Canadian Government Extends Ban on Foreign Home Buyers Until 2027 to Tackle Housing Affordability Concerns
The Canadian government has announced an extension of the ban on foreign nationals and companies purchasing residential properties in Canada. The ban, which was originally implemented last year and set to expire at the beginning of 2025, has been extended until 2027. The extension is part of a series of measures aimed at addressing concerns about housing affordability in Canada.
Under the extended ban, foreign commercial enterprises and individuals who are not Canadian citizens or permanent residents are prohibited from buying residential property in the country. There are exceptions for individuals with temporary work permits, refugee claimants, and international students who meet specific criteria.
Those found in violation of the ban could face fines of up to $10,000 and may be required to sell the property.
The decision to extend the ban is motivated by the understanding that Canada’s housing challenges will not be resolved by the end of 2024. The government aims to assess how the market evolves and to gather more data on the impact of the ban, as much of the available data remains preliminary.
The ban is one of several measures the government is employing to address housing affordability issues. These measures include removing the GST on new purpose-built rentals and allocating funds to municipalities for housing initiatives.
While some experts question the ban’s effectiveness in addressing housing affordability, the government sees it as one tool among many in its efforts to tackle the issue.