How Much Are Real Estate Commission Rates in Canada? + MORE Jun 2nd

When it comes to selling your home, you have to spend money to make money. Land transfer taxes. Lawyer fees. Mortgage discharge costs. But your biggest cost? Likely your real estate agent’s commission.
It’s been said that Canadian sellers typically pay between three and seven per cent of their home’s selling price to their real estate agent, which is then split with the buyer’s agent – sometimes evenly, sometimes not. And commission adds up, especially in the nation’s hottest markets. Though there’s been speculation of cooling in notoriously hot markets like Toronto and Vancouver due to government intervention, the average selling price of a home in the GTA came in at $890,284 in the beginning of May. That can add up to a lot in commission.
Commission rates in Canada
There is no set rate of commission for real estate agents in Canada or in the individual provinces and territories.
In fact, according to Canada’s Competition Act, to promote free and open competition, commission rates are based on whatever that specific agent wants to charge, and realtors cannot claim that there is a standard rate across the board…

TORONTO — An Ontario regulator says it will not be disciplining 43 of the 45 mortgage brokers and agents that mortgage lender Home Capital cut ties with over allegations they falsified loan applications.

The Financial Services Commission of Ontario said last week it had disciplined a mortgage broker and an agent after finding them to be non-compliant with the province’s Brokerages, Lenders and Administrators Act.

Signage outside the Home Capital Group Inc. headquarters office in Toronto, Thursday, May 4. Of the 45 agents and brokers with whom Home Capital severed relations over mortgage fraud, only two will be disciplined.

On Thursday, the commission said it concluded its review into all 45 individuals and has not taken any action against 43 of them.

It said last Friday that its superintendent of financial services concluded that agent Zaheer Mohammad gave false income and employment information to a lender in the course of brokering mortgages on six separate occasions.

He was fined $43,853…

The head of Canada Mortgage and Housing Corp. says it is beefing up its ability to detect mortgage fraud after being directed to do so by the federal government.
CMHC president and CEO Evan Siddall says there is no evidence of a widespread mortgage fraud problem.
But Siddall says there are incentives to commit fraud in the system and therefore the agency needs to be vigilant.
Siddall says CMHC’s stepped up efforts were not triggered by recent events at mortgage lender Home Capital, which has been dealing with the aftermath of a scandal involving falsified loan applications.
There have been concerns that Canada’s heated housing markets _ namely those in Toronto and Vancouver _ could have broader consequences on the national economy in the event of a recession.
Siddall says CMHC is looking at ways it can use data analytics to spot patterns that could be indicative of fraud networks or fraud rings.
The post Federal housing agency beefing up ability to detect mortgage fraud, CEO says appeared first on Canadian Business – Your Source For Business News.

Earlier today, a press release was issued announcing the launch of the Mortgage Awards of Excellence, a new industry-driven event taking place on May 3, 2018. There are a number of  different events that recognize and celebrate excellence in the industry so some may be asking the question: Why create a new one? To answer this question, we reached […]