Canada has implemented a ban on foreigners buying residential property in the country, with exceptions for refugees and permanent residents who are not citizens.
The measure, aimed at making more homes available to Canadians facing a housing crisis, is temporary and will only apply to city residences.
- Canada has implemented a ban on foreigners buying residential property in the country.
- The ban, which took effect Sunday, aims to make more homes available for Canadians facing a housing crisis.
- Some exceptions are made for refugees and permanent residents who are not citizens to purchase a home.
- The ban will only apply to town residences, not recreational properties such as summer cottages.
- The measure is temporary, lasting for two years, and was proposed by Prime Minister Justin Trudeau during the 2021 election campaign.
- The ban was introduced by the Liberal Party, which said “homes are for people, not investors.”
- Major markets like Vancouver and Toronto have also introduced taxes on non-residential and vacant homes.
- The Canadian real estate market has cooled in recent months due to rising mortgage rates and efforts to control inflation.
- The median home price in Canada fell from $800,000 at the start of 2022 to just over $630,000 last month.
- Experts have questioned the effectiveness of the ban on foreign buyers, who account for less than 5% of home ownership in Canada, in making homes more affordable.
- Instead, they point to the need to build more housing to meet demand.
- The Canada Mortgage and Housing Corporation say about 19 million housing units will be needed by 2030.
- This means 5.8 million new homes will need to be built, or 3.5 million more than currently expected.
- The ban on foreign buyers has sparked controversy and criticism, with some arguing that it unfairly targets immigrants and international students.
- Others defended the measure, noting that it was needed to address Canada’s housing crisis and make homes more accessible to Canadians.
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