Why is Canada banning foreign homebuyers? | Housing News

Montreal, Canada – Canada has barred most non-citizens and foreign-owned companies from buying homes across the country, but experts question whether the ban alone will be able to fulfil Ottawa’s goal of bringing down Canadian housing prices.

The new housing law, which went into effect on January 1, prohibits “the purchase of residential property by non-Canadians” for a two-year period.

The measure includes exemptions for permanent residents and refugees, among others. But home-buyers who violate the law can face thousands of dollars in fines, as part of the government’s efforts to “curb unproductive foreign ownership”.

“Through this legislation, we’re taking action to ensure that housing is owned by Canadians, for the benefit of everyone who lives in this country,” Ahmed Hussen, Canada’s minister of housing and diversity and inclusion, said in a statement last month.

Canadian legislators passed the prohibition in June of last year, in response to soaring housing

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Canada and the U.S. both face labor shortages. One country is increasing immigration.

In as little as a decade, there will be one retiree for every two workers in Canada. To address the looming labor shortage, Canada’s government announced a new goal in November to accept 1.45 million immigrants by 2025, with 60 percent trained in health care and other urgently needed job skills. 

Meanwhile, in the U.S., similar immigration legislation has stalled as Republicans block Democratic efforts to spur an influx of skilled workers until more is done to secure the U.S.-Mexico border. 

While the U.S. has almost 10 times as many people as Canada, the U.S. brought in the same number — about 275,000 — of legal, employment-based immigrants in fiscal year 2022 as Canada now plans to bring in each year over the next three years, according to data from U.S. Citizenship and Immigration Services and drafters of Canada’s new policy. 

In the last session of the U.S. Congress, which

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Canada bans most foreigners from buying homes for 2 years

(Getty; Illustration by The Real Deal)

It’s not exactly as overt as a border wall, but a new law in Canada is designed to make it much more difficult for foreigners to purchase property there.

The law, which went into effect tomorrow, places a two-year ban on the purchase of residential property by non-Canadians, the New York Times reported. Regulations recently released by the government say the prohibition applies only to certain cities and not to vacation homes in recreation areas. There are exemptions for buyers with Canadian spouses or partners as well as foreign buyers of multifamily buildings with more than three units, the Times reported.

Offenders could be fined $10,000 Canadian and/or forced to sell the property, but not at a profit.

Canada, like many countries including the U.S., is experiencing a housing shortage due to low interest rates and a surge in demand during the pandemic. Other

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