Ottawa: Foreigners have been banned from buying residential property in Canada in order to provide more homes to locals facing housing shortages. This ban has come into effect from January 1.
The Canadian government has also made it clear that these restrictions will only apply to city residences. This ban will not apply to properties like summer cottages.
Canadian Prime Minister Justin Trudeau proposed this property for the convenience of local people during the 2021 election campaign. Due to rising prices in Canada, many people are out of reach to buy a house. Foreigners have been banned from buying residential property in order to provide more houses to the local people.
The demand for home buyers in Canada has increased significantly. Profiteers were also engaged in buying and selling property. Houses in Canada have been attracting a lot of foreign investors. Empty houses, skyrocketing prices are also the cause of the real problem.
The government has made it clear that the house is for the people, not for the investors. The government imposed a ban on the purchase of residential property through the Non-Canadian Act.
However, there are several exceptions to the Act that allow refugees and permanent residents to buy homes. Major markets such as Vancouver and Toronto have also started taxing non-residents and vacant homes. The real estate market in the country has slowed down for sellers as the Bank of Canada’s aggressive monetary policy is being followed to rein in inflation.
However, many experts related to the real estate business have also said that the ban on foreign buyers will not have any impact towards making homes more affordable, but more housing will be needed to meet the demand. Canada Mortgage and Housing Corporation said in a June report that about 19 million residential units will be needed by 2030.