use the entire property.
  • All the parties need to agree to sell the property or make any changes to it.
  • In case of death, the share of the deceased tenant automatically goes to the surviving tenant/s.

18. TIC (Tenancy in Common)

Tenancy in Common (TIC) is a type of co-ownership of property where two or more individuals own the property together, but each has a distinct and separate share of the property.

  • No right of survivorship, meaning if one owner dies, their share does not automatically pass to the remaining owners.
  • Allows multiple parties to invest in real estate together or pass assets onto beneficiaries.
  • Each tenant owns a specific percentage of the property and can sell or dispose of their share.
  • Tenants have right to use entire property, but cannot sell or make changes without agreement of other tenants.
  • In case of death, share is passed on according to will or testamentary disposition, not automatically to surviving tenants.
  • Different from Joint Tenancy which has equal shares and right of survivorship.

19. Lien

  • A lien is a legal claim on a property that gives a lender or other creditor the right to seize the property if the borrower or property owner fails to fulfill their obligation.

  • Liens can be placed on property for unpaid debts, taxes, or other financial obligations.

  • Liens can be either voluntary, such as a mortgage, or involuntary, such as a judgment lien.

  • Liens are recorded in the public records, this means that they are visible to anyone who searches. the records.

  • When the property is sold, the lien must be paid off before the sale can be completed.

  • If the lien is not paid off the property may be foreclosed or seized by the creditor.

20. Ontario Agreement of Purchase and Sale

The Agreement of Purchase and Sale (APS) is a legally binding contract between a buyer and a seller for the purchase of a property in the province of Ontario, Canada.

  • Outlines terms and conditions including purchase price, closing date, and contingencies.
  • Prepared by a real estate agent or lawyer, reviewed and signed by both parties, and a copy provided to each.
  • Includes schedule of chattels and fixtures, closing date, and contingencies, if any.
  • Legally binding contract, both parties have legal obligations and rights related to the sale.
  • Buyer typically pays deposit held in trust until closing.
  • Starting point for completion of sale transaction and ownership transfer.

Knowing the Canadian Real Estate Concepts

The understanding of the real estate terms specific to Canada is essential for home buyers, sellers and agents in order to navigate the market and make informed decisions.

Being familiar with terms such as CMHC, ARV, LTV, Cap Rate, GDS, TDS, JT, TIC, CMA, APS, and others, can help you understand the mortgage process, evaluate properties, and negotiate the terms of a sale.

Whether you're a first-time home buyer, an experienced investor, or a real estate agent, having a solid understanding of these terms will help you make the most of the Canadian real estate market. Did we miss any important term here? Do you wish to include any other interesting concept on real estate in Canada, do comment and share your views.


Last Updated: 

2023-04-11

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Write your comment

I agree with the details given though have some doubts how easy the processes are and if there is any fine print involved

by

arpan

, 2023-05-08T03:22:29.938Z

That's quite an informative and detailed post for a newbie looking to learn about real estate terminologies and different concepts!

by

harleen.ishu

, 2023-03-24T14:32:45.364Z

That's quite an informative and detailed post for a newbie looking to learn about real estate terminologies and different concepts!

by

harleen.ishu

, 2023-03-24T14:32:43.716Z

That's quite an informative and detailed post for a newbie looking to learn about real estate terminologies and different concepts!

by

harleen.ishu

, 2023-03-24T14:32:40.802Z
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Can New Immigrants Buy a House in Canada?

