Ottawa to extend foreign home buyer ban another two years
Global News
Finance Minister Chrystia Freeland said the federal government is extending its ban on foreign homebuyers for another two years as part of efforts to ease Canada's housing crisis.
The federal government is extending its existing ban on foreign ownership of Canadian housing an additional two years, Finance Minister Chrystia Freeland announced Sunday.
Freeland, who is also deputy prime minister, said in a statement that the extension is one part of the federal government’s economic plan to make housing more affordable for Canadians.
The ban is currently set to expire on Jan. 1 2025, and will be extended to Jan. 1 2027.
“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,” Freeland said.
“The government is intent on using all possible tools to make housing more affordable for Canadians across the country.”
The foreign-buyer ban, first instituted on Jan. 1 2023, prohibits buyers who are not Canadian citizens or permanent residents from purchasing property in the country.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed in 2022 as part of an effort to crack down on housing affordability concerns. Foreign money has been buying Canadian residential real estate for years, Freeland’s statement notes, fueling worries about Canadians being priced out of housing markets across the country.
This latest measure to address Canada’s housing crisis comes one month after the Liberal government announced it will be implementing a temporary two-year cap on student permits.