The federal government in Ottawa is planning to announce a two-year ban on all foreign
homebuying in Canada as part of its latest budget.
The Liberal government of Prime Minister Justin Trudeau will make it illegal for all foreign
nationals to purchase any residential properties in Canada for the next two years, including
condominiums, apartments and single-family homes, according to multiple media reports.
Permanent residents, foreign workers and students will reportedly be exempt from the ban. The
new law aims to clarify the Liberal’s election campaign promise to bar foreign nationals from
purchasing residential properties in Canada for investment purposes.
A crackdown on foreign homebuyers has gained political traction at the federal a
nd provincial levels, with the federal government introducing a national 1% tax on the value of non-resident,
non-Canadian owned properties considered vacant or underused.
Provincially, Ontario recently announced it was increasing its foreign homebuyers’ tax to 20%
from 15%. And the Nova Scotia government unveiled new taxes on non-resident homebuyers in
its budget last month.
Additionally, Ottawa will set aside $4 billion in the budget to help municipalities update their
zoning and permitting systems to allow for accelerated construction of residential units. Ottawa
is also reportedly announcing $1.5 billion in loans and funding for cooperative housing.
Housing affordability has become a political issue across Canada as prices skyrocket. The
average home price in the country hit a record of $816,720 in February, up 20.6% from a year
ago. The average home price in Toronto, Canada’s biggest housing market, is now $1.3 million.
The federal budget will be delivered today (April 7) in Parliament after markets close at 4 p.m.
