Canada will Ban Foreigners From Buying Houses

Parvasi Media Group

Canadian Government is going to ban foreigners from buying houses in Canada for two years to control the prices of unprecedently rising real-estate market as home prices in Canada have soared more than 50% over the past two years.

So, it be illegal for all foreign nationals to purchase any residential properties in Canada for the next two years, including condos, apartments and single-family homes.

In the beginning of this year, federal government had also introduced one-per-cent tax on the value of non-resident, non-Canadian owned properties considered vacant or underused.

This announcement will be made by Finance Minister Chrystia Freeland while presenting budget on Thursday. This ban won’t apply to students, foreign workers or foreign citizens who are permanent residents of Canada.

Federal government is also planning to help new home buyers. Finance Minister Freeland will also introduce legislation that allows Canadians under the age of 40 to save as much as C$40,000 for a home down payment under a new tax-free account.

Ontario government had recently announced to increase foreign home buyers’ tax to 20 per cent from 15 per cent and expanding its scope to the entire province. Similarly, the Nova Scotia government had also announced new taxes on non-resident homebuyers in its last month’s budget.

Federal govt will provide $4 billion to help municipalities to update their zoning and permitting systems to accelerated construction of residential construction and $1