The Federal government has extended the ban on foreign buying of Canadian housing.
The ban which was first announced in January 2022 will now be extended further until the beginning of 2027. It was initially set to expire Jan 2025.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act forbids non-citizens from buying residential property in most urban areas, though it does include a long list of exceptions ( ie Whistler) in many rural and “recreational” regions is exempt; most students, refugees, permanent residents, spouses of Canadian citizens, and some temporary workers in Canada may still buy homes.
While the government says the ban will help ease Canada’s severe housing crunch, critics in the real estate industry counter that the prohibition is misguidedβand ineffective. There have been no statistics proving it has eased affordability in any way.
Non-Canadian property ownership makes up a small percentage of the overall housing market, therefore a ban on such ownership is not likely to improve access to housing in a material way according to experts.
Given the imbalance between available inventory and buyer demand, the best way to solve Canada’s housing crisis is to significantly increase supply
For questions on how this could effect your property value, or specific market: