All posts by karimkanji

Mr. Housing Bubble? Hmmmm….

Summer has officially begun!

I hope you are enjoying my monthly emails. I trust they are informative and interesting.

Following this introduction is an article by Garth Turner who is the MP for Halton, just outside Toronto. You can read the original at

Luxury homes in Victoria are selling at a faster clip this year than last as local and out-of-town buyers seek out high-end properties. A climb in real estate prices (37 per cent in the last two years) is pushing more homes past that deluxe marker.

“Million-dollar home sales are climbing at a rate never before seen in major centres across the country,” says Michael Polzler, executive vice-president and regional director RE/MAX in Ontario and Atlantic Canada. “The Canadian love affair with real estate is far from over. If the market continues at this pace, existing sales records for all types of real estate, including upscale properties, will be shattered by year end.”

The most expensive home sold locally so far this year went for $8.4 million. The highest-priced home listed on the MLS is on Oak Bay waterfront with a $25-million price tag. Prices across the country continue to rise for everything from starter homes to posh mansions.

The Canadian Real Estate Association noted in mid-June the average price of a home in major cities topped $300,000 for the first time.

And the B.C. real estate market surpassed the $4 billion in sales for the first time.

A total of 11,338 homes, worth more than $4.52 billion, sold through the multiple listing service in May, said the B.C. Real Estate Association.

In Greater Victoria, the average price of a single-family house in May was $515,755 in May, while the median was $447,450. As prices rise, it is likely that RE/MAX will move its survey level to $1.5 million and more, said Elton Ash, regional executive vice-president for RE/MAX in Western Canada.

Well, there ya go. Everybody’s doing it. Have you got your luxury house yet?

Re/Max is out there priming the housing pump, and doing damn well at it, considering the amount of ink the latest news release generated. In fact, we have now entered a new and terminal phase in a real estate market that is just about guaranteed to end it badly. Think Nortel. Now think house. Oh, maybe not to the same degree, of course – with a loss of 90% of market value – but just as much emotional carnage. You see, far less than 10% of Canadian investor net worth was in Nortel stock, while more than 80% of all family assets are now in real estate.

The above news story, of course, is ridiculous. It gives the impression that most houses are selling for vast sums, and being snapped up by voracious people inherently smarter than you. The reality is the average family income today is $54,000, and that family can afford mortgage payments of no more than $2,000 a month, or enough to support a $300,000 mortgage at 5.5% with a 25-year amortization. So, with a hefty 25% down payment, this family can live in a $400,000 house, but only after managing to save $100,000. By the way, this family would also be eating a lot of KD – maybe even going to the food bank – because their debt service ratio would be off the chart.

But, hey, everybody’s doing it. The average house price in Toronto (counting in zillions of cheapo suburban condos) is $366,000; in Victoria it is $515,000; and in Vancouver approaching $700,000. In fact, a news item widely heard a few weeks ago forecast average Van prices of $1.2 million by the time the 2010 Olympic games arrive.

My point is that when the biggest headlines are reserved for the price of houses, like they were for Nortel at $120 a share, you should take notice. The end game has begun.

What does this have to do with politics? Everything, of course. People with houses rising in value feel wealthier and are likely to vote for politicians and governments they perceive will leave the market alone to make them rich. People with houses falling in value are in a funk, especially when they may have bought at the top, mortgaged too much or have just gone and spent a chunk of their disappearing equity. They vote another way.

My theory is that within a year, the brew of rising interest rates, erosion of manufacturing jobs, a natural economic slowdown, the brake of rising energy costs and a wheels-coming-off US recession could seriously pierce the housing bubble enveloping us today. This will come despite all the hype of real estate gurus, and the criticism heaped upon me for saying so by those with a vested interest in house prices going up forever – which today is almost everyone. Best case scenario – I’m wrong. Real estate becomes completely unaffordable to the average family. Worst case – I’m right. The market corrects just as it did in the 1990-1994 period. Listings swamp demand and prices slump. The last buyers in, take a long, cold bath.

This kind of thing has happened before, but never with the stakes this high. Mortgage debt and house prices have spiked together, fed by the cheapest money in a generation. T here is now an entire population of buyers who know of prices doing only one thing. This is a market without history. Never good.

