Canada extends ban on foreigners buying housing in the country until 2027
Kyiv • UNN
The Canadian government has extended the ban on foreigners buying homes in the country for another two years until 2027 to limit the growth of real estate prices.
The Canadian government has extended the ban on foreigners buying homes in the country for another two years to limit the growth of real estate prices. This was reported by Bloomberg , UNN reported.
Details
The Canadian government banned foreigners from buying homes back in 2022, and these restrictions were supposed to expire on January 1, 2025. However, the ban will now be lifted only on January 1, 2027.
By continuing the ban on foreigners buying homes, we will make sure that homes are homes for Canadian families, not the speculative class
At the same time, it is noted that the government has left exceptions for foreigners who buy vacant land for development, as well as for students and people with work permits in Canada.
They are allowed to buy housing if they have been in the country for a long time and have not yet purchased real estate.
Addendum
The publication noted that recently activity in the housing market has been increasing due to the fact that the Bank of Canada may cut interest rates this year.
The base housing price in December 2023 was C$730,400 ($542,500), up 36% from five years ago.
This week, Toronto City Council will consider a proposal to tax home purchases by non-residents at a rate of 10% of the property value. This is in addition to the 25% "non-resident speculation tax" imposed by the province of Ontario.
The government emphasizes that the proposal for an additional tax is aimed at "maintaining housing affordability by discouraging foreigners from buying property in Toronto, particularly those who do not intend to live there.
Recall
The Government of Canada has compiled a list of foreign institutes and laboratorieslinked to organizations in Russia, China and Iran that may pose a threat to Canadian national security.