Are you a newcomer wondering, **Can a new immigrant buy a house in Canada?** We have the answers to your query. Moving to Canada with your family is a big step, and buying a new home there can be challenging. That is why many banks and lenders offer mortgage options for **new immigrants** to help them get settled. According to reports, the rate of immigrant homeowners has surpassed Canadian-born counterparts. Therefore, buying your own home as an immigrant in Canada is achievable.  Nothing beats the feeling of getting the keys to your first home in Canada as a new immigrant. But empowering yourself to make the best decision about your new home is very important.  What is an Immigrant Mortgage? ------------------------------ An immigrant mortgage is a special [newcomer mortgage program](https://fintrakk.com/mortgage-new-immigrants-canada-newcomer-programs/) offered by banks for new immigrants in Canada. These programs help them get a mortgage even when they do not meet the requirements for a regular mortgage. New immigrants in Canada are allowed to buy a home, even if they have just immigrated to the country.  They also qualify for a mortgage as long as they meet the standard financial requirements. As a new immigrant, navigating the rules and regulations can get overwhelming. So, we have put together a detailed guide to everything you need to know about buying a house in Canada. Why it's difficult for New Immigrants to get Mortgage approved? --------------------------------------------------------------- Things are not that easy as they seem to be! As a [**new immigrant to Canada**](https://getnewhouse.ca/blog/why-is-immigration-good-for-canada/), it's difficult to get your mortgage approved. Let's see why so. ### 1\. Lack of Canadian Employment History One of the requirements for eligibility for a regular mortgage in Canada is Canadian employment history. Many banks want to ensure you’ve been working in the country for at least two years.  These show that you have a stable level of income. ### 2\. Canadian Credit History An established credit history shows how consistent and responsible you are with your finances. Banks need a credit report to see how you handle your debt. They want to know if you have missed any payments or made late payments. So, new immigrants with no credit history can face challenges. Eligibility for a Mortgage as a New Immigrant in Canada ------------------------------------------------------- Let's see how new immigrants are eligible to get mortgage approval. ### 1\. Migrated to Canada within the last 5 years You must have immigrated to Canada within five years to be considered a new immigrant. Have you been staying in Canada for more than five years? If yes, you are no longer considered a new immigrant. ### 2\. Established Legal Status in Canada New immigrants with a temporary or permanent residence are eligible. Those with a non-permanent resident with a work permit are also eligible. ### 3\. Working full time for 3 months New immigrants do not need to have two years of employment history to get a mortgage. However, they must have at least three-month full-time employment history. You will need at least three months of full-time employment history. These laws exclude those that are relocated to Canada by their current employer. ### 4\. Have a 5% Down Payment  A 5% down payment is mandatory for a new immigrant to get a house in Canada. These down payments also vary from one agent to another. For example, some lenders may require a higher down payment if the house price is over $500,000. ### 5\. Meet Qualification Ratios Your debt service ratio shows the percentage of your income that pays your debt. The higher this ratio, the more difficult it is to get a mortgage. This is because you are spending more of your income on service debt.  How to Buy Your First House in Canada? -------------------------------------- Are you wishing to buy your first house in Canada? Here are few things to guide you. ### 1\. Have a Budget  According to reports, the average house prices have sky-rocketed in Canada in the past few years. This price is due to the astronomical cost of houses in places like Vancouver and Toronto. However, the price of houses are cooling down a bit due to [**high benchmark interest rates**](https://getnewhouse.ca/blog/what-are-best-fun-activities-in-toronto-in-ontario-in-canada-for-adults) and other regulations. Keeping this in mind, new immigrants must have a budget when opting to get a house mortgage. They should know the down payment and monthly housing payment they can afford. Therefore, having a solid budget helps you understand how much house you can afford. ### 2\. Mortgage Approval Process Mortgage approval helps estimate your potential mortgage payments. The process of getting a mortgage approval varies from state to state. It also depends on your eligibility. Most banks and mortgage lenders approve the maximum loan you can qualify for. So it is important to understand the requirements at your stage.  New immigrants must provide their income, assets, debts, and current employment information to get approval. After submitting this information, the bank or lender will evaluate the application. The application will be approved if they are qualified and rejected if they are not. ### 3\. Search for a Perfect House It is time to search for your dream home. Your mortgage approval often determines the kind of house you will search for. As a newcomer, it is advisable to partner with an experienced real estate agent. Ask your neighbours and friends if they know any trustworthy realtor that can help you through the home buying process. ### 4\. Get Home Inspection Done Home inspections help protect the buyer from any potentially serious and dangerous problems in the building. Therefore, it is paramount. But you will need to pay a fee to inspect the house. Your realtors or mortgage lenders can help you find a qualified home inspector if you don't have any. And yes, home inspection is very crucial part of the buying process. So, don't think of missing it out to save some money! ### 5\. Make an Offer After inspecting the house, it is time to make an offer on the property. Making an offer in Canada requires putting down a deposit. However, this deposit is different from your down payment. The deposit shows the seller you are serious about buying the property. Your deposit will be added to your down payment when you close on the house. But it is non-refundable if you walk away.  ### 6\. Sign the Papers Buying and finalizing your house mortgage requires a lot of paperwork. You must first finalize your financing options and get your mortgage formally approved. These can be completed within a few weeks. Ask your realtor for help when navigating through the paperwork to ensure transparency. And here you are ready for getting the possession of your dream house on closing day! Buying Home as a Newcomer to Canada ----------------------------------- Canadian banks keep on updating their eligibility requirements with the newcomer mortgage program. So, you must be aware of the latest changes applicable. But, you will need to meet the basic criteria of [**home buying in Canada**](https://getnewhouse.ca/blog/renting-vs-buying-home-canada-better/) before fulfilling your housing dream.

