Beginning January 1, Canada has banned foreigners from buying homes to make properties more affordable to its citizens. However, refugees and permanent residents can buy homes and the ban will not apply to recreational properties such as summer cottages.
A violation of the ban will lead to a fine of Canadian $10,000. The Canadian Government says 15 to 20 per cent of the owners of houses in the country are non-occupants who have invested to earn rent. Canadian Housing Minister Ahmed Hussein said, “The legislation ensures that housing is owned by Canadians only. The benefits will flow to everyone who lives in Canada.”
This temporary, two-year measure was proposed by Canadian PM Justin Trudeau during the 2021 election campaign to ensure locals wouldn’t be left out in the cold due to escalating home prices. Major markets such as Vancouver and Toronto have also introduced taxes on nonresidents and empty homes.