REAL ESTATE IN CANADA - A TOOLKIT FOR PARLIAMENTARIANS - Canadian Real Estate Association
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REAL ESTATE IN CANADA A TOOLKIT FOR PARLIAMENTARIANS
TABLE OF CONTENTS
WORKING WITH PARLIAMENTARIANS
01 The Canadian Real Estate Association (CREA) works
with members of Parliament (MPs) and senators to help
them stay informed about the real estate industry.
REAL ESTATE & THE ECONOMY
02 Real estate is a major driver of job creation
and consumer spending in Canada.
IN YOUR COMMUNITY
03 REALTORS Care® – Making a difference
in your community.
04 FINANCIAL LITERACY
Improving financial literacy in your riding.
HOME BUYERS’ PLAN
05 One of the federal government’s most important housing
affordability programs helps make the dream of home
ownership a reality for many Canadians.
SOCIAL INFRASTRUCTURE
06 CREA is committed to working with policymakers
to renew federal leadership in housing.
FIRST NATIONS HOMEOWNERSHIP
07 REALTORS® understand the value of homeownership
in building economic stability for those who make
that choice.
MONEY LAUNDERING
08 How REALTORS® help fight money laundering
and terrorist financing in Canada.
HOME SAFETY
09 REALTORS® are committed to helping keep
your constituents’ homes safe.
CONTACT US
10 CREA can help with questions and concerns
from your constituents.
WORKING WITH
PARLIAMENTARIANS
The Canadian Real Estate Association (CREA)
works with members of Parliament (MPs) and
senators to help them stay informed about
the real estate industry.
01
WORKING WITH
PARLIAMENTARIANS
CREA is one of Canada’s largest single-industry trade
Associations. Our membership includes more than 110,000 real
estate brokers, agents and salespeople, working through over
90 real estate Boards and Associations across Canada.
CREA works on behalf of the public and its REALTOR® members to:
• Assist our REALTOR® members • Advocate policy that promotes a
to better serve their clients. vibrant and sustainable real estate
• Produce accurate, up-to-date industry, including real estate
information and analysis on property rights and ownership.
economic issues. • Enhance member professionalism
• Represent the interests of its and ethics by providing national
members to the federal government standards, including establishment
and its agencies on existing or of symbols of quality associated with
proposed legislation that will affect using CREA membership, including
those members, and/or impact brands, trademarks, MLS® and
REALTOR®.
homeownership.
110,000+ 90
REAL ESTATE BROKERS, REAL ESTATE BOARDS AND
AGENTS AND SALESPEOPLE ASSOCIATIONS ACROSS CANADA.
CREA’s efforts also allow our REALTOR® members to better serve homebuyers and the general public. Our vigilant eye on both the economy and government, plus the economic statistics and analysis we provide, enhance our members’ knowledge. This supports their business by improving the quality of advice they can provide to clients and increasing the REALTOR® value add.
ORGANIZED REAL ESTATE IN CANADA
Organized real estate in Canada Canada’s housing market is a key
operates at three different levels. component of Canada’s overall economic
CREA represents the industry at the stability and an important generator of
national and international levels by jobs and economic activity. In 2015, each
working with various government home sale will generate an estimated
departments to support a strong, $51,409 in spin-off spending. This
stable real estate sector. translates to one job for every three
transactions. MLS® home sales and
Provincial and territorial real estate purchases in 2016 will add an estimated
Associations represent the industry $26 billion in spin-off consumer spending
at the provincial level. Local real to the economy and create nearly
estate Boards are responsible for 183,000 jobs. CREA’s economists keep a
the operation of the Multiple Listing close eye on these statistics and update
Service (MLS ) system and provide
® ®
them regularly: for the most up-to-date
business services to members. numbers, please refer to the “Contact Us”
section to learn how to get in touch with
our team.
BY THE NUMBERS:
IN 2015, EACH HOME SALE WILL MLS ® HOME SALES AND PURCHASES
GENERATE AN ESTIMATED IN 2016 WILL ADD AN ESTIMATED
$51,409 $26 billion
IN SPIN-OFF CONSUMER IN SPIN-OFF CONSUMER SPENDING
SPENDING TRANSLATING TO TO THE ECONOMY AND
one job for every create nearly
three transactions. 183,000 jobs.
ORGANIZED REAL ESTATE IN CANADA
PROVINCIAL &
FEDERAL LOCAL
TERRITORIAL
PROVINCIAL REAL ESTATE
CREA
ASSOCIATIONS BOARDS
• represents the • handle membership • process memberships,
industry nationally and processing in non-Board set membership
internationally areas requirements
• promotes a national • facilitate maintenance of • operate MLS® System
legislative agenda that Board jurisdictions
• develop and implement
supports a vibrant real
• resolve disputes between rules that support CREA’s
estate sector and furthers
Boards, members from national policies
the interest of the
different Boards in the
homebuyer • enforce the REALTOR®
same province
Code and other standards
• maintains and protects
• provide continuing
standards for certification • provide arbitration
education courses
marks & trademarks services to resolve
• engage in political action disputes between
• maintains REALTOR®
activities at the provincial members
Code and other standards
level
• lobby municipal
• provides arbitration
government
services for disputes
between Associations,
between members from
different provinces
• provides technology
solutions to members
REALTORS ® ARE PROFESSIONALS CONNECTING TO CONSTITUENTS
All REALTORS® are real estate CREA represents a grassroots network
professionals, but not all real estate of REALTORS® from across the country.
