Major Canadian bank says “no thank you” to foreign capital

The CEO of the Royal Bank of Canada wants you to know Canadian property is not your piggy bank

Mar.March 10, 2018 12:00 PM

From left: Dave McKay, CEO of RBC; RBC Place Ville-Marie (Credit: Reuters/Gary He courtesy RBC; Henrickson)

No apologies were uttered by Royal Bank of Canada CEO David McKay when he declared his stance on foreign investment at a recent bank conference.

“We do not need foreign capital using Canadian real estate as a piggy bank,” said McKay, according to Bloomberg. “If capital is coming in to sit in a home, unproductively, and is distorting your marketplace and the livelihood of your residents — no thank you.” McKay’s bank, RBC, is the largest mortgage lender in Canada.

McKay’s statement comes as the government continues its crack down on foreign capital pouring into housing markets in the cities of Toronto and Vancouver by introducing new regulations and taxes. Housing markets in both cities have been on fire for years putting local residents in a pinch and even pushing some Toronto developers into American markets.

McKay admitted surging home prices are being caused by a “cocktail of factors” in addition to foreign buyers, such as the cost of land and population growth, and is in favor of intervention on all fronts, including newly implemented lending rules for would-be home buyers.

All McKay’s looking for is “a little bit more healthy dynamics,” and he is getting his wish: Toronto’s housing market is in correction according to the Toronto Real Estate Board’s data which recorded February as the city’s weakest month in homes sales in nine years. [Bloomberg]Erin Hudson

Related Articles

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Sidewalk Labs CEO Dan Doctoroff and a rendering of the tower (Credit: Sidewalk Labs/Michael Green Architecture and Gensler)

Alphabet’s wooden skyscraper in Toronto could be tallest in the world

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand