The federal government is extending the existing ban on foreign ownership of Canadian housing by two more years.
Foreign investment in the Canadian residential real estate market has been a growing concern for years, particularly in major urban centres, where it has increased housing affordability issues and sparked fears of Canadians being priced out of their housing markets, the federal government said in a press release.
The federal government will push back the expiration of the ban on foreign ownership of Canadian housing from January 1, 2025, to January 1, 2027.
Foreign commercial enterprises and non-Canadian citizens or permanent residents will not be banned from purchasing residential properties in Canada. This extension of the ban on foreign ownership of Canadian housing is just one aspect of the federal government’s plan to make housing more affordable for Canadians, the federal government said in a press release.
“By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families and do not become a speculative financial asset class. The government intends to use all possible tools to make housing more affordable for Canadians across the country,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance.
In 2022, the federal government passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act to ban foreign investors from buying residential property in Canada and to ensure the housing market remains available to Canadians.