professionals are REALTORS®. To be REALTORS® live and do business in
considered a REALTOR , real estate
®
every riding in Canada, and have a
professionals must be a member of deep knowledge of their communities
their provincial or territorial Association, and local economies. In their daily lives,
local Board or CREA. As well, they REALTORS® act as hubs that link local
must abide by the REALTOR Code,
®
Boards, Associations, clients, small
which sets out standards of professional business people and other colleagues.
conduct for members of CREA and Each has an extensive network of
helps protect the rights and interests contacts, and can be helpful to elected
of buyers and sellers. representatives who are looking for
help in learning more about various
CREA’s REALTOR Code has been the
®
aspects of their communities.
measure of professionalism in organized
real estate for over 40 years. REALTOR® REALTORS® are also one of the
ethical obligations are based on moral most politically engaged groups in
integrity, competent service to clients Canada – real estate Boards and
and customers, and dedication to the Associations often sponsor local
interest and welfare of the public. discussion panels and events, including
In many respects, the Code exceeds all-candidates’ meetings during general
basic legal requirements, creating a elections. More than 84% of our more
level of trust between REALTORS® than 110,000 members voted in the
and their clients. 2011 federal election.
REALTORS® live and do business in every riding in
Canada, and have a deep knowledge of their communities
and local economies.
CREA routinely briefs MPs and senators on real estate in the
country as a whole, in their individual provinces, or on the
housing market in their ridings.
As part of our outreach efforts, CREA INDEPENDENT INFORMATION
supports Political Action Committee AND ANALYSIS
Representatives (PAC Reps) in every
CREA is well known as a source of
community in their efforts to keep
sound policy advice and independent
parliamentarians up-to-date on local
analysis. We compile and analyze
issues and issues of concern to the
numerous factors affecting the
community. The PAC Network was
real estate market for the public,
created in 1985 to allow and encourage
REALTORS ® and governments. With
our members to actively engage with
the accurate, up-to-date information
their elected representatives. Through
that CREA provides:
our annual PAC Days conference,
REALTORS® from across Canada come
• The public gets a snapshot of the
to Ottawa in the fall to meet privately
Canadian housing market;
with parliamentarians on matters of
mutual interest. • REALTORS® can knowledgeably
advise their clients; and
In addition, CREA facilitates meetings • Politicians and government
between REALTORS® and MPs and policymakers can craft more
senators in their respective ridings. In this effective legislation and regulations.
way, MPs and senators are able to keep
an ear to the ground and have access On the 15th of every month, CREA
to the most comprehensive, up-to-date compiles and publishes the resale
and accurate information about local real market housing data from the previous
estate markets. months to keep its members and theThe impact of REALTORS® from
across Canada on Parliament Hill during
PAC DAYS 2015
686 POSTS USING
#CREAPAC15
70+ #PROUDREALTOR
PHOTOS SNAPPED
PAC DAYS ATTENDEES REPRESENTED
341 ATTENDEES
$77,020,517
IN APPROXIMATE SPIN-OFF SPENDING
67%
BOARDS AND
488
ASSOCIATIONS
REPRESENTED FROM JOBS FROM
ACROSS CANADA HOME SALES
137
SCHEDULED MEETINGS
WITH MEMBERS OF
PARLIAMENT
CONSERVATIVE NDP LIBERAL GREEN PARTY OTHERpublic informed. After each quarter PRE-BUDGET CONSULTATION
(in March, June, September and
Prior to any federal budget, CREA
December), CREA revises its forecast
makes recommendations to the
for provincial and national sales activity
government about how fiscal policy
and average home prices, taking into
can better encourage responsible
account new housing market data,
economic growth. Every year, CREA
as well as changes in the outlook for
participates in the House of Commons
interest rates and the macro-economy.
Standing Committee on Finance’s
To receive the monthly statistics the
annual Pre-Budget Consultation.
moment they are published on an
ongoing basis, please contact CREA’s
Working with our members,
Government Relations group at
CREA presents our industry’s
federalaffairs@crea.ca, or visit the
recommendations in a manner
“Real Estate & The Economy” section
consistent with the federal budget’s
to learn more.
economic plan. CREA’s priorities are
focused on the continued stability
of the Canadian housing market and
BRIEFINGS FOR its contribution to economic growth
PARLIAMENTARIANS
and job creation.
As a leading, independent
expert on real estate in Canada,
CREA routinely briefs MPs and COLLABORATION WITH
senators on real estate in the GOVERNMENT AGENCIES
country as a whole, in their
CREA works to promote legislation and
individual provinces, or on the
regulations that benefit homeowners
housing market in their ridings.
and that help REALTORS® better
We would be happy to brief you
serve their clients. This is done by
or your staff on topics involving
working with federal cabinet ministers,
real estate and the economy.
parliamentary secretaries, MPs,
Please refer to the “Contact Us”
senators, parliamentary committees
section to arrange a briefing.
and senior officials, both directly and
through our grassroots PAC Network.CREA has helped make Employment Insurance
more financially viable for the self-employed.
When issues arise that affect housing, CREA works with various government
property rights or the real estate sector, agencies, departments and
representatives from CREA meet with Crown corporations including the
politicians and officials to discuss them. Canada Mortgage and Housing
Corporation (CMHC), the Ministry
CREA is a non-partisan Association of Finance, Industry Canada and the
that has worked with many different Financial Transactions and Reports
governments to best serve the Analysis Centre of Canada (FINTRAC)
interests of consumers. In 1992, the to make sure that government policy
government introduced the Home reflects the realities of small business
Buyers’ Plan (HBP), a program available and specific perspectives of Canada’s
to first-time homebuyers that allows a real estate sector.
one-time withdrawal of up to $25,000
from a Registered Retirement Savings In addition to policy discussions,
Plan (RRSP). In effect, this is an interest- CREA is committed to supporting
free self-loan, letting buyers borrow and improving Canadian consumers’
against their own savings and repay savvy and safety through collaborative
withdrawals within 15 years. CREA has projects with other stakeholder groups
worked with governments to protect and government. This toolkit contains
consumers by improving mortgage information on some of the issues we
disclosure and retirement income, have partnered with, including with the
and partnered on safety and security Royal Canadian Mounted Police (RCMP),
initiatives. CREA has also helped make Health Canada and the Financial
Employment Insurance more financially Consumer Agency of Canada (FCAC).
viable for the self-employed.
