Foreigners were banned from buying real estate in Canada for another 4 years

Canada has decided to extend the ban on the purchase of residential real estate by foreigners, which came into force on January 1, 2023. Initially, the ban was supposed to be in effect only until 2025, but now it has been extended until January 1, 2027.

Details of the new restrictions

The ban applies to the purchase of housing in large cities and suburbs. An exception is made for rural areas and recreational areas.

Exceptions are made only for certain categories:

Foreigners who have received a work permit in Canada for a period of more than 6 months. They will be able to buy one apartment or house.
Foreign companies registered in Canada will also be able to invest in real estate.
Students, refugees and some other categories of foreigners will also be able to purchase housing.
In addition, it is allowed to buy empty land plots in order to build residential buildings on them.

If someone violates the ban, they will have to pay a fine of up to $ 10,000, as well as sell the apartment or house they bought.

Such measures are necessary to 1) housing in Canada was more accessible to the citizens of the country and 2) so that foreigners do not speculate in the real estate market.

Expert opinions

The government is confident that the ban will help to cope with the housing crisis. However, there is also criticism from experts. In their opinion, the ban will not solve the problem of prices and housing affordability.

There is already a decrease in demand for luxury real estate in large cities. In addition, the tax burden for foreign investors is increasing. At the same time, the share of foreigners in the housing market is small — about 1-2% of transactions.