CMHC Report: A new report was published today confirming that foreign ownership in Canada remains low. This confirms what we have been talking about over the last couple of months and shows the federal government holding a smoking gun pointed directly at the Canadian Real Estate Market and the heads of first time homeowners. It is my opinion that the new measures that were brought into effect last month are systematically trying to destroy the Canadian Real Estate Market and line the pockets of big banks by preventing Canadian homeowners from refinancing toxic debt.
When the new measures were brought into place they were supposed to discourage foreign investors from buying properties in Canada. This would reduce home prices. This is the lie we were fed by the Federal Government and CMHC however if you listened to the interviews I did on various news networks and on my blog posts, I clearly said that foreign investors do not get mortgages, this means that the new rules will have ZERO impact on foreigners but will hit Canadian homeowners square in the jaw. This new CMHC report proves that foreign investors were not the target for the new changes made but rather hard-working Canadians
For those that have not read my blog post that talks about the effects of the recent mortgage changes and how they will do nothing to slow down foreign investors click here
The National report concluded that foreign ownership of condominiums is highest in Vancouver and Toronto at 2.2% and 2.3% respectively. The report also mentioned Montreal with foreign ownership hovering around 1.1%. Outside of these markets, foreign ownership drops to 0.2% to a high of 1.2% in Halifax.
The CMHC report also mentions that 40% of foreign buyers who purchased a unit in 2015 did so without the securing a mortgage. That means they bought the properties cash.
Bob Dugan, Chief Economist, CMHC is quoted saying, “Foreign ownership is just one factor influencing Canada’s housing markets – but it’s an important one that continues to gain attention. Our studies show that the share of foreign ownership remains low and concentrated in newer, larger buildings located in the cores of major cities like Vancouver, Toronto, and Montreal. We continue to work with our partners in finding new ways to bring this important story into sharper focus.”
National Report Highlights
- Foreign ownership of condominiums was highest in Vancouver and Toronto at 2.2% and 2.3%, respectively. However, both markets saw a decline in the share of foreign ownership compared to last year.
- The 2016 shares in both Vancouver and Toronto were more in line with those in 2014. The relatively higher shares observed in 2015 were due to an unusually high proportion of foreign ownership in newly constructed condominiums that year relative to 2014 and 2016.
- Foreign ownership in Montréal remained relatively stable at 1.1%. Foreign ownership remains higher in Downtown Montréal and Nuns’ Island, at 4.3%.
- Outside of the above mentioned CMAs, the share of foreign owners ranged from a low of 0.2% in Saskatoon and Regina to a high of 1.2% in Halifax.
- Foreign ownership continues to be higher among newer and larger buildings in the central areas of Toronto and Vancouver. In Toronto, the share of foreign ownership rose to 3.9% in buildings completed since 2010 and in buildings with more than 500 units, it rose to 5.5%. In Vancouver, newer buildings saw a 5.0% share of foreign owners while buildings with more than 100 units reported 3.2% share of foreign owners.
Montreal Report Highlights
- In 2015, between 4% and 8% of foreign-owned condominium units in Montréal were left empty.
- 40% of foreign buyers who purchased their unit in 2015 did so without the use of a mortgage. For all buyers (Canadian and foreign), this proportion was 15 percent.
- The condominiums owned by foreigners in central sectors of Montréal generally had higher values than those owned by Canadians.
- Since the beginning of 2016, the number of foreign buyers in the Montréal area, while remaining limited, recorded an increase over the same period in 2015. The greatest gain was registered among investors from China, however, it’s important to note that this represents only about 30 additional buyers.
As always I am available for comment or to answer any questions you may have regarding the CMHC report