Health Canada Royal Canadian Mounted Police
Financial Transactions and Reports Financial Consumer
Analysis Centre of Canada Agency of Canada02 REAL ESTATE & THE ECONOMY Real estate is a major driver of job creation and consumer spending in Canada.
REAL ESTATE &
THE ECONOMY
Canada’s housing market is a key component of Canada’s
overall economic stability and an important generator of jobs
and economic activity. Each home sale generates a significant
amount of spin-off spending as well as job creation.
CREA tracks and analyzes housing CANADIAN HOME PRICE TRENDS
market trends, the economic factors
CREA’s MLS® Home Price Index (HPI)
that affect them and provides
tracks price trends for single family,
accurate, reliable and up-to-date
apartment, and townhouse/row units
information that enables:
in a number of housing markets across
Canada. It was launched in 2012 as
• The general public to gain
the initiative of five leading real estate
an understanding of current
Boards and CREA and has since grown
and forecast Canadian housing
to include data from real estate Boards,
market trends;
in total representing the majority of all
• REALTORS® to knowledgeably
Canadian resale housing activity1.
advise their clients; and
The MLS® HPI is the most accurate and
• Politicians and government up-to-date tool available for determining
policymakers to craft effective Canadian home price trends because
legislation and regulations. price changes calculated using the MLS®
HPI are less volatile than those derived
CREA publishes and/or otherwise using common measures like average
makes available a range of economic and median. These common measures
and demographic data that entrenches can swing dramatically in response to
its position as one of the leading changes with high-end or low-end sales
sources of sound policy advice and volumes over time.
independent analysis.Our organization’s monthly news release outlook for key economic factors that
on the 15 of every month provides
th
affect Canada’s housing markets.
market intelligence and data on local
market, provincial and national sales Finally, since consumer psychology
and listings sourced from MLS® Systems plays a crucial role in the demand
of Canadian real estate Boards and for Canadian housing, CREA tracks
Associations across Canada. CREA also national, regional and provincial
maps monthly average price statistics consumer confidence and sentiment
for properties sold through Multiple about making major purchases, such
Listing Service Systems of Canadian
® as a home or car.
real estate Boards and Associations.
Housing market trends are an important
At the end of every quarter (in March, indicator of your community’s economic
June, September and December), CREA health. CREA can provide you with the
revises and publishes its forecast for latest market intelligence and statistics
provincial and national sales activity for your housing market. Please contact
and average home prices, which takes our government relations team if you
into account the latest housing market are interested in information specific to
trends and changes in the prevailing your community.
Our organization’s monthly news release on the
15th of every month provides market intelligence
and data on local market, provincial and national
sales and listings sourced from MLS® Systems
of Canadian real estate Boards and
Associations across Canada.Housing market trends are an important indicator of your
community’s economic health. CREA can provide you with
the latest market intelligence and statistics for your housing
market. Please contact our government relations team if you
are interested in information specific to your community.
ECONOMIC OUTCOMES AND DEMOGRAPHIC TRENDS
CREA receives updated national and Demographic trends – including
provincial statistics on the HBP from population growth by age, the
Canada Revenue Agency every spring movement of Canadians from one
and autumn, and estimates the number province to another as well as
of home sales enabled by the Plan. international immigration – play an
Using these figures and the results of important role in Canadian housing
the Altus Group Study (as above), CREA demand and supply. CREA tracks and
updates information on the economic analyses this information on a quarterly
benefit – including spin-off spending basis as updated data become
and job creation – of home sales available from Statistics Canada.
enabled by the HBP.
CREA also tracks and analyses monthly
Every second year, CREA commissions trends for housing permits, housing
the Altus Group to update a study that starts, homes under construction,
quantifies the national, regional and as well as completed and unoccupied
provincial economic benefit – including homes. Finally, CREA tracks a variety
spin-off spending and job creation – of of mortgage interest rates and analyses
MLS® home sales and purchases. detailed monthly employment trends
at the local market, provincial and
national level.
To receive the monthly statistics the moment they are published
on an ongoing basis, please contact CREA’s Government Relations
group at federalaffairs@crea.caIN YOUR COMMUNITY REALTORS Care ® – Making a difference in your community. 03
IN YOUR
COMMUNITY
Canadian REALTORS® have a special connection to their
communities. Not only do they work closely with their
neighbours to make their real estate dreams come true,
but REALTORS® across Canada also volunteer countless
hours and come together to support a diverse array of
causes and charities close to their hearts.
REALTORS® plant trees and clean up To get a better sense of the magnitude
parks. They don hard hats and steel- of their generosity, we asked the
toe boots to participate in Habitat for Canadian REALTOR® community how
Humanity builds. They host charity much they raised and gave to charity
garage sales and organize food drives, in 2012, 2013, and 2014. In these three
book drives, clothing drives, and years alone, Canadian REALTORS®,
blanket drives. REALTORS® volunteer brokerages, franchisors, real estate
on boards and organizing committees. Boards and Associations, and their
They participate in sports tournaments affiliated charitable organizations
and physical challenges–runs, walks, reported giving over $71.6 million.
and rides of all kinds. They gather their Although this is an impressive number,
friends for galas, dinners, concerts, talent it is likely only a fraction of the true
shows, auctions, and BBQs, to have fun amount, as many REALTORS® keep
for a good cause. All of these initiatives details of their charitable contributions
proudly fall under the umbrella of to themselves.
“REALTORS Care®”– a guiding principle
and a brand that celebrates and unites The Canadian REALTORS Care®
the great philanthropic work being done Foundation is the REALTOR®
by REALTORS® from coast to coast. community’s national charitable$71.6 million REPORTED GIVINGS
FROM 2012-2014
foundation and has been funded by Foundation facilitated the collection
CREA since 2007. The Foundation is of $246,842 in support of the Canadian
dedicated to sharing inspiring stories of Red Cross’ Alberta Floods Fund in 2013.
REALTORS®’ charitable achievements
in their communities and shining a REALTORS® are always looking for
spotlight on their favourite charities active partners to make meaningful
and causes. When a national disaster change in their communities and love
occurs, the Foundation is ready to to collaborate with MPs, senators
jump into action and help the Canadian and other elected representatives to
REALTOR® community raise funds achieve these goals.
for relief efforts. For example, the
All of these initiatives proudly fall under the umbrella
of “REALTORS Care®” – a guiding principle and a brand
that celebrates and unites the great philanthropic work
being done by REALTORS® from coast to coast.REALTORS ® MAKE A DIFFERENCE Here are a few examples of the inspiring ways Canadian REALTORS® are making a difference in their communities. For more, visit REALTORSCare.ca Every November, real estate Boards, offices, and individual REALTORS® from across the Lower Mainland of British Columbia participate in the annual REALTORS Care® Blanket Drive, now in its 21st year. Since its inception, this initiative has helped over 250,000 people in need of blankets and warm clothing. In July 2015, the Ontario REALTORS Care® Foundation celebrated their 10th annual Motorcycle Ride for Charity. Each summer, Ontario REALTORS® travel across the province to raise money and awareness for shelter-based charities. To date, they have raised over $24,200 with this event.
On August 6, 2015, REALTORS® from four On June 18, 2015, Calgary and area brokerages came together for a friendly REALTORS® presented six local softball tournament in Dartmouth, charities with a total donation of Nova Scotia. As a result, they raised $100,000, as part of the CREB® over $1,000, which was divided among Charitable Foundation’s Governors’ their four local charities of choice. Grants program. On April 3, 2015, Manitoba REALTORS® celebrated 10 years of serving Good Friday dinner at Siloam Mission by serving a turkey dinner with all the trimmings to more than 500 inner-city Winnipeggers.
REALTORS ® ARE ENGAGED
REALTORS® are involved in both The EPCitizen project celebrates positive
their communities and the political political role models and builds a culture
process. More than 84% of our of positive politics. Conducted coast
110,000 members voted in the 2011 to coast to coast, the EPCitizen project
federal election, and REALTORS® crowd-sources nominations for regular
do not hesitate in seeking to make everyday citizens whose big and small
a meaningful contribution to their actions enrich this country’s political
communities. CREA is a proud sponsor culture and promote democracy.
of Samara Canada’s Everyday Political
84%
Citizen (EPCitizen) project, a project
that aims to recognize the diversity of
politics and democracy in Canada.
OF MEMBERS VOTED IN THE
2011 FEDERAL ELECTION
As recognized leaders in their communities, many of our
members were nominated this year for the EPCitizen project.
Here are a few of this year’s nominations:
Christiane Guérette (Saskatoon, SK)
While balancing a busy career and her most important
responsibility of raising two active boys, Chris is able to find
time to volunteer for a number of charitable organizations
and is an active advocate for bilingualism and women
in politics. Chris was VP of Communications for the
Saskatchewan Chapter of Equal Voice from June of 2011 until
July of 2013 and continues as an active volunteer working to
elect more women to all levels of political office in Canada.
Chris also finds time to serve on the Board of Directors of
the Saskatoon Food Bank and Learning Centre and is an
active volunteer for the Federation des Francophones de
Saskatchewan following her term as President in 2011/12.Tim Otitoju (Regina, SK) Tim currently volunteers as the Political Action Representative for the Association of Regina REALTORS®. In this capacity, he is directly involved in taking public policy proposals that contribute to home ownership to the provincial government in his home province of Saskatchewan and to the federal government. He has met with government officials on multiple occasions about the importance of housing to the local community and Canadians. Tim is also involved in speaking to potential immigrant entrepreneurs about how to start a business in Canada and the role that government plays in regulating business. As well, he worked as an advertising director for a mayoral candidate in the last municipal election. Harry DeLeeuw (Winnipeg, MB) Harry has served as President of CREA, the Manitoba Real Estate Association (MREA) and the WinnipegREALTORS®. He is the founding chair of Manitoba Tipi Mitawa, a groundbreaking First Nations home ownership program. Harry is founder of the Citizen’s Hall of Fame in Winnipeg’s Assiniboine Park and a founding member of the International Consortium of Real Estate Associations (ICREA). He was a steadfast and driving force behind a successful two million dollar REALTOR® fundraising campaign to help build the Canadian Museum for Human Rights in Winnipeg. Debbie Vernon (Muskoka, ON) Debbie Vernon is passionate about politics. She has been the Chair of the Political Action Committee for the Lakelands Association of REALTORS® for over 6 years. Her tireless enthusiasm and advocacy for the rights of homeowners, seniors and those less fortunate is an inspiration to her colleagues. She routinely meets with her local Member of Parliament and Member of Provincial Parliament on various issues and initiatives, and is very passionate about the environment and protecting their local watershed.
