Now Foreigners will Not be Able to Buy Houses in Canada, Government Imposed Ban

Arpa Times January 3, 2023

Canada News : There is bad news for foreigners living in Canada who are planning to buy a home there. In Canada, the government has banned the purchase of property by foreigners. Canada has banned the sale of residential properties to foreigners as an investment. This ban has come into force on the first day of the new year i.e. Sunday. The decision was taken following a rise in property prices. The law was pass by the Government of Canada due to the increase in house prices following the start of the pandemic.

Canada News : Why Restrictions Imposed

A ban has impose on foreigners buying residential property in Canada with the aim of providing more homes to local people facing a housing shortage. Home prices in the country of Covid-19 have increased since the start of the Covid-19 pandemic. At the same time, some politicians believe that buyers were responsible for shutting down the supply of homes as an investment.

No Restriction on This Property

The Government of Canada has also clarified that this restriction will only apply to city residences. This ban has come into effect from Sunday i.e. January 1. This restriction will not apply to properties like summer cottages.

Canada News : House Prices and Interest Rates

According to the Canadian Real Estate Association (CREA), the median home price in Canada is set to exceed C$800,000 in February 2022. Then there was a fall of about 13 per cent in the prices. The Bank of Canada has been raising interest rates, resulting in higher mortgage rates in the country. The CREA price index is still up 38 percent from the end of 2019 before the pandemic. However, the group said that inventories of homes for sale have returned to pre-pandemic levels.

Prohibition on Buying Residential Property

Let us tell you that during the 2021 election campaign, Canadian Prime Minister Justin Trudeau made this proposal regarding the property for the convenience of the local people. Rising prices in Canada have put buying a home out of reach for many. In an effort to make more homes available to locals, restrictions have put in place on foreigners buying residential property.