China News Service, Ottawa, February 4 (Reporter Yu Ruidong) The Canadian government will extend the current ban on foreign buyers purchasing real estate for another two years, which means it will be implemented until January 1, 2027.
Canadian Deputy Prime Minister and Finance Minister Freeland announced the above news through a press release on February 4.
The "Bill Prohibiting Non-Canadians from Purchasing Residential Properties" introduced by the Canadian government was passed by Congress in June 2022. The ban, which officially comes into effect on New Year's Day 2023, prohibits non-Canadians and companies controlled by non-Canadians from purchasing certain residential properties in Canada. The ban was originally scheduled to be implemented for two years, expiring on January 1, 2025.
The Canadian government said that the two-year extension of the ban is part of the authorities’ economic plan to promote more affordable housing for Canadians. The Canadian government believes that over the years, foreign funds have continued to pour into the Canadian residential real estate market, exacerbating the housing affordability problem across the country, especially in major urban centers. Foreign ownership has also fueled fears of being priced out of urban real estate markets across the country.
Freeland said extending the ban on foreign buyers would ensure homes are used as homes for families and do not become a speculative financial asset class.
The Canadian government also stated that it is taking active measures and combining relevant official instructions to build more houses faster so that more people can once again own their own homes.
Some provinces in Canada also levy a non-resident speculation tax commonly known as the “foreign buyers’ tax” on real estate. In Ontario, Canada's most populous province, the "foreign buyers tax" rate is 25%, the highest in the country. British Columbia has implemented a 20% "foreign buyer tax" in many densely populated areas. In addition, the mayor of Toronto recently proposed a plan to impose an additional 10% tax on international buyers purchasing homes in the city. (over)