festival condos floor plans.Canadian mortgage policy has not changed! A piece of news that the Bank of America has stopped the mortgage loans of Chinese citizens has been widely spread, and some people have given full play to their imagination to deduce the comet-like prediction that the Canadian housing market is going to collapse. Thrillers are certainly creepy.Please Visit: festival condos floor plans to Get Your VVIP Registration Today!
The origin of this news comes from the tightening of the mortgage policy of HSBC in the United States, which refuses to provide housing loans to Chinese people with visit visas, but do other American banks have the same policy? It is not mentioned in the article; similarly, does HSBC in Canada have the same policy? No, neither! Not to mention whether Canada’s own banks have any follow-up actions! Of course, the editor thinks that his imagination is not as good as others, and he is more willing to listen to the professional analysis of cattle experts. I believe my friends also want to hear it, right?
First of all, there is no official information within the Bank of Canada, that is to say, this issue has not been discussed at all, not to mention that it is not a matter to be considered, so the Bank of Canada will not follow up.
Secondly, the economic conditions of the United States and Canada are different, and the policies of banks are also different, so there is not much comparability.
Third, HSBC is an overseas bank in Canada and the United States, and it is a second-tier bank. Many of their policies are based on the bank’s global policy adjustments, which are not entirely related to the situation in Canada or the United States. If you just look at the situation of HSBC, the change in its policy has nothing to do with Canada at all.
Finally, the banking policy of Canada will not make any adjustments according to the changes in the policies of other countries or other overseas banks. In other words, Canadian banks will only make policy adjustments according to the actual situation in their own country.
1) generally speaking, the US economy is now on the rise, and although they also need foreign hot money to promote economic growth from the perspective of promoting domestic demand, it is not so urgent, especially for the RMB, which is gradually becoming the world currency. In order to maintain the stability of their own currency, they need to adjust policies to partly stop the influx of hot money too fast.
2) if the United States tightens the loan restrictions for overseas buyers to buy houses, it can also be out of the protection of domestic real estate. This measure is nothing more than to increase the cost of malicious real estate speculation by foreign speculators, but fundamentally, it does not prevent overseas buyers from buying property, but is just unwilling to provide “shell” support to help them make a profit.
3) foreigners who enter the United States to buy houses are also different from Canada. many of them are for the purpose of investment and ultimately for profit, while a large part of foreigners who buy houses in Canada are for immigrants to study abroad. At least it is because Canada, especially Vancouver, is good, and they buy property here so that they can often stay here for a short time in the future.
What is Canada’s attitude towards overseas hot money?
1) as we all know, Canada’s economy is not very ideal recently, especially after the fall in oil prices, foreign capital is needed to help boost the economy, and it is also hoped that the real estate industry can partially replace the energy industry. it plays a supporting role in the Canadian economy, so it is impossible for the government to introduce any restrictive measures on overseas buyers in the short term.
2) if it is the United States that wants to maintain economic stability and prevent hot money from going in to “make trouble”, while Australia on the other side of the world, which is also a country with a large influx of overseas immigrants, two years ago, it also introduced some measures to restrict malicious speculation in overseas real estate. In this way, for the Canadian real estate industry, it is an opportunity for development, and Canada yearns to pursue it.
3) Canada has now become the first choice for many overseas buyers, who come to study or buy houses to promote consumption, not to mention that many of them are preparing for the final settlement in Canada. The government has also seen this, and given Canada’s current economic situation, it is optimistic that this trend will succeed.
Canada is about to introduce measures to prevent real estate overheating, but it is aimed at all people.
1) increase the minimum down payment from 5% to 10%.
2) to adjust the transfer tax, the current increment tax rate is less than 200000, and the tax rate is more than 200000.
The above policies are aimed at everyone, not just foreigners.
1) the outward remittance of funds has changed from a “river running” to a long stream.
In response to the economic slowdown, it is necessary for the Chinese government to ensure that money stays at home to support the economy in response to the economic slowdown, in case the trend of money flight in the event of a falling currency spreads, creating a vicious circle. But for those who send their children to study abroad and travel abroad, these are reasonable needs and have not been restricted or affected.
The result is only to slow down the rate of capital outflow, for example, after the use of head remittance policy has been controlled, the form of capital outflow has changed from “river flow” to long-term flow, but the flow has not been cut off!
2) overseas students and Chinese buyers account for a small share of Canadian real estate.
The proportion of foreign students and overseas buyers in the Canadian real estate market is not as large as expected, although in Vancouver and Toronto, this proportion is slightly higher than other provinces and cities, and generally still relatively low; to say the least, even if the remittance of funds from these people is restricted, it is impossible for buyers who account for less than 10% of the market to shake up the entire Canadian housing market! Limited strength.
3) the potential of buyers of foreign students in Canada is far from being tapped.
Among foreigners in Canada, there are still many potential buyers who have not been developed, such as foreign students, who have only started buying houses in the past one or two years. As the whole group of foreign students, they do have demand, and, not only from China, but also from India, the Middle East and other countries, they have huge hidden purchasing power, which has not yet been excavated.