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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
Questions ?