Why is Immigration good for Canada?

Are you planning to immigrate to Canada? Great News! But, have you ever analyzed, **Why is Immigration good for Canada?** Let's understand why Canada welcomes more people and why it will keep doing so in the coming years. Immigration to Canada --------------------- **Immigration to Canada** has increased since the anti-immigration scandals and policies in the United States. Many immigrants are now choosing Canada as a place to start a new life. These have put the country on the world stage as an alternative place to live their dreams. Canada has always been a country that welcomes immigrants. But the United States' recent approach to immigration has led more immigrants to turn to Canada as an alternative. Why Immigration is good for Canadian Economy? --------------------------------------------- Read on as we explain why immigrants are beneficial to Canada's economy. 1\. Boost the Canadian Economy ------------------------------ The number of people working and paying taxes in every country is often the strength of its economy. Immigrants fill gaps in the labour force, pay taxes, and spend money on goods, housing, and transportation. The money helps in funding the country's public services. Canada needs qualified people to fill in various vacancies across its different provinces. Professionals or investors, whoever comes will be boosting the Canadian economy in one way or the other. 2\. Meet Labour Market Needs ---------------------------- Canada’s labour force has continued to grow every year due to immigrants. If it weren’t for immigrants, employers would have trouble finding enough qualified workers to fill available jobs. This is because Canadians are living longer and having fewer children. More people are also retiring, and there are fewer students in schools. These have limited the Canadian-born potential workers. Moreover, there has been an acute shortage of staff in a number of fields. So, the immigrants coming to Canada will help reduce this gap. 3\. Improve Health and Social services -------------------------------------- Many immigrants in Canada are young and economically active. They contribute more than they receive in benefits over their lifetime. According to reports, more than 335,000 immigrants work in health-related occupations. 20% of people as sports coaches in Canada are immigrants. One-third of people working in scientific research and development services are non-Canadians. Further, immigrant doctors, nurses, other staff, etc. can contribute in improving the stressed healthcare system in the country. However, this is possible after attaining the necessary qualification and experience. 4\. Sustain Canada's Education System ------------------------------------- International students contribute more than $21 billion to the Canadian economy every year. These include student spending and tuition. This is more than Canada’s exports of auto parts and lumber. International education is also an important pillar of Canada’s long-term competitiveness. More than 20% of all students enrolled in maths, computer, and information sciences programs are non-Canadians. Also, 15% of students enrolled in architecture, engineering, and related programs are international students. These expose Canadians to new cultures and ideas. It also stimulates innovation and develops cross-cultural competencies in the country. And, a number of these students stay on work permits or become Permanent Residents and then citizens. So, gradually they become a crucial part of the country's growth. 5\. Improve Trade Ties ---------------------- Many immigrants in Canada are entrepreneurial. They create jobs for Canadians and non-Canadians in all sectors of the country. These include construction, health care, retail trades, professional services, and many more. Immigrants have a desire to import goods from their home countries. They also export more because of their networks in their home countries. These broaden the variety of imports to export Canada, improving trade ties. Why Immigration is important for Canada? ---------------------------------------- Talking specifically, immigration is essential for the progress of a developed country like Canada. Here are the reasons to justify it. 1\. Support Ageing Population ----------------------------- The Canadian government uses the income tax paid by people working in Canada to support retired Canadians. Immigrants working in Canada have helped keep the economy growing and maintain its commitments to retired workers. Without immigrants, younger Canadians would pay more income tax per person. According to reports, 80% of working immigrants are under 45 years. This means they will have plenty of working years. These will also sustain the ageing Canadians 2\. Adjust to Canadian Society ------------------------------ The earnings of immigrants often match those of an average Canadian after a few years. These give them a sense of belonging. Some economic immigrants also catch up much more quickly within their first year. These make them more active in Canadian society, and many of them are members of social organizations. 3\. Real Estate Investment in Canada ------------------------------------ The great thing about investing in real estate in Canada is that it has no shortage of options. You can buy the property and manage it yourself. You can also take a hands-off approach and invest in a fund. Ultimately, you will find a method that fits your budget and schedule. Let’s look at the common ways to invest in real estate to know which ones might be best for you. ### Buy a House When you [**buy a home as new immigrant**](https://getnewhouse.ca/blog/can-new-immigrant-buy-house-in-canada/), you are putting your money in a long-term investment called _equity_. As your home increases in value, your equity increases. Also, you get a tax exemption for capital gain if you live there for most of the year. ### Buy Commercial Properties Investing in commercial property means buying and renting out space where people will work. Commercial property includes malls, shopping centres, industrial complexes, grocery stores, and offices. But it requires a large upfront investment. ### **Rent out Residential Properties** Becoming a landlord is not a bad idea as more Canadians are renting for long periods. As a property investor, you could rent out single-family homes, condos, apartments, duplexes, or even townhouses. These produce extra cash flow, and you could also benefit from the long-term appreciation of your property. **Real estate investment** could be a smart choice as an immigrant in Canada. You can also diversify your investments and create a solid stream of income till your retirement. You may also like to explore [**Best Place in Canada for Indian Immigrants**](https://getnewhouse.ca/blog/which-is-the-best-place-to-live-in-canada-for-indian-immigrants) Immigration in Canada --------------------- To conclude, we can say that immigrants contribute immensely to the Canadian economy. Not only do immigrants to Canada fill in the labour shortage gaps, but play a vital role in the country's progress.

