Canada Extends Foreign Home Buyer Ban Until 2027

by Nancy Che PREC*

Canada's government has decided to keep a rule that stops people from other countries
from buying homes in most places until the end of 2026.

This rule started last January and aims to deal with worries about housing prices and
people not being able to afford homes in big cities.

Chrystia Freeland, who is Canada's deputy prime minister and finance minister, explained
that foreign money was making it hard for Canadians to buy houses, especially in cities.
The rule, called the Prohibition on the Purchase of Residential Property by Non-Canadians
Act, doesn't allow people who aren't citizens to buy homes in many cities, but there are
some exceptions.

People in rural areas or places meant for fun activities, students, refugees, permanent
residents, spouses of Canadians, and some temporary workers can still buy homes.
Some people in the real estate industry think this rule is a mistake and won't really help.
They say there's no clear evidence that it's making homes more affordable.

The Canadian Real Estate Association (CREA) and Sotheby's International Realty Canada
argue that the government should rethink this rule and make some changes, like
exempting certain types of property or giving provinces more say in the rules.

The ban has also affected luxury home sales in big cities like Toronto, where it's become
harder to find buyers from other countries.

Now, there's talk of adding a 10% tax on foreign home buyers in Toronto, and the
province of Ontario already has a 25% tax for non-residents who buy homes.

Even though there's not a lot of data on people from other countries buying homes in
Canada, it seems that the numbers have gone down in recent years.

In places like British Columbia and Ontario, where housing markets are quite active, the
government has noticed a drop in foreign buyers.

In a nutshell, Canada is saying 'no' to foreign home buyers until 2027. The focus is on
making sure homes stay affordable for Canadians and preventing unexpected swings in
the housing market.