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Bank of China (Canada) mortgages are increasing in Ontario rather than British Columbia.

At first glance, the numbers are “a pretty good indicator of where Canada’s (some) foreign-earned capital is heading in the real estate market,” said Andyan, director of SFU’s city program. increase.

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The value of mortgages issued by the Bank of China (Canada) over the last six years has increased significantly in Ontario compared to BC, with policies and taxes to curb demand in BC, especially Vancouver. It suggests that it is effective to some extent.

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British Columbia real estate mortgages issued by a Canadian subsidiary, one of the world’s largest banks, leveled off around the end of 2017, declined in 2019, but continues to grow in Ontario. ..

According to a new analysis of the bank’s disclosure statement, the value of mortgages issued by BOCC to real estate in British Columbia increased from $ 40 million in 2015 to $ 121 million in 2021. Real estate in Ontario increased from $ 139 million in 2015 to more than $ 1 billion in 2021. ..

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These numbers are only a small part of the total mortgage debt held by Canadian banks, stressed Andyan, director of the City Program at Simon Fraser University.

“But it’s interesting to get a glimpse,” he added, adding that the BOCC numbers are “a pretty good indicator of where Canada’s (some) foreign-earned capital is heading in the real estate market.” ..

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On Monday, Yang was part of a panel addressing the Commons’ Finance Standing Committee on inflation in the Canadian economy and housing markets.

He recently compared census data to understand the role of vacant or underutilized homes in an affordable crisis, and between 2016 and 2021, non-main residences in Vancouver. We found that the number of people decreased by 10% and increased by 40. Percentage of the city of Toronto.

He speculated that the decline in Vancouver and other cities in British Columbia could be due to city and state regulations and taxes that weakened demand for homes that were not used as primary residences.

For years, Yang has analyzed how global capital and lending practices by banks operating in Canada are shaping Metro Vancouver’s real estate market.

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This time, we looked for online disclosures by foreign banks operating in Canada, such as CTBC Bank, SBI Canada Bank, HSBC Bank Canada, and Industrial and Commercial Bank of China (Canada). CIBC, RBC, TD Canada Trust. He confirmed that only the Bank of China (Canada) contained certain geographic and other details in the B-20 document for the federal government.

The Bank of China (Canada) mortgages are uninsured, but the average loan-to-value ratio is as low as about 60%, suggesting that the average repayment is at least 40%.

British Columbia introduced a 15% foreign buyer tax in 2016, Vancouver’s empty housing tax and Ontario’s non-resident speculative tax came into effect in 2017, and the state introduced a foreign buyer tax in 2018. Raised to 20%, speculation and vacancy tax in 2019.

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“Although the dollar value of British Columbia mortgages has leveled off (since 2017), the population of Chinese Canadians in Toronto and Ontario has not doubled, but at the same time more.” He said.

Andrei Pavlov, a professor of real estate finance at Simon Fraser University, said the change was interesting and could be due to measures to curb demand, such as foreign buyer taxes. In Ontario, it’s small. “Because (both) are small, I don’t draw many conclusions from the fact that 90 percent of their portfolio is in Toronto.”

jlee-young@postmedia.com

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Bank of China (Canada) mortgages are increasing in Ontario rather than British Columbia.

Source link Bank of China (Canada) mortgages are increasing in Ontario rather than British Columbia.

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