How much commission do real estate agents make in Canada?

Real estate will probably be the most expensive purchase you ever make especially if you live in Canada. And the real estate commission you pay when you sell will probably be the largest fee you ever incur in your lifetime. Because both the buyer and the seller want a satisfying deal, the buyer wants to buy at a price that is very reasonable, while the seller wants to get the best possible price. So here come real estate agents, who set up real estate deals by bringing together buyers and sellers and negotiating on their behalf. These agents are typically paid entirely through a commission, so today we'll look at how much commission real estate agents make in Canada. ## How much commission do real estate agents make in Canada? The deal primarily involves two agents: the listing agent, who represents the seller, and the buyer agent, who aids in the sale of the property by bringing a buyer. The commission paid to a real estate agent in Canada is a percentage of the home's sale price, and it is typically paid by the seller, first to the listing agent, who then distributes a portion of the commission to the buyer's agent. Therefore, when it comes to commission, real estate agents in Canada are not subject to any mandated or fixed commission rates.**The commission rate in Canada varies by province and mostly ranges from 3% to 7% of the sale price**. The commission, however, is only paid once the property has been sold; prior to that, all of the services provided by the agent are typically provided free of charge. Strange but true! The top 10% of agents in Canada make more than 10 sales per year. **Real Estate Agent Commission in Different provinces of Canada-** ![Real Estate Commission in Canada.png](https://s3.amazonaws.com/assets.getnewhouse.ca/Real_Estate_Commission_in_Canada_4c56b76d26.png) ## Real estate agents Commission in Canada Real estate commission rates can be negotiated depending on the property and market. Some agents might consent to lower upfront fees while others might not. Therefore, the commission paid to agents is typically around 5% of the selling price, which is typically split equally between the listing agent and the buyer agent. Each agent will then give the broker's share, which is usually 30% of the agent's commission.

