Dwight Trafford -Owner Rock- Capital Investments
“Money laundering through real estate is estimated to be worth over $50 billion annually; some estimates put it at over $100 billion. These numbers dramatically affect the cost of homeownership for Canadians in the targeted areas.
We all expect to pay more in Vancouver and Toronto, but if housing prices are artificially high due to money laundering, legislation would be welcomed.
It is well-known internationally that Canada is a hot spot for this activity. A public registry of beneficial ownership is on the horizon, but our laws need to change to combat the effect on Canadians’ ability to purchase.”
Hernan Parada -Co-owner and principal broker -The Mortgage Professionals
“Money laundering is a reality in the real estate and mortgage industries, and legislation is therefore absolutely a requirement. As we dig deeper into Canadian real estate data, we are beginning to see increased trends of money laundering, especially in BC and the GTA.
If legislation is weak or nonexistent and crimes go unpunished, then Canada could become a haven for money laundering. This could have long-lasting negative effects on Canadian real estate markets, leading to inflated prices and making homeownership unaffordable for law-abiding Canadians.”
Bill Nugent -Mortgage broker/owner -Neighbourhood Dominion Lending Centres
“I do not believe that we need more legislation to prevent money laundering in the housing industry. We presently have FINTRAC, the country’s financial intelligence unit, to trace the origin of money given to Realtors as down payments on properties, and financial institutions are tracking the funds that are given to the seller in the form of money drafts or certified cheques to complete purchases.
What might be needed is greater enforcement on the part of the government – i.e. inspections of financial institutions to ensure that they are following the rules that stipulate establishing the origin of the funds.”