Canada Extends Ban on Foreigners Buying Homes Until 2027
Canada has extended the ban on home purchases by foreigners until 2027 to curb price growth and protect the real estate market for local residents
Until 2027, Canada has banned foreigners from buying homes to halt price increases, especially in Toronto and Vancouver. The ban was initially planned until 2025 but has been extended.
Finance Minister Chrystia Freeland stated that it is necessary for homes to serve as a place for locals, not as an investment opportunity.
Exceptions are made for foreigners building new homes, as well as for students and foreigners working in Canada who have been in the country for a long time and do not own real estate.
With the potential for a reduction in interest rates by the Bank of Canada, activity in the real estate market is increasing. Housing prices have risen significantly over the last five years.
To curb speculation, Toronto is considering introducing a 10% tax for non-resident buyers, in addition to the existing Ontario province tax of 25%.
This aims to make housing more affordable for local residents and prevent it from being bought by foreigners for speculation.
It was previously reported that Canada will allocate over 362 million dollars for housing programs for refugees in response to requests from local authorities and to support the integration of migrants.