And while I am not an interventionist kind of guy, I fear the housing meltdown could be nationally paralyzing and politically disruptive. Strikes me a prudent government might want to consider trying to slow this baby down, so the inevitable train wreck is at least foreseen. How about:

(1) Slowly increasing the minimum down payment of 5%?

(2) Disallowing, or discouraging, interest-only mortgages?

(3) Immediately reviewing the new practice of extending 35-year amortizations, which some say are on the way to 50?

(4) Suspending for a period of a few years the ability of first-timers to dip into their RRSPs for down payments?

(5) Closely monitoring new players in the high-ratio mortgage insurance biz to make sure buyers are qualified?

(6) Duct-taping the mouths of Re/Max spokespeople?

Let’s talk a year from now, seeing if these ideas seem too radical then.

Food for thought, I’d say! Well, that’s all for now folks! Remember, if you are in need of cashflow, call me at 1.800.265.2694. RealCash continues to be the leader in commission advances for real estate professionals in Canada. Thanks to you.


Karim Kanji – Marketing & Sales




It’s here. There is no doubt about it. East Coast humidity, Stanley Cup finals (Go Oilers Go!), and Real Estate golf tournaments!

Golf. Real Estate. Summertime. They all go together like hand and glove. Over the years we have been fortunate to be invited to many golf tournaments across Southern Ontario. It seems that real estate professionals, mortgage brokers and commission advance guys love to golf. It’s a sport that demands the best and sometimes exposes the worst in all of us. Golf takes patience, accuracy, strength, goal setting and future thinking. However, golf also brings out the beast in many players. Colourful language and red faces sometimes can be seen in many golf courses around the country. Why? I think it’s because of the Tiger factor.

No. I’m not talking about Tiger Woods’ economic impact on society. I’m talking about the fact that many of us – because of Tiger – now watch golf. And it seems so easy! Putting!? How can that be so hard?! We all beleive that we can play as well as those professionals on TV. No wonder we lose patience at the first sand trap or pond. Admit it. We’re not as good.

Same thing goes for real estate. Buying and Selling a house? Why go to a real estate professional? How hard can it be walking through a home? Well, you and I know the benefits you bring to the whole transaction and process. I, for one, would never go through the process without a licensed real estate professional. Hey, it’s what you do for a living. The rest of us just know how to live in one.

Kinda like commission advances. Sure, there are other companies around. RealCash Bancorp Inc. is the only company that was started from scratch. RealCash wasn’t a greedy broker’s idea. RealCash was not even started by a mortgage company looking to further cash in on the hot housing market. RealCash was not even a banker’s idea! RealCash was created by a University of Windsor economics graduate named Joe who saw a need in the market – And Filled It. That was over 13 years ago. We are still in business and Joe still runs the ship. I beleive we are the most reliable, cost-effective and knowledgeable company in the country when it comes to commission advances for real estate professionals.

However, don’t take my word for it. Visit our website at See what our clients have to say about us. A wise man once said, “I can tell a lot about a person based on the company they keep.” I hope you’ll visit us and see how we can help you.

Now, if only I could persuade Tiger to help me with my long game….

Dear Friends in Real Estate:

The following is from Garth Turner who is the MP from Halton.

House of Commons
Hon. Garth Turner, PC, MP

Tax cut helps keep Canadian dream affordable

OTTAWA – The dream of home ownership was given a boost yesterday when the first Conservative budget in 13 years sliced the sales tax on new houses by a full percentage
point. That will have the effect of saving buyers of a $200,000 home more than $1,200 and more than $3,000 on homes priced above $300,000.
“This is money that simply does not need to be borrowed by many new homebuyers, reducing the size of the mortgage,” MP Garth Turner says. “That is good news because it
increases the affordability of new homes at a time when rising prices have forced many buyers out of the market, plus it improves family finances by reducing debt for others.
This is a great example of a government budget policy actually improving the lives of Canadians in a fairly dramatic way.”
The federal budget reduced the federal goods and services tax from 7% to 6%, effective July 1. Houses for which sales agreements are signed after the budget date, and which
close after July 1 will have the new, reduced tax in place. Homes which have already been purchased, but are not yet occupied, will also get the tax break, by way of a tax
adjustment, reducing the GST to 6%.