REALTORS ® ARE THOUGHT LEADERS
Real estate professionals are engaged through its sponsorship of major events
because they recognize the value of like the Canada 2020 Conference, the
active participation in their communities Manning Networking Conference and
and political systems. While REALTORS ®
the Broadbent Institute’s Progress Gala.
are not afraid to roll up their sleeves CREA is also a proud sponsor of the
and get involved in a hands-on project, Parliamentary Internship Programme,
they also support and contribute to a prestigious non-partisan work-study
conversations between thinkers, policy programme that chooses ten of the top
experts, young people and other graduates in the country to work on
passionate Canadians. CREA is an Parliament Hill for ten months.
active contributor to thought leadership
CREA is an active contributor
to thought leadership through
its sponsorship of major
events like the Canada 2020
Conference, the Manning
Networking Conference and
the Broadbent Institute’s
Progress Gala.04 FINANCIAL LITERACY Improving financial literacy in your riding.
FINANCIAL
LITERACY
At a time when household debt levels are of concern, many
of your constituents feel insecure about their understanding
of the financial implications of purchasing a home.
A survey conducted by Nanos Research In 2012, CREA collaborated with
for CREA in 2012 found that more than Canada’s lead government agency
63% of Canadians indicated a “major on financial literacy, the Financial
need” for more information about the Consumer Agency of Canada (FCAC),
financial details of buying a home . This
2
to develop the Homebuyers’ Road
is where the real estate industry and Map. This print document, available
local REALTORS have a critical role to
®
in French and English as well as
play by arming your constituents with the top three newcomer languages
knowledge, skills and confidence to to Canada (Punjabi, Tagalog and
make responsible financial decisions Simplified Chinese), walks homebuyers
about homeownership, the most through the critical steps of buying a
significant financial decision many home. Its aim is to help individuals and
of them will ever make. families better understand the financial
implications of purchasing a home,
covering everything from assessing
financial readiness to shopping for
63% of Canadians mortgages, government programs
indicated a “major need” and saving for closing costs.
for more information about
the financial details of
buying a home.175,000
COPIES
10,000
VIEWS
Since 2014, CREA and FCAC have local REALTORS®’ offices, while the
expanded their financial literacy arsenal YouTube videos have over 10,000 views.
by creating a series of short YouTube Your office can download a copy of the
videos that define key terms and Homebuyers’ Road Map from CREA’s
concepts related to home buying, such website (CREA.ca/RoadMap) or order
as amortization period and mortgage free print copies by contacting CREA.
prepayment. Each video provides a You can also share the Homebuyers’
definition followed by a brief explanation Road Map or the YouTube videos with
with video animations of the financial your constituents through social media.
implications of each term or concept.
We continue to look for ways REALTORS®
To date, over 175,000 copies of the can empower Canadians with the tools
Homebuyers’ Road Map resource and knowledge to make informed
have been given to MPs and placed financial decisions on homeownership.
in buyer packages, open houses and
Your office can
download a copy of the
Homebuyers’ Road Map
H O M EB
from CREA’s website
U YE RS ’
ROAD M (CREA.ca/RoadMap) or
AP
HO ME BU YE RS
’
order free print copies
ROAD MAP by contacting CREA.HOME
BUYERS’ PLAN
One of the federal government’s most
important housing affordability programs helps
to make the dream of home ownership a reality
for many Canadians.
05HOME
BUYERS’ PLAN
The Home Buyers’ Plan (HBP) is a federal program that makes
owning a first home easier. Under the HBP, homebuyers can
withdraw money from their RRSP to help purchase or build a
first home, either for themselves or a disabled relative.
The HBP allows a one-time withdrawal a property with less than a 20% down
of $25,000 from a Registered Retirement payment are required to buy mortgage
Savings Plan (RRSP). Each year, the default insurance, the HBP can reduce
homebuyer must pay back to their or eliminate the need for this costly
RRSP a portion of the withdrawn additional charge and reduce the
amount, repaying the complete amount of interest paid to lenders. To
amount within 15 years. date, more than 2.8 million Canadians
have used the HBP to help make
The HBP makes home ownership homeownership more affordable.
more affordable. Money withdrawn
through the HBP essentially serves as The HBP also generates many benefits
a repayable, zero-interest self-loan. for the economy as a whole. In 2015,
Because homebuyers who purchase each home sale will generate an
estimated $51,409 in spin-off spending.
This includes renovations, furniture
and appliances, professional services,
The HBP allows a one-time moving costs, and tax revenue to
government. In 2015, HBP purchases
withdrawal of $25,000 from
are expected to result in over
a Registered Retirement $2.9 billion in spin-off spending and
Savings Plan (RRSP). more than 22,000 jobs.PROJECTED RESULTS FROM HBP PURCHASES IN 2015: $2.9 billion 22,000+ IN SPIN-OFF SPENDING JOBS Maintaining the value of the HBP As with other policies, the HBP requires is critical, since it gives first-time occasional review to make sure that homebuyers an opportunity to make its benefits continue to be leveraged larger down payments, which can reduce to their full potential. For example, or avoid mortgage default insurance CREA supports the expansion of the fees. Interest charges can also be HBP to allow Canadians impacted by reduced by the HBP by allowing first- sudden and significant life changes, time buyers to borrow from themselves such as job relocation, the death of a and rely less on financial institutions. spouse, marital breakdown, or a decision In addition, the HBP makes it easier for to accommodate an elderly family Canadians to build home equity and member, to access the program. CREA save for retirement at the same time, continues to monitor the HBP to ensure thus incentivizing greater financial homeownership remains affordable for preparedness. first time homebuyers. To date, more than 2.8 million Canadians have used the HBP to help make homeownership more affordable.
