Buying homes in the Canadian market by foreign investors is now banned for the next two years.
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This measure was taken by Ottawa to stabilize the housing market as it has experienced tremendous turbulence since the COVID-19 pandemic. The Non-Canadian Residential Real Estate Prohibition Act was passed by the Canadian Parliament last summer. It was a promise by the Liberal Party of Canada to help solve the housing crisis.
The law is primarily intended to deter investors who wanted to invest their money in Canadian real estate. A foreigner should be able to buy a house if he can prove “that the purchase represents a prelude to employment or immigration to Canada in the next two years,” according to the Liberal Party’s web platform.
The law also does not prohibit the purchase of larger apartment buildings. It also provides for a $10,000 fine for non-Canadians, as well as anyone who assists a non-Canadian in making a prohibited purchase.
The government hopes to work with provinces and local governments to develop regulations on the role of foreign buyers in Canada’s housing market.
“Housing shouldn’t just be property. They are meant to be lived in – a place where families can put down roots, make memories and build a life together. Thanks to this law, we are ensuring that homes are owned by Canadians in the interests of everyone living in Canada,” said Minister for Housing and Diversity and Inclusion Ahmed Hussen on December 21.