Today at a media event at a soon-to-be-built new housing development in Kanata, outside Ottawa, Canada’s largest home builder, Mattamy Homes, voiced its approval of the GST
reduction. In addition, officials of the Ottawa Carleton Home Builders Association made it clear that the lower sales tax and the increased affordability it brings are great news for
an industry starting to be impacted by the spiralling price of residential real estate. “This appears to be a winning situation not only for homebuyers, but for the industry
providing those houses,” Turner said. ”Many experts believe that in the eighth year of a real estate expansion that rising construction costs and restricted land availability would
squeeze out more and more buyers. So the timing of this GST cut could hardly be better. It is a small but highly significant step in ensuring the Canadian dream stays alive for
hundreds of families who will move into houses in these fields which are now just empty. It shows this government is committed to taxing people less, and improving their lives.”

For more information:
Garth Turner, MP (613) 996-7046
Beth Shropshire, Mattamy Homes (416) 466-7044
– 30 –
House of Commons
Hon. Garth Turner, PC, MP

GST impact on new home buyers


The 2006 Federal Budget has reduced the rate of the Goods and Services Tax from 7% to 6% on all taxable items, effective July1, 2006. Currently the GST applies to the sale of
new homes, and the impact of the tax is offset by the New Housing Rebate, which is equivalent to 36% of the tax payable.
There is typically a lag time of several weeks or months between the time a purchaser agrees to buy a new home and becomes legally committed to doing so, and the actual
day the transaction is completed and possession takes place. The budget makes it clear that buyers signing purchase agreements on any day after the budget was announced
will receive the lower tax rate, regardless of whether occupancy occurs before or after July 1.

Under the proposed measures, the following specific transitional rules will apply in respect of sales of real property.

Ownership or Possession Transferred before July 1, 2006: The 7 per cent rate will apply to all of the consideration for a supply by way of sale of real property if ownership
of the property, or possession of it under the agreement of purchase and sale, is transferred to the buyer before July 1, 2006.

Ownership and Possession Transferred on or after July 1, 2006: The 6 per cent rate will apply to all of the consideration for a supply by way of sale of real property if under
an agreement of purchase and sale entered into after May 2, 2006, both ownership of the property, and possession of it under the agreement, are transferred to the buyer on
or after July 1, 2006.

Written Agreement Entered Into on or before May 2, 2006: For sales of houses, apartment buildings and other residential complexes, made pursuant to a written
agreement entered into on or before May 2, 2006, GST will apply at the rate of 7 per cent, even if ownership and possession of the real property are both transferred on or
after July 1, 2006. In these circumstances, where transfer of ownership and possession both take place on or after July 1, 2006, the purchaser will be entitled to file a claim with
the Canada Revenue Agency to be paid a Transitional Adjustment that reflects the GST rate reduction to 6 per cent net of any corresponding rebate adjustment.

(For more details please refer to


Karim Kanji

Zig Ziglar

Dear Sales Representative,

Welcome to May’s edition of RealCash’s email newsletter. I sincerely hope that April was a fulfilling month for everybody. The real estate market continues to boom in spite of many pundits saying it’s gonna crash. While I do believe that the market will slow down, I don’t think it’s gonna crash. However, that’s just my opinion…and hope…….

The month of May brings two time honoured traditions: Mother’s Day and the May Long Weekend! Did you know that Mother’s Day is the busiest day in the year for restaurants? And May Long Weekend? Well, I call it the un-official start of summer! This year, it’s Mother’s Day that plays a very important role in my life. As many of you may know we just welcomed a baby boy into the world just 7 short weeks ago. That makes my wife a mother! Wow!

I was thinking of this day as I was wondering what to write for this month. I decided to open up the floor to you: My customer and potential customer.

RealCash Bancorp Inc, as you know, provides commission advances to real estate professionals across Canada. Simple. However, I understand that maybe we’re missing something. Is there more we can provide? Is there a simpler way of providing our service? What can RealCash do to financially assist YOU in your business? This is what I need to know. What I want to know. Frankly, it’s what I should know, because you are my bread and butter.