06 SOCIAL INFRASTRUCTURE CREA is committed to working with policymakers to renew federal leadership in housing.
SOCIAL
INFRASTRUCTURE
Stable, affordable, good-quality housing is the key to a wide
range of public policy challenges, including family poverty,
retirement security for seniors and unemployment.
Better housing can provide much The Forum provides a place
needed stability for people with serious to build consensus on Canada’s current
health, mental health and addiction and future housing needs and acts as
challenges, as well as for Canadians an information-sharing resource that
taking care of their parents, children, can provide input into addressing
or paying off their student debt. the challenges facing Canada’s
housing sector.
Since 2014, CREA has participated
in the National Forum on Housing Housing is a major economic driver
and the Economy (NFHE), a forum for Canada and CREA welcomes
established by the Federation of commitments to renew federal
Canadian Municipalities (FCM) leadership in housing with a ten-year
to bring together key housing investment in social infrastructure
stakeholder groups, including not- by building more housing units,
for-profit, industry and professional refurbishing existing ones and renewing
associations, and business groups. support for a Housing First approach.
Both decision makers and REALTORS® recognize a National
Housing Strategy must leverage a combination of policy tools
to make it easier for Canadians to find an affordable place
to call home.Better housing can provide much needed
stability for people with serious health,
mental health and addiction challenges.
CREA proposes to allow Canadians population, including recent immigrants
impacted by sudden and significant life and the working poor. Many in these
changes, such as job relocation, the groups could manage the ongoing
death of a spouse, marital breakdown, obligations of homeownership if they
or a decision to accommodate an had a helping hand to overcome the
elderly family member, to access the barrier of a down payment.
Home Buyers Plan (HBP).
Both decision makers and REALTORS®
CREA welcomes federal
recognize a National Housing
Strategy must leverage a combination leadership across the entire
of policy tools to make it easier for housing spectrum and is a
Canadians to find an affordable place ready partner in addressing
to call home. REALTORS® understand
affordability concerns.
there are significant home ownership
gaps among certain segments of theFIRST NATIONS
HOMEOWNERSHIP
REALTORS® understand the value of
homeownership in building economic
stability for those who make
that choice.
07FIRST NATIONS
HOMEOWNERSHIP
CREA understands a home is more than four walls and a roof.
Studies have shown homeownership not only serves as a catalyst
for building sustainable and healthy communities, but generates
jobs and stimulates economic growth.
For the past four decades, several REALTORS® have been proud to support
First Nations in Canada have initiatives that assist First Nations
implemented and maintained a families with homeownership.
variety of innovative and successful REALTORS® in Alberta have partnered
homeownership programs. While there with the CMHC to help low income
are distinct cultural considerations, people, including Aboriginal families,
when homeownership is accessible, it become homeowners, through
has strong appeal among aboriginal education, individual support and
Canadians. Nevertheless, only 27% advocacy, down payment assistance,
of aboriginal people own a home, underwriting assistance and ongoing
compared to the national average of support. In Manitoba, Tipi Mitawa
approximately 70%. (“My Home” in Dakota), a partnership
between REALTORS®, the Assembly
of Manitoba Chiefs and the province
REALTORS® have been proud
to support initiatives that
assist First Nations families
with homeownership.Homeownership, affordable rental and subsidized housing
are all part of a solution to helping families, including
First Nations families, break the cycle of poverty.
Only 27%
property over ten years. Through
MTM, First Nations families are able to
invest in their future and build equity, in
OF ABORIGINAL PEOPLE OWN A
some cases becoming the first in their
HOME, COMPARED TO THE NATIONAL
AVERAGE OF APPROXIMATELY families to own homes.
70% Helping First Nations families own their
homes frees up subsidized housing and
transitional accommodation spaces for
other families in need. Homeownership,
of Manitoba has helped First Nations
affordable rental and subsidized housing
families purchase their own homes
are all part of a solution to helping
since 2008. The program helps families
families, including First Nations families,
with up to a 15% down payment and
break the cycle of poverty. By sharing
potential monthly subsidy towards the
housing market expertise, REALTORS®
mortgage cost of a home. According
hope to contribute to an expansion of
to the MREA, a Manitoba Tipi
homeownership for aboriginal people
Mitawa (MTM) home costs one-third
who make that choice.
that of a government funded rental-08 MONEY LAUNDERING How REALTORS® are helping fight money laundering and terrorist financing in Canada.
MONEY
LAUNDERING
Canada’s Proceeds of Crime (Money Laundering) and Terrorist
Financing Act (PCMLTFA) stems from international obligations and
standards developed by the Financial Action Task Force (FATF), an
international body responsible for setting anti-money laundering
and anti-terrorist financing standards.
