Property Trade
FX International provides you with the latest information about the real estate developments in Canada, which will assist you in the real estate investment, property rental and management. By effectively integrating the latest real estate information resources, we provide you with professional and personalized services; we committ to meeting the increasing demand of our clients based on the real estate.
House Purchase
Developments of Canadian Real Estate Industry
Canada belongs to one of the seven major industrial developed countries in the world, and it is nominated as “the most livable country in the world” for four consecutive years by the United Unions. At the same time, Toronto was regarded as one of the most suitable city for living in the world with superior living conditions, good public security environment, social stability and improved legal system.
In recent years, with the ease of study and immigration policy, more and more overseas students and talents have gone abroad to seek development, and an increasing number of rich and middled-class people invests in the real estate property abroad in a hope of capital appreciation of property in the future. Unlike the regulations in many other countries, the ownership of Canadian properties is permanent, which can be passed on to the future generations. Also, Canada’s houses have the ownership of land so that the private land and property management cannot be controlled by the government.
Canadian Real Estate Policy
The real estate preferential policy and loan interest rates in Canada are better than those of other European and American countries As an international metropolis, Toronto’s prices of real estate are quite low, and from a long-term viewpoint, there is still a huge space for rising.
Why Need a Real Estate Agent?
The Canadian Real Estate Association (CREA) was established in 1943 with more than 100,000 registered members. They play an indispensable role in the real estate transactions.First of all, Canadian real estate transactions are conducted through real estate brokers. The buyer and the seller are not allowed to contact each other directly, this is because through agents, the information of the property is more objective and unbiased. Secondly, through the real estate bureau’s internal system, the agent is able to provide more specific information about the property for the buyer. Such system allows only the real estate broker as a registered member to have access to the detailed property transaction information, which includes the seller information, the listing time, and relevant transcation data in the same area. Working with a real estate agent could protect the buyer’s self interest through effective terms.
New Immigrants
Canadian federal government’s regulation of the housing market is mainly achieved through changes in the bank’s loan policy. The two most common ways to apply a loan in Canada include: 1. Using local income loans; 2. Relying on overseas income loans. For new immigrants, when they first landed in Canada, their income level may not be sufficient enough to apply for a local loan, so many of them tend to use overseas income loans. However, due to the fact that the loan policies have been tightened in recent years, individuals with more than 20% down payment must also participate in stress tests. New immigrants who apply for loans are often require to pay at least 35% down payments. In short, it is not easy to get a mortgage in Canada right now.
Recently, CIBC announced a new policy specifically aims for new immigrants, ths policy is applicable to new immigrants who has landed within 1 year, and with at least 20% down payment plus Canadian income certificate or employer letter. However, the policy changes over time, no one could predict the new changes of the policy,thus, if you are new immigrants, you should start to seeking for properties right now and get your own house as soon as possible.
International Students
Nowadays, more and more students come to Canada to study, and many of them would choose to purchase a property. This is because they could use the property as an investment, such as they can partially rent the during their stay in Canada, or sell the property once they decided to go back to China. This investment could not only help students to reduces their accomodation fees but also effectively gain financially from capital appreciation.
For international students who do not generate a high credit score and do not have actual income, Canada also offers such students with the opportunity to purchase properties with a 35% down payment option. An additional 15% non-resident speculation tax is added when international students chooses to purchase properties. However, the governmenthas provided certain tax refund policies, individuals who satisfy the following terms are eligible to apply for refund:
- From the date of purchase, the buyer is enrolled in a full-time course of more than two years in an institution accredited by the Canadian Ministry of Education;
- The buyer has worked full time in Ontario for more than one year from the date of purchase;
- The buyer becomes a Canadian citizen or permanent resident within four years;
According to the current policy regarding the Express Entry Immigration Program in Canada, international students are eligible to apply for immigration after working in Ontario for at least one year. The government conducted the tax refund policy in a way that it encourages individuals to study and work in Canada, and helps to create more economic values for the country.
