Government Extends Foreign Property Buyer Ban Until 2027
1.5 min read.
To tackle the persistent housing affordability crisis, the Government of Canada has extended the ban on foreign property buyers for two years, until January 1st, 2027. This bold decision continues a policy introduced in 2022 to bolster the availability of housing units for Canadian citizens amidst soaring property prices.
The ban's initial implementation came against the backdrop of a housing market with skyrocketing prices. To ensure that residential properties serve their fundamental purpose as homes for Canadian families, the ban prohibited foreigners from purchasing properties within Canadian borders, with exceptions for international students, refugee claimants, and temporary workers.
Housing has emerged as a central point of contention, with millions of Canadians struggling to find affordable accommodation. According to the Canada Mortgage and Housing Corp. (CMHC), an additional 3.5 million homes must be constructed by 2030 to address the pressing affordability concerns. Finance Minister Chrystia Freeland said, "By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do not become a speculative financial asset class." Restraining speculative investment by non-residents could create opportunities for Canadian homebuyers, particularly first-time buyers and low-to-middle-income families. It is necessary to safeguard Canadian residents' interests and ensure the housing market's long-term stability.
While Canada is addressing its housing crisis, the extension of the foreign property buyer ban signals a commitment to enacting bold and decisive measures to address one of its most pressing challenges. With housing affordability remaining a top priority on the government's agenda, stakeholders hope concerted efforts will yield tangible results in creating a more equitable and accessible housing market for all Canadians.
References
Brend, Y. (2023, December 26). Why Canada’s ban on foreign buyers hasn’t made homes more affordable | CBC news. CBCnews. https://www.cbc.ca/news/canada/british-columbia/canada-foreign-buyer-ban-housing-affordability-1.7058154
Moosapeta, A. (2024, February 7). Canada extends foreign home buyer ban until 2027. CIC News. https://www.cicnews.com/2024/02/canada-extends-foreign-home-buyer-ban-until-2027-0242824.html#gs.6z1q1w
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