As a member of the FATF, Canada and terrorist financing in Canada and
actively participates in regular abroad. The real estate sector has
evaluations by international peers. been identified as high risk, and CREA
Implemented in 2000, the PCMLTFA works closely with FINTRAC. REALTOR®
aims to detect and deter money members have a number of obligations
laundering and the financing of under the Act and are responsible for
terrorist activities while facilitating the following:
the investigation and prosecution of
these crimes. Its objective is to place • Record keeping;
equal emphasis on preventing illicit • Ascertaining client identity;
funds from entering or moving through
• Use of personal information;
Canada’s financial system and assisting
law enforcement in detecting and • Assessing client and brokerage risk;
prosecuting these crimes. • Monitoring business relationships;
• Third party determination;
The Financial Transactions and Reports
Analysis Centre of Canada (FINTRAC) • Reporting attempted suspicious
was established as the agency transactions, suspicious transactions,
responsible for the collection, analysis terrorist property and large cash
and disclosure of information to transactions; and
assist in the detection, prevention • Implementing a compliance regime.
and deterrence of money launderingKEY TERMS:
PCMLTFA FATF FINTRAC
PROCEEDS OF CRIME FINANCIAL FINANCIAL
(MONEY LAUNDERING) ACTION TRANSACTIONS AND
AND TERRORIST TASK FORCE REPORTS ANALYSIS
FINANCING ACT CENTRE OF CANADA
The majority of our members are small Implemented in 2000, the
business people and entrepreneurs
PCMLTFA aims to detect and
who take on considerable regulatory,
paperwork and software burden to deter money laundering and
meet FINTRAC requirements. Since the financing of terrorist
Canada established its anti-money activities, while facilitating
laundering regime, REALTORS ® have
been subject to regulatory changes
the investigation and
that have steadily increased the prosecution of these crimes.
intricacy of certain procedures and the
compliance burden associated with
the Act. The resulting administrative
load risks flooding these small
businesses in a sea of paperwork while
amplifying the volume and complexity
of information they are required to
collect from client interactions.Since Canada established its anti-money laundering regime,
REALTORS® have been subject to regulatory changes that have
steadily increased the intricacy of certain procedures and the
compliance burden associated with the Act.
CREA supports a holistic, capacity- such services. CREA believes that all
conscious approach to pursuing sectors have a role in addressing the
the collective goal of detecting and concerns raised by the FATF, but that
deterring money laundering and the compliance burden should be
terrorist financing. This perspective shared in a manner that reflects which
accepts that identified sectors do sectors are better placed to tackle
not operate in a vacuum from one these issues. This is important both to
another, and the interface between ensure small business viability under
them is important to consider when the requirements of the regime and
creating evidence-based policy. In guarantee the regime’s effectiveness
particular, financial institutions are also in preventing money laundering and
regulated by the PCMLTFA, a sector terrorist financing.
with significantly greater resources
such as staff and technical expertise. While CREA assists members in
Furthermore, real estate professionals complying with Canada’s PCMLTFA
seldom handle the actual exchange regulations, our association also works
of funds from a business transaction, with key stakeholders to find sensible
relying on exactly this expertise solutions to address these issues.
from financial institutions to perform
CREA believes in the importance of adopting practical
changes to the law that reflect the resources available to small
businesses and specific challenges in the real estate sector while
addressing a real and documented concern in fighting money
laundering and terrorist financing.HOME SAFETY REALTORS® are committed to helping keep your constituents’ homes safe. 09
DRUG OPERATIONS
Marihuana grow operations (MGOs) and synthetic drug
laboratories may seem like they belong on television crime
dramas, but reality places them much closer to home.
Today, in Canada, drugs are being MARIHUANA GROW
cultivated and manufactured behind OPERATIONS (MGOs)
the facades of many types and styles
An MGO can look like any other
of building that REALTORS® come in
property, at least at a cursory glance.
contact with in the course of doing
business. They pose both potential
An MGO is any building that has been
health and safety risks, and significant
leased or purchased and converted
legal and ethical responsibilities. They
into a nursery or hydroponics operation
are a major concern for REALTORS®
to grow marihuana plants. The radical
across the country, and CREA has
modifications made to buildings that
worked with the RCMP to educate
house MGOs can create a multitude of
our membership on the issue.
potential hazards. Diverting electricity
and tampering with electrical wiring
can lead to house fires, and the use
of extra exhaust fans can exacerbate
The radical modifications
this danger. Re-venting of a furnace to
made to buildings that house circulate air for marihuana plant feeding
MGOs can create a multitude can also circulate exhaust fumes from
of potential hazards. the furnace back into the house.CREA recognizes that there can be legitimate reasons
for individuals to grow marihuana.
Poisonous gases from the chemical Canadians licensed under the
nutrients used in the production of regulations can access the government
the marihuana crop can build up, and supply of dried marihuana, grow their
can then be vented outside into the own supply or have a designated
surrounding neighbourhood. Not least person grow it for them. While legal,
of all, the combination of solvents and CREA believes that homeowners
oxygen from the exhaust fans can cause must be aware of the fire, building,
an explosion. plumbing, electrical codes and other
regulations, so as to mitigate the safety
CREA recognizes that there can be and health concerns outlined above.
legitimate reasons for individuals
to grow marihuana. The Marihuana
Medical Access Regulations came
into force in 2001, establishing a
framework to allow access to marihuana
by individuals suffering from grave or
debilitating illnesses that cannot be
relieved with conventional treatments.SYNTHETIC DRUG LABORATORIES
Although fewer in number, synthetic possibly death. Poor ventilation
drug labs located in domestic increases the risks of explosions and
residences and other buildings toxic fume inhalation.
represent a dangerous situation for
REALTORS® and potential buyers. Synthetic drug labs are not only found
where stereotypes would suggest, such
Synthetic drug labs can contain as abandoned properties in major cities;
serious explosive, flammability, labs have been found in upscale single-
and inhalation hazards due to the and multiple-family dwellings, motel
presence of chemicals and precursor rooms, campgrounds, mini-storage
materials used in drug production. buildings, and motor vehicles, including
Errors and accidents in the process rented trucks. These illegal facilities are
of manufacturing synthetic drugs found in both urban and rural locations.
can generate a wide range of toxic Labs located in homes or apartments
substances. For example, inaccurate expose family members and neighbours
methamphetamine production can to the hazardous materials inherent in
result in phosphine gas, which can the drug-cooking process.