Which are the most affordable Housing Markets in Ontario?

It's no secret that since the start of the pandemic, the Canadian real estate market has been sky-rocketing. Everyone who immigrated to Canada during those two years saw a rise in housing costs across the country. Canadian residents were even more privileged to be in the thick of things. In Ontario, we see that people struggle to find affordable housing. Therefore, in order to assist those looking for new homes, we will now list Ontario's most affordable housing markets. ## Which are the most affordable Housing Markets in Ontario? In Ontario, the price to rent or purchase a home varies according to its dimensions, location, and state. These cities were selected primarily based on their quality of life, proximity to necessary amenities, and the prices of available homes and apartments, even though they may not be the statistically least expensive places to live in Ontario. **1. Windsor** Windsor is the southernmost area on our list today. The average home price in this area is $674,637, which is not far from the national average. Prices here increased significantly in the previous year as people moved away from larger urban centers. At this price, the monthly mortgage payment would be $3,244, or 54.18% of the typical income in the neighborhood. **2. Thunder Bay** Homes in Sudbury are still significantly less expensive than the national average, despite the fact that prices did increase significantly over the past year. Low supply is currently the main issue the region is facing. In Ontario, Thunder Bay is the region with the best prices. Mortgage payments of $1,783 per month only account for 29.78% of the typical area income, which is $370,761 for a typical home. **3. Sudbury** Sudbury is the largest city in the province in terms of land area! However, the cost of homes there is not the highest. Currently, the price of the typical Sudbury home is $498,939. A $2,399 monthly mortgage payment equals 40% of the typical income in the neighborhood. **4. North Bay** The City of North Bay is a thriving community located in northern Ontario, Canada. It is surrounded by two lakes close to forest trails, and just a 45-minute flight from Toronto.Current North Bay stats indicate an average house price of $261,000. **5. Peterborough** The average monthly mortgage payment in Peterborough takes up 24.2% of a couple's take-home pay based on an average property price of $287425 and an average yearly salary of $33,140. This is below the national average, which is 27%. ## Most affordable Housing Markets in Ontario These are areas in Ontario's most expensive regions where you can live affordably and with a high standard of living. Also note, these prices and costs are subject to change owing to the fluctuating housing market, rising interest rates and buyer and seller preferences. What do you think? Which is the most affordable city in Ontario, Canada? Don't forget to have a look at the [Best Cities to Live in Ontario](https://getnewhouse.ca/blog/top-10-best-cities-to-live-in-ontario-canada). Feel free to discuss any real estate queries.

Can a non-resident get a mortgage to purchase a house in Canada?

