Cross Border Relocation What's the Big Deal?

Cross Border RelocationWhat’s the Big Deal?

Sandra Cairns, Dada Destination Services Inc.

Sharron M Lamour, RBC Royal Bank

Chris Lesiuk, TheMIGroup

Cross Border RelocationWhat’s the Big Deal?

Destination Services

Sandra Cairns, President

Dada Destination Services Inc.

What’s the Big Deal?

Destination Services

• Required Document Assistance

• Community Settling In Assistance

Destination Services

• Education Assistance

• Transition Coaching for Spouses and Teens

Destination Services Recommendations

• At a minimum Basic Settling In counseling must be in your core benefits.

• If transferee has children than education assistance must also be offered.

Cross Border RelocationWhat’s the Big Deal?

Financing Differences

Sharron M Lamour, Manager Business Development, Corporate Employee

Relocation Programs, RBC Royal Bank

FINANCING A HOME IN CANADA

Before the House Hunting Trip

• Always pre-qualify – you need to know if you qualify for credit facilities in Canada

• Pre-qualifing will also tell you what your purchasing power is - how much you can pay for a house and how much mortgage you can afford (without subsidy)

• Provides you with a 60 day interest rate guarantee

FINANCING A HOME IN CANADA

What To Bring With You

• Passport & at least one other piece of identification

• verification of new job particulars and status while in Canada (landed immigrant, work permit) & if filing Canadian Income Tax while here

• Letter from current Banker(s) verifying accounts, loans & balances

• Current Credit Bureau if possible

• Letter from Insurance Broker with details of vehicle & household policies in place at time of transfer

FINANCING A HOME IN CANADA

Terminology

• Be sure you understand the terminology

• We use the same words to describe different things ie a Canadian chesterfield is a sofa (not a cigarette)

• Amortization, altho used in a similar way has different limitations, as does Interest Rate term

• never assume – always ask for clarification

FINANCING A HOME IN CANADA

Mortgage Options Canada USA

Amortization up to 40 yrs up to 50 yrs

Interest Rate Term 6 mo to 10 yrs ???????

Payment Frequencies w/bi-w/s-m/m monthly only

Mortgage Port yes no

Closing Costs client pays Direct Bill

Breakage Costs

Debt ServicingRatio 32 & 40

Insured Mortgages over 80%

FINANCING A HOME IN CANADA

Mortgage Subsidies & Tax Treatment

Option Canada USA

Subsidy payments per payment annually

Tax Treatment 80.4 of Tax Act 100% taxable

Mortgage Interest n/a 100% deductable

FINANCING A HOME IN CANADA

IMPORTANT TAKE AWAY:

• Have a connection to the Professionals in Canada who can help you and your Employee with all aspects of the relocation

• Do not leave your Employee (one of your Company’s greatest assets) to fend for themselves…it will not be easy to find the best professionals or products on their own

Cross Border RelocationWhat’s the Big Deal?Household Goods Movement

Chris Lesiuk

Canada to USA

Household Goods Customs Documentation

• Required Customs Documentation

– Valid Passport (copy of all family members)

– Valid Work Visa (copy of all family members)

– US 3299 Declaration Form

– US Supplemental Declaration

– Power of Attorney Form

– Household Goods Inventory

Vehicle Customs Documentation

• Required Customs Documentation (in addition to previous slide)

– Letter of Compliance from vehicle manufacturer

– EPA Declaration Form 3520

– DOT HS-7 form

– Homeland Security form 7501*(original stamp required for registration in destination state)

U.S. Department of Homeland Security

• 2003 Bioterrorism Act

– Vehicle & Cargo Inspection Systems (VACIS)

Container

False Wall

Tractor Cab

C-TPAT – Customs Trade Partnership Against Terrorism

Goods – Packed by OwnerCounsel Transferee

Advise Educate

U.S. Tax Considerations

• Costs of moving household goods & vehicle are non-taxable expenses

• Storage-in-transit after 30 days is considered a taxable expense

USA to Canada

Household Goods Customs Documentation

• Required Customs documentation

– Valid Passport (copy of all family members)

– Valid Work Permit/Immigration Status

– B4 Personal Effects Accounting Document

– Household Goods Inventory

– Majority of Provinces – Personal Declaration is required

Vehicle Customs Documentation

• Required Customs documentation (in addition to the above)

– Recall letter from vehicle manufacturer

– Certificate of Title

– Export Clearance in USA is required

– Vehicle title needs to be provided to border crossing 72 hours in advance of arrival.

Canadian Tax Considerations

• Costs of moving household goods and vehicle are non-taxable expenses

• All Storage-in-Transit is a non-taxable expense

Timing

• Visa and Immigration

• Home Purchase

• Temporary Accommodations

Household Goods Providers

• Professional & Qualified

• Experienced in Cross-Border moves

Thank You!

Chris LesiukAssistant General ManagerTheMIGroup, CalgaryTel: 403-730-1616Chris.Lesiuk@themigroup.com

Questions ?