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RBC Chief Sounds Alarm on Flood of Foreign Cash in Canadian Real Estate

  • ‘No thank you,’ McKay says to unproductive capital in homes
  • Intensive bidding is beginning to ease as prices stabilize
Aerials Views Of Toronto As Housing Prices Fall For Fourth Month
Photographer: James MacDonald/Bloomberg

Foreign inflows are distorting Canada’s already constrained housing market and aren’t the kind of investment the country needs, the chief executive officer of Royal Bank of Canada said.

“We do not need foreign capital using Canadian real estate as a piggy bank,"  David McKay, said Tuesday at a bank conference in New York hosted by the Toronto-based lender. “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."