Canada bans most foreigners from buying residential property

Canada has officially begun banning the purchase of residential property for foreigners in an effort to make more housing affordable for local residents facing a housing crisis.

As an exception to this prohibition, the law allows persons such as refugees and non-citizen permanent residents to purchase houses.

In late December, Canada confirmed that the ban would only apply to urban housing, and not to recreational properties such as summer cottages.

The two-year temporary measure was proposed by Prime Minister Justin Trudeau during his 2021 re-election campaign when rising prices made home ownership out of reach for many Canadians.

According to the Canadian Real Estate Association, median home prices have fallen from a peak of over 800,000 Canadian dollars ($590,000) in early 2022 to just over 630,000 Canadian dollars ($465,000) last month.

Several experts also said that a ban on foreign buyers, who make up less than five percent of Canadian homeowners, according to the National Statistics Office, would not have the desired effect on increasing housing affordability.

Source: ETRealty