Canada: A ban on foreigners purchasing residential property in Canada went into effect on 1st January 2023 with the aim to provide additional housing options for locals experiencing a housing shortage.

The act contains a number of exclusions that let non-citizens, such as refugees and legal permanent residents, purchase the property. In late December, Canada authorities also clarified that the ban would apply only to city dwellings and not to recreational properties such as summer cottages.

When home ownership remained out of reach for many Canadians due to price hikes in the 2021 election campaign, Prime Minister Mr. Justin Trudeau offered the temporary two-year measure.

“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,” Mr. Trudeau’s Liberal Party stated in its election plank at the time.

“This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors,” the Liberal Party added.

Following their 2021 election victory, the Liberals quietly introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act, as per the report.

Taxes on non-residents and empty homes have also been implemented in major areas like Toronto and Vancouver. The real estate market in the nation has cooled for sellers despite a recent heyday as mortgage rates have followed the Bank of Canada’s aggressive monetary policy in an attempt to control inflation.

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