Foreign homebuyer data hard to access, BoC official claims
Bank of Canada deputy governor Tim Lane says the lack of data on foreign homebuyers in the country is making it hard to understand the housing market and financial system risks.
He added that “overseas home owners could respond more quickly to house price shocks, potentially exacerbating price moves”.
However, Lane said the indebtedness of foreign buyers would matter less on the Canadian financial system as long as their money to purchase homes come from their overseas countries.
Foreign buyers specifically boosted major property markets like Toronto and Vancouver, Reuters reported. The problem, however, lies on the accessibility to foreign market data.
"It's hard to know to what extent we have Canadian households getting more heavily indebted to buy the new homes and to what extent we have foreign residents who are doing that," Lane said.
"If they're not borrowing from the Canadian financial system then it doesn't create the same immediate financial stability risk.”