Banks aiding foreign buyers in Canada
Foreign buyers driving up home prices in Canada is a very confusing thought. The allegations that foreign buyers most especially from China are to be held responsible for the rising home prices are very absurd. For many, Chinese investors use the Canadian real estate market as investments rather then purchasing homes to reside in.
However, the government has very little data about foreign buyer’s involvement in the real estate market to back the claims to people hence the government is in urgent need to get more details on the extent at which foreign buyers are affecting the market.
The search of data by the government was does not have to be long or tedious as banks are very much aware of how deep foreign buyers are engrossed in the Canadian real estate.
According to Statistics Canada, the international debt ratio has increased since the recovery of the Canadian currency with an excess of C$500 billion.
This has lead to an overall foreign debt financing of Canadian banks to C$850 billion.
Foreign investors are also to infiltrate the real estate market through banks regardless of their status in the market.
Next week, Statistics Canada is expected to release its report on the country’s present account deficit. That is to say the amount of debt Canada has incurred from other countries to fund its expenditure. However towards the ending of 2016, with a boom from oil exports, the country was able to decline its debt
Foreign investors are very confident in the Canadian economy which makes they more willing to fund Canada’s expenditure.