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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