The Canadian real estate market is open to both residents of Canada and non-citizens who reside abroad. There are no restrictions on the kind or quantity of real estate that may be bought in Canada. As a result, a lot of people are interested in buying real estate in Canada but are unable to do so due to a lack of available funds because buying a home or piece of property can be very expensive. Therefore, the majority of people require bank financing or a mortgage in order to buy a piece of land or a house. So, today will determine whether a non-resident can get a mortgage to buy a home in Canada or not. ## Can a non-resident get a mortgage to buy a house in Canada? Yes, non-residents who want to purchase a home in Canada can apply for a mortgage there. Although the interest rates are very similar, Canadian banks frequently demand a larger down payment from non-residents than they do from residents. A **minimum of 35% of the home's value is typically required as a down payment** but these requirements may differ from bank to bank, with some being stricter than others. However, in addition to the down payment, non-residents will often have to show the following as well: - Employment verification letter (including income verification) - Bank statements as proof of deposit(at least three months) - Six months of financial statements or an international credit bureau report - A Canadian bank account from which mortgage payments can be made. There are several other lenders that offer mortgages. These lenders can offer a mortgage of up to 65% of the property’s value. You will also need a reference letter from your bank, bank statements for the previous three months, credit information, and tax returns to prove your ability to pay the mortgage. Additionally, these different lenders may offer comparable products with different interest rates and terms. To make sure you're getting the best mortgage product for your needs, speak with several lenders. Canada has substantial expat communities as well as many foreigners that visit for vacations, employment, or study for a short time. Anyone can purchase real estate in Canada, whether they are a citizen, a resident, or a non-resident. This means that you will be able to purchase land in Canada even if you are a non-resident who resides permanently in another nation. But a frequent query that many individuals have is whether they must travel to Canada in order to purchase real estate while they are non-residents. So today we'll find out if you have to be physically present in Canada to purchase a property or not. ## Being a Non-resident, do I need to come to Canada to buy a property? There are no restrictions on non-resident investors buying real estate or businesses in Canada. You are thus free to buy houses, businesses, commercial properties, or agricultural land. There is no requirement for residency or even physical presence in Canada. You can, in fact, look for properties online from anywhere in the world, work with an agent to do so, and even make a purchase. However, you will need to travel to Canada at least twice if you want to buy a property there. The first time is to open a Canadian bank account so you can get Canadian financing. The second time is to sign all of the necessary paperwork. Foreign homebuyers are not permitted to grant powers of attorney for the purpose of remotely signing real estate documents. **Important:** Until recently, anyone could purchase real estate in Canada. But, after the introduction of Foreign Home Buyer Ban effective from January 2023 any non-permanent residents and non-citizens won't be allowed to purchase residential property for a period of 2 years. ## Do you need to come to Canada to buy a property? You can virtually anywhere in the world see a property online or by working with an agent to do so, and even make a purchase. However, there are specific phases of this process where you'll need to visit Canada, such as when you have to open a bank account, which, as we previously stated, is required for the purchase of real estate. ## Non-resident can get a mortgage to purchase a house in Canada Yes, non-residents can get a mortgage in Canada to finance the purchase of a home in Canada. And as far as mortgage interest rates go, both Canadians and non-residents are subject to the same rates as long as they meet the requirements for mortgage eligibility.

Will The Housing Market Crash in Canada? Reasons

Looking at the current scenario, you might be wondering, **Will The Housing Market Crash in Canada?** Not sure, which way the Canadian real estate market is heading? Here we discuss how the housing market boom is winding down and how it impacts home buyers and sellers. Canadian Housing Market ----------------------- Analysts say that Canadian household prices will fall by up to 20% this year as rising interest rates impact the country's thriving real estate industry. Mortgage rates are expected to rise once more as the Bank of Canada vigorously raises interest rates to combat spiraling inflation. Economists predict that higher borrowing rates will cause significant price drops in some of the most volatile markets. The COVID-19 pandemic sparked a surge in activity in the Canadian housing market. The combination of lower interest rates and historic fiscal support urged many Canadians to update their accommodation. As a result, nearly all metrics of housing market activity skyrocketed. The increase in housing-related borrowing, expenditure and investment helped prevent worse economic and financial outcomes during the subsequent recession. Recent Boom in The Housing Market --------------------------------- Who could have anticipated that a global pandemic would be sending the Canadian real estate market into hyperdrive? After breaking sales numbers across the country in 2020, those records were broken again in 2021, as demand continued to surpass the number of available properties, pushing up costs. Add in rising inflation, and it will take "years" for the market to rectify itself and come back to pre-pandemic levels, according to the government's December financial update. With each passing month, Canada's red-hot property market rages on, showing no signs of abating. More than 580,000 residences were bought and sold in the first ten months of 2021 alone, outpacing the total for the entire past year, when a record 552,423 homes changed hands. Overall, the nationwide MLS Home Price Index ended the year up a record 25.3% from the previous year. How The Canadian Housing Market is stabilizing? ----------------------------------------------- The real estate market is now displaying signs of cooling. In September, house price appreciation slowed to its weakest pace in seven months. Permits to build and home sales appear to have exceeded in March, with data from the previous five months indicating a visible slowdown. Furthermore, raw material prices are responding to normalizing demand. The second-quarter GDP report revealed a significant decrease in commissions and fees regarding sales activity. It is coherent with Canadian Real Estate Association data, which shows a 15% year-over-year decrease in total transactions. The market's supply side is becoming depleted. The COVID-19 crisis drove many Canadians to purchase new residences, with low-interest rates and a flood of fiscal assistance inspiring high demand. Aside from the historically low borrowing rates, pandemic-induced shifts in choices drove potential buyers to seek out larger homes. However, with the mass acceptance of vaccination and adjusting to the new normal, this dynamic appears to be nearing its end. House price growth is now starting to slow. Increases in new-home prices over the previous year peaked in May. Interest rates remain expected to rise as the Federals reduce its capital spending. It is anticipated that the bank's monetary stimulus programs will end in early 2022, but lawmakers will allow investments to mature off the income statement rather than engaging in a full hinge of selling securities. The end of the programs will mark the first interest rate inflexion point. Factors Contributing to Slowdown of Housing Boom in Canada ---------------------------------------------------------- Some of the crucial factors to note are: ### 1.Rapid growth in the last two years One of the main reasons people see the Canadian housing market bubble as an obvious danger right now is the market's speed over the last two years. While prices have been rising for decades, we saw an unparalleled acceleration in 2020 and 2021. Simultaneously, interest rates were good enough to allow Canadian consumer debt to reach new highs, making us even more susceptible to potential economic shocks. There is the psychological component that has been observed in recent years of people wanting to buy for fear of being left out. Not only were valuations high, but so were sales, implying that an even larger number of people purchased at high prices. While there are aspects like the mortgage stress test, there are ways around them, and these high-risk loans combined with amazingly high debts could spell trouble when interest rates rise. ### 2.Prices still have room to slip. A drop in house values is one of the factors that has been widely anticipated for the next year or two. RBC Economics recently estimated that home price growth would slow through 2022 and that home prices would fall in 2023. Higher interest rates are already impacting urban centers like Toronto, where prices are falling after reaching a peak. A drop in housing values is not the same as a bubble burst. A slow decline is preferable to continue price increases. What this does show is that there is a very real possibility that the market will falter. Things will not be as bad if the price decline is well handled and incremental. ### 3.Interest Rates and Rising Prices With record-low interest rates over the last two decades, the Canadian economy escaped the pandemic relatively unharmed. However, it also increased inflation, and we are now facing the consequences. House prices are already beginning to react as the [**Bank of Canada raises interest rates**](https://getnewhouse.ca/blog/what-does-higher-interest-mean-for-housing-market-in-canada). However, there is still plenty of unfulfilled demand to keep prices rising for the time being. As interest rates increase to fight inflation, there is a risk of a recession, which could significantly reduce activity in the Canadian market and cause many to offload, causing the market to fall. Again, it all boils down to how quickly changes can occur. ### 4.Government Rules and Regulations One of the most recent notable slowdowns in Canadian home prices occurred in 2016 and 2017 when government agencies enacted a slew of new housing restrictions to help stabilize the market. The new changes were effective for a time until home values began to rise again. This demonstrates, at the very least, that government regulation can affect buyer sentiment. Will Canadian Housing Market Crash? ----------------------------------- While the Canadian bubble could erupt this year, it appears to be a less likely scenario overall. The prices are stabilizing a bit, but the housing supply issue still exists. With massive number of immigrants pouring in the coming years, it would be interesting to watch this price correction. After all, [**new immigrant home buying**](https://getnewhouse.ca/blog/can-new-immigrant-buy-house-in-canada/) dreams become even more stronger after being here for sometime. And, houses are in limited supply! That being said, no one can predict if the market will crash or simply stabilize. Rising inflation, high interest rates coupled with reduced purchasing power will definitely impact the prospective buyers. However, as an investor, it is critical to understand the possible routes you may take. So, prepare and capitalize on opportunities while safeguarding yourself from losses. Observe the ongoing changes carefully and take wise steps in the dynamic Canadian Housing Market. _Wishing to share your opinion on the trending housing market in Canada? Fee free to discuss here._

Which Real Estate app is best in Canada?