cause severe lung damage and
Synthetic drug labs can contain serious explosive,
flammability, and inhalation hazards due to the presence of
chemicals and precursor materials used in drug production.REALTORS® can educate their clients on the health and safety issues around MGOs and possible remedial actions taken to make sure the house is safe. REALTORS ® HAVE A STAKE IN FIGHTING MGOs AND SYNTHETIC DRUG LABS On the outside, MGOs and synthetic communities in which they exist, not drug labs look like any other property, only for future owners or occupants but former MGOs and synthetic of the premises but also for the other drug labs may not be safe for human residents of these areas. occupancy due to their compromised structural and mechanical integrity, REALTORS® have an obligation to as well as hazards from mold and/ discover facts pertaining to a property or chemical residue. The presence and disclose such information to their of explosive and/or toxic materials client. REALTORS® can educate their may also pose a threat to an adjacent clients on the health and safety issues property. MGOs and synthetic around MGOs and possible remedial drug labs represent public safety actions taken to make sure the house concerns to the neighbourhoods or is safe.
RADIOACTIVE GAS
Radon is a radioactive gas that is odourless, colourless,
and tasteless. It is produced by the breakdown of uranium
found in sediment (soil), rocks, and water.
When radon is released into the Over time, the cell damage can lead
atmosphere it gets diluted and poses to the development of lung cancer.
negligible risk to human health . 3
Radon is the second leading cause of
However, accumulation of high levels lung cancer5 and it is estimated that
of radon in a home can create a long- 16 per cent of lung cancer deaths
term health risk for residents4, if left among Canadians are attributable to
unmitigated. indoor radon exposure6.
CREA is actively engaged in educating
your constituents about the potential
dangers of radon. When inhaled, radon CREA is actively engaged in
gas particles remain in lung tissue
educating your constituents
and begin to decay. As this happens,
they release bursts of radiation that about the potential dangers
can damage the lung tissue cells. of radon.THE COST OF TESTING RANGES FROM 7
$50 $100
Radon concentrations can be startlingly Radon is the second leading
varied from house to house; even
cause of lung cancer5
adjacent homes can sometimes have
drastically different levels. For this
reason, Health Canada suggests three months during the fall or winter
that every house should be tested, months. While short-term tests exist,
regardless of the age of the home. longer-term tests provide a more
representative annual average for radon
CREA and the Canadian exposure. Do-it-yourself kits include
Association of Radon Scientists and instructions on how to set up the test
Technologists (CARST) agree with and submit the results for analysis.
Health Canada’s recommendations Radon test kits can be purchased
that homeowners use a long-term by phone, online, or from home
test – conducted over a minimum of improvement retailers. The cost of
testing ranges from $50 to $100.10 CONTACT US CREA can help with questions and concerns from your constituents.
CONTACT US
CREA can help with questions and concerns
from your constituents.
CREA is your one-stop source for their ridings. We are happy to answer
information on real estate in Canada. questions or brief parliamentarians or
Our organization is widely recognized staff on any of these topics, or others
as a leading source of independent involving real estate. To arrange a
policy advice and analysis on housing briefing, please contact any member
and the economy. of our team.
Our team of economists, policy CREA is also best placed to help you
experts and real estate professionals with any questions and concerns your
are excellent resources at your constituents have about real estate in
disposal. CREA routinely briefs MPs Canada.
and senators on real estate in the
country as a whole, in their individual
provinces, or on the housing market in
Do not hesitate to
contact a member of
our team if one of your
constituents needs
assistance and we will
guide them to the
right place.200 Catherine Street, 6th floor
Ottawa, ON K2P 2K9 | 613-237-7111
OUR TEAM
Gary Simonsen Gregory Klump
Chief Executive Officer Chief Economist
gsimonsen@crea.ca gklump@crea.ca
Randall McCauley Anna Laurence
Vice-President, Manager, Government Relations
Government and Public Relations alaurence@crea.ca
rmccauley@crea.ca
Nicole Christy
Dina McNeil Advisor, Government Relations
Director, Government Relations and Communications
dmcneil@crea.ca nchristy@crea.ca
For inquiries related to statistical
information federalaffairs@crea.ca
CREA routinely briefs MPs and senators on real estate in the
country as a whole, in their individual provinces, or on the
housing market in their ridings.For the most up-to-date version of this toolkit and other resources for parliamentarians and their staff, please visit crea.ca/mp
REFERENCES
1. Based on the 10-year average of annual sales from 2004-2013.
2. The poll was a random national telephone survey of 1000 Canadians
aged 18 and over is considered accurate ± 3.1%, 19 times out of 20.
3. HealthLinkBC, 2010. Radon in Homes and Other Dwellings. Accessed
August 18th, 2014 from http://www.healthlinkbc.ca/healthfiles/hfile42.stm
4. Chen, J., Moir, D. and Whyte, J., 2012. Canadian population risk of radon
induced lung cancer: a re-assessment based on the recent cross-Canada radon
survey. Radiation Protection Dosimetry, 152(1-3), 9-13.
5. CARST, 2013. Health Risks Associated With Radon Gas.
Accessed August 18th, 2014 from http://www.carst.ca/page-1784976
6. Chen, J., Moir, D. and Whyte, J., 2012. Canadian population risk of radon
induced lung cancer: a re-assessment based on the recent cross-Canada radon
survey. Radiation Protection Dosimetry, 152(1-3), 9-13.
7. Health Canada, 2013. Government of Canada Radon Guideline.
Accessed August 18th, 2014 from http://www.hc-sc.gc.ca/ewh-semt/
radiation/radon/guidelines_lignes_directrice-eng.phpYou can also read