Foreign Residents
Under tighter lending policies in recent years, overseas buyers without Canadian permanent residency status are considered risky by Canadian banks. Therefore, providing only income certificates from outside the Canada contributes little to obtain mortgages from local banks, and the procedures are becoming increasingly complicated. As a result, some overseas buyers with high net worth assets can only do so by providing more overseas assets and income proof, handling overseas remittance well in advance, and placing a large deposit in a Canadian local bank account for more than 30 days as early as to buy a house.
FX International has a professional real estate brokerage team with many years of professional experience in real estate transactions. According to your housing demand, we provide you a comprehensive analysis and the latest real estate information for better communicating with the seller. We coordinate our clients to achieve the perfect negotiation of getting the ideal price. Meanwhile, we help you draft the reasonable purchase contract to protect your interests. Our purpose is to build a warm home for you!
House Sold
In recent years, many homeowners have realized the value of their investments by selling their houses, or cashing in on the sale of their homes, and moving to a more livable city to buy a new house and live a different life. There are two main forms of house selling in Canada, including private sales and transactions through real estate brokers.
Private Sales
For private sale, the seller can put up a “For Sale” sign outside his or her door, self-evaluate the property, and self-negotiate the price with prospective sellers. The whole process needs to be completed independently without any intermediary fee. However, there are many potential risks involved. For example, if the real estate appraisal is not professional and accurate, the sales price may be too high and nobody is willing to offer to purchase it, or the price may be too low and the property value is not fully realized. In addition, the publicity channels for private saless are limited, which may result in prospects not getting the corresponding sales information in a timely manner. Consequently, it requires the seller to pay more energy to take prospects to see the house and negotiate the price. Also, the terms of the private sale’s house offer are not well understood. Sometimes it involves some complicated transactions and it is easy to go wrong, which impairs the interests of both parties.
Transactions through Real Estate Brokers
For real estate brokerage trade, agent will analyze and compare the same kind of regional real estate for clients, including historical prices and professional real estate value assessment (CMA), etc. Once the seller confirms the real estate brokerage as the agent, both parties need to sign an agency contract. After the contract is signed, the agent will list the property as “For Sale” on Canada’s dedicated real estate exchange (MLS) website and put up “For Sale” signs in front of the property. The agent will also update relevant advertisements in newspapers or websites so that more prospects will see the informaiton of the sale and contact the agent to book a showing to the property if the prospect is interested in the selling house. When someone is willing to give an offer to the selling property, the buyer’s agent will send the OFFER to the seler’s agent; sometimes if there are more than one OFFER received, the seller can choose the one with the higher offer price, or the one with less conditions.
FX International have professional real estate brokerage team who are dedicated to help you preview interested and financially capable buyers, save your time and energy, and provide you with reasonable and beneficial negotiated housing prices. We will help you complete the sale of the house as efficiently as possible and achieve your ideal sale price!
Rent A House
For most of the foreigners living in Canada, to rent a house is a headache issue, but they still have to face this problem. The conditions of living environment directly affect the life quality of people and their health. Living in a house with good quality and environment can improve our happiness and the efficiency of work and study.
The most common process of renting a house in Canada is as the following:
- The real estate brokers will help provide a wealth of rental resources, help customers to compare the community’s environment, location, rental prices and other conditions. Under the assistance of the brokers, customers are able to vie the properties through online medias as well as in field inspections;
- The documents required for renting are mainly the identification document and the two-month rental fee as a deposit;
- Once customers have found the ideal property, the real estate agent will communicate with the landlord/owner to discuss the leasing issues, assist tenants to revise the OFFER and send it to the owner to determine whether to accept or not according to the conditions;
- After the owner accepts the OFFER, the tenant signs a lease agreement with the owner and pay a deposit;
- The landlord will give the tenants all necessary keys . Before the tenant confirms that there are no problems in all aspects of the property, they can move in;
FX International provides our clients with Toronto rental services, including the hunting of suitable housing sources for overseas students, new immigrants and parents. Our professional real estate brokerage will look for a variety of filtered housing information based on the demand of clients, helping them to effectively communicate with the owner, handle the relevant matters, and achieve the most appropriate price for renting the satisfactory house!