Liberals and NDP push feds for greater mortgage oversight on B.C. homes
Justin Mcelroy | CBC News | Posted: September 15, 2016 1:59 AM | Last Updated: September 15, 2016
David Eby reveals 9 university students are listed as owning homes worth $57.1 million
With the City of Vancouver announcing a vacant home tax and the B.C. government imposing a foreign buyers tax, could the federal government be next?
The two main provincial parties hope so.
On Wednesday, each called on the Canadian government to do more to help cool the Lower Mainland's housing market.
At a news conference this afternoon, NDP MLA David Eby unveiled research showing nine university students had purchased $57.1 million in residential properties in Vancouver, with 70 per cent of that value tied to mortgages from Canadian banks.
"The question [that] should be asked is: did banks issues mortgages to people who have no apparent source of income?" said Eby.
Eby said the province should immediately review two years of transactions to see how common mortgages are for home buyers who have no perceived legitimate source of income.
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But he also said the provincial government needs to push the federal government to increase scrutiny of those from outside Canada looking for mortgages here.
"It's absolutely outrageous that a Canadian that's working, living and paying taxes in B.C has to provide even more information and cross even more hurdles than someone who is not a B.C. resident," he said.
"If you're not working in B.C., not living here, you should have to provide additional documentation to show your source of income and that your money is coming from a proper source."
Minister wants fast-tracked investigation
British Columbia's housing minister is asking the federal government to step up its efforts to crack down on real estate money laundering.
Rich Coleman released an open letter to Jean-Yves Duclos, the federal minister responsible for housing, asking that Ottawa collaborate with B.C. to solve the province's "critical" housing issues.
"The issue of housing affordability is complex and will require a number of innovative solutions but by working with your government and all levels of government, we are confident that solutions can be found," the letter read.
Coleman called on the federal government to provide funding and land to build affordable housing and create tax incentives that will encourage the creation of more rental units.
Coleman also said he's encouraged the Canada Revenue Agency is taking more steps to find real estate tax evaders but wants government to expedite the process.
With files from Richard Zussman and the Canadian Press