As of January 1, a two-year ban has taken effect in Canada restricting the purchase of residential properties in the country by individuals who are not Canadian citizens or permanent residents. The ban is intended to help control surging housing prices by disincentivizing foreign investors from purchasing property.
The law provides some exceptions, such as for certain immigrants, those with temporary work permits, and students who have been in the country for at least 5 years.
Less than 6% of homeowners in British Columbia and Ontario are non-Canadian residents, according to government data reported by the BBC, and opponents of the ban argue that in addition to potentially being xenophobic, it might only end up having minimal benefits on reducing housing costs.
“Canada has built a reputation as a multicultural nation that welcomes people from around the world. As currently proposed, the prohibition on the purchase of residential property by non-Canadians can impact our reputation as a welcoming nation,” said a statement from the Canadian Real Estate Association. “The potential benefits of the ban are likely to be modest.”
Currently it is assumed, this law will help to bring the housing prices down and within few years, common middle-class Canadian family will be easily able to afford a decent housing.
