Canada Extends Foreign Homebuyers Restriction for Another 2 Years
The Canadian government has decided to extend the restriction on foreign home purchases in the country for another two years.
The Canadian Ministry of Finance announced on January 4th (local time) that the deadline for the foreign home ownership ban will be extended from January 1th, 2025, to January 1th, 2027.
The Canadian government, led by Prime Minister Justin Trudeau, implemented this measure in January 2022 to respond to the steep rise in house prices.
Those who are prohibited from purchasing a home in Canada include foreign corporations, foreign-owned Canadian corporations, and general foreign nationals. However, foreign workers with work permits, international students who meet certain requirements, and refugees can buy a home. Diplomats and employees of international organizations are also exempt.
In Canada, there has been some speculation that foreign funds, mainly from China, have been pumped into the real estate market in major Canadian cities such as Vancouver, driving up home prices.
Some economic experts have criticized this regulation as a measure considering political effects rather than economic effects, citing reasons such as the low percentage of home purchases by foreigners.
The Canadian Ministry of Finance stated, “This is part of the federal government’s economic policy to help Canadians own their homes,” and “The federal government is taking bold measures to quickly build more homes and allow citizens to own their homes again.”