It may be lengthy and challenging to rent a house, purchase a property or sell a home in a country like Canada. There will be numerous things that can be done and relevant information that you must remember throughout the process. Real estate apps help renters, buyers, sellers, and homeowners seeking to rent a property, recently purchased a home, or even have ended up selling their property. ## Best Real Estate App in Canada Realtor.ca seems to be one of Canada's most trustworthy and finest real estate apps. The Canadian Real Estate Association (CREA) manages and controls it and offers up-to-date details on discovering properties. It is geared toward purchasers, sellers, and prospective tenants. Realtor.ca is an excellent place to begin if you're unfamiliar with the real estate market, regardless of where you live. This app offers the most extensive collection of households in Canada. Individuals can rapidly and effortlessly polish up on one of the must-have qualities thanks to its user-friendly interaction and personalized browse filtration. Viewers can bookmark their favourite listings, make a note, or even contact a real estate broker. ## Benefits of Using the Realtor.ca App There are some of the Benefits of Using the Realtor.ca App: ### 1. Updated Information: Using the realtor.ca app, we receive up-to-date details about housing, commercial, and rental homes in Canada. ### 2. Multiple Filters: You can use Realtor.ca to refine your search and also to include features that meet your criteria, such as cost, type of housing, area, amount of bedrooms and bathroom facilities, and many more. ### 3. Mortgage Calculator - It also has a payment calculator, mortgage availability calculator, and property transfer tax calculator from Realtor. ### 4. Discover A Real Estate Agent: Individuals can search for real estate representatives on Realtor.ca by destination, title, or office. Furthermore, you could even search the real estate agents by language, which includes English, French, Mandarin, Cantonese, Punjabi, and Hindi. One can consider using this app only for discovering, as the current version is among Canada's most popular real estate apps. We can now recognize core concepts, legislation, and real estate principles. You'll have security in knowing what and how to search for red flags and exactly how to pinpoint a trustworthy estate agent. You may also like to explore [Best Handyman Services Apps in Canada ](https://getnewhouse.ca/blog/best-handyman-services-apps-in-canada) ## Real Estate Apps in Canada - Popular List 1. Zolo Canada 2. Zillow 3. Real Estate Dictionary 4. Zoocasa 5. AroundMe Real estate apps make buying and selling homes much easier for house hunters in Canada. You will find a whole lot of Canadian real estate websites and applications. Which real estate app is your favourite?

Can US citizen buy property in Canada?

It's not surprising that Canada has a thriving expat community given the vast array of opportunities the country provides. Canada is a great place to live, whether you're looking to explore the great outdoors, relocate to be near family, or seize a fantastic new business opportunity. Therefore, there are many benefits to buying property in Canada, but if you live in the US and want to buy real estate in Canada, you probably have some questions. So today we'll find out if US citizens can buy property in Canada. ## Can US citizen buy property in Canada? In Canada, non-citizens have the same ownership rights as citizens, and foreigners interested in buying real estate are typically welcomed. Therefore, if you are a citizen of the US, you can definitely buy property in Canada. Americans can own property in Canada without establishing residency there, but they must disclose their income or sale proceeds to the tax authorities of both nations. In addition, anyone buying real estate in Canada is required to pay the **Non-Resident Speculation Tax, also known as the Foreign Buyer's Tax**, which is due at closing when a foreign buyer buys a home anywhere in the province of Ontario or in certain areas of British Columbia. This tax is 25% in Ontario and 20% in B.C. ## Understanding Canadian mortgage financing before buying a home In Canada, there are two ways to pay for real estate: with cash or by taking out a loan from a lender. Whichever option you select, the depositing procedure is essentially the same as it is in the United States. It will be necessary to pay a deposit, typically within 24 hours, of the agreed-upon home purchase amount. However, if you intend to finance your purchase through a bank, be aware that you must do so through a Canadian bank and not a U.S. bank. You must provide certain supporting documentation, such as pay stubs proving your income, records of your credit history in the US and Canada (if applicable), and a letter of recommendation from your US bank outlining your financial situation in order to be approved for a mortgage in Canada. ## US citizen can buy property in Canada Foreign nationals have been allowed to purchase property in Canada until recently. But starting in January 2023, non-Canadians will no longer be allowed to purchase residential property for 2 years. However, there are notable exceptions made for permanent residents and temporary residents, such as foreign students and temporary workers. The measures are a part of Bill C-19, the Budget Implementation Act of 2022, which the federal government passed on June 23 in an effort to cool the sweltering housing market.

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