So, please, take a short moment and drop me a line at As Zig Ziglar has said,”You can get everything in life you want if you will just help enough other people get what they want.”


Karim Kanji

HomeLife National Conference

Dear HomeLife Salespersons/Brokers/Owners/Administrators,

Like the Chambers Brother once sung, “Time Has Come Today.” It’s once again time for the Annual HomeLife National Conference.

For RealCash, it’s back to the future. The 2003 Conference in Niagara Falls was our first HomeLife Conference. This was soon after we were approved to be an approved supplier for HomeLife. Ever since then I have had the opportunity to meet so many interesting and nice HomeLife members. Furthermore, you have given me and my company the opportunity to serve your needs.

With the continuing “boom” in our industry there have been a number of new players in our game. And new players always means more confusion. Confusion over who is better and why. Confusion over what makes one advance company better than the other. It’s the same questions you are asked by potential clients, “Why you and why HomeLife?”

Well, as always, my job is to help you navigate through the murky waters of commission advances. In Niagara Falls I will do my utmost to answer all your questions and even listen to any and all of your suggestions and comments. If you are attending the Thursday Broker meeting I will present a 10 minute synopsis of why RealCash is the best company for all of you for your salespeople’s commission advance needs. On Thursday and Friday I will also be at our RealCash booth. So please come and say hello.


Karim Kanji


RealCash Bancorp Inc.Canada’s largest, favourite and most affordable source of Commission Advances for the Real Estate Professional

No Gimmicks…Just Cash!

National Toll-Free: 1.800.265.2694

Just Think

Dear Friends,

Was March a barn-burner for you as it was for us? I sure hope so! Business was booming while our family welcomed it’s newest edition! Kahzmir Amin Kanji was born on March 13th at 10:26am in Women’s College Hospital. Kahzmir is doing great and his parents are sleep deprived! Our heartfelt thanks to all our family and friends and especially the wonderful people at Women’s College Hospital in downtown Toronto.

I hope these newsletters are helping you to better understand the role of commission advances in your life as a real estate professional. We’ve discussed how an advance can assist you in paying your taxes in time and, more importantly, how a draw on your commission can help you increase your marketing exposure and business. So, what am I going to write about this month?

Thinking outside of the box. Yes, I know this has become a cliché. Let me explain. Just down the street from our office sits a 50 year-old shopping mall that’s about to be torn down and rebuilt. At first glance I thought this was great. Growth is always great…isn’t it? Well, it’s supposed to be…

On my daily perusal of the nation’s newspapers I came across an article about this mall and it’s tenants. Unhappy tenants. Business owners and employees who will be out of work and out of business in a few short months. Oh yeah. I forgot about them.

As a real estate professional you have the ability to create unlimited wealth and opportunity. Income as large as you want! Flexible working conditions that allow you to catch baseball’s Opening Day in Toronto or the Stanley Cup Finals in Calgary! March, April, and May will see you have a couple of dozen closings and hundreds of thousands of dollars in commissions! You go on vacation, upgrade your SUV, register your child in a private school, take your spouse on a shopping spree. Soon enough the closings dry up and so does your income. Mortgage payments, car payments, desk fees and cellular bills start knocking on your door. What about your savings? Savings? Studies show that the rate of savings in Canada is somewhere between zero and negative. The rat race is not the exlusive domain of the employee…

Don’t tune me out. I’m here to help. Think about this: You take an advance on all your deals. You take 50% now and 50% after closing. What does this do? It decreases your paycheque but increases the number of paycheques you get. After taxes your income hasn’t changed much. Furthermore, your desire to splurge will decrease, thus freeing up resources and allowing you to continue to maintain your lifestyle. Instead of “rewarding” yourself for a “hot market” you reward yourself for hitting your goals.

Now that’s what I call thinking outside of the box…

That’s all for now. I hope you’ve learned something new that can help you in your career and business. I hope to also receive any feedback and suggestions from you on how we can better serve our clients and potential customers. Keep an eye on your inbox every month this year on informative articles.

Remember, visit our website at and read what some of our clients have to say about us.

Thank you for your time!


Karim Kanji


RealCash Bancorp Inc.

Canada’s largest, favourite and most affordable source of Commission Advances for the Real Estate Professional

No Gimmicks…Just Cash!

National Toll-Free: 1.800.265.2694

Income Taxes and Commission Advances

Dear Friends,

Wow! February is over! What is it that “they” say about March? In like a lamb out like a lion. I wonder if this expression has anything to do with the weather? Or maybe the current real estate “boom”? Or could it be a sly reference to income tax season? I bet it has something to do with all three. Well enough of my rambling…

Last month I promised you that I would educate you on the benefits of commission advances for you and your business. Over the past few weeks we have been swamped with phone calls. I am also sure some of our competitors have received phone calls as well. Why? Because many questions and comments where about price. “Your rates are too high!” “How much is your Administration fees?” “Are there any more hidden costs?” Fair comments and questions. Here is what you need to ask your provider:
What is your daily rate?
What is your administration fee?
How much is your hold-back charge?
If all you ask is the rate then that is all they will provide you with. (By the way, RealCash Bancorp Inc. charges only a daily rate. In case you were wondering…) I hope this clears up any questions and concerns. Now on to some exciting stuff!

Income Tax! How can a commission advance help you pay your income tax?

The facts: Your tax bill is due and you need extra cash flow during that month to pay off this extra expense.

The solution: Call your commission advance provider and obtain an advance on a firm residential re-sale. You’ve already earned the money. Borrow it from yourself. The associated costs are tax deductible and you have extra cash flow to pay Mr. Harper. You now have 30, 60, 90 days (or even longer!) to replace that commission with another listing or sale. No hassles with the bank or credit companies. Now isn’t that simple?

For more information on this new tax tool please give me a call at 1.800.265.2694 or drop me a note at .

That’s all for now. I hope you’ve learned something new that can help you in your career and business. I hope to also receive any feedback and suggestions from you on how we can better serve our clients and potential customers. Keep an eye on your inbox every month this year on informative articles.

Remember, visit our website at and read what some of our clients have to say about us.

Thank you for your time!


Karim Kanji


RealCash Bancorp Inc.Canada’s largest, favourite and most affordable source of Commission Advances for the Real Estate Professional

No Gimmicks…Just Cash!

National Toll-Free: 1.800.265.2694

The Role of Commission Advances

Dear Friends,

As we finish the first month of this new year and start a second month, many successful real estate professionals re-visit their quarterly and annual goals. Many of you will even be taking courses to help you generate more business, more profits and more free time! I met a number of people like you this past week at a training workshop on Lead Generation. What was I doing there? All of our business are about generating leads. Whether in the real estate business, the commission advance industry or even traditional businesses – we all need to generate leads. So, I was there to help grow my business by meeting prospective new clients and to learn how RealCash can generate more leads.

Rick, the class instructor, comes from the States with a wealth of background and success. I had an opportunity to speak with him and pick his brain on the issue of commission advances and real estate in Canada and the U.S. What many of you already know (or don’t know) is that the “tool” of commission advances for real estate professionals is very popular in the United States. And I wanted to find out why. Is it a cultural difference? Are American Realtors smarter than their Canadian cousins (or vice versa)? Why is it that American Realtors and Brokers understand the powerful and positive role that commission advances play in their business? Why do Realtors at every income bracket use commission advances? Here was the answer i received: Because the concept of commission advances is understood down south. That’s all? That’s all!

So, my duty this year is too educate you on the benefits of commission advances and it’s role in the business model of the Canadian real estate professional. I hope to also receive any feedback and suggestions from you on how we can better serve our clients and potential customers. Keep an eye on your inbox every month this year on informative articles. If you wish to opt out of my emails please reply back and let me know.

To kick off this campaign, visit our website at and read what some of our clients have to say about us.

Thank you for your time!


Karim Kanji


RealCash Bancorp Inc.Canada’s largest, favourite and most affordable source of Commission Advances for the Real Estate Professional

No Gimmicks…Just Cash!

National Toll-Free: 1.800.265.2694


Welcome to RealCash Bancorp Inc.’s own Blogspot. To visit us online please check out . We will be glad to be of service to you!

Karim Kanji

RealCash Bancorp Inc.

“Commission Advances for the Canadian Real Estate Professional”
“No Gimmicks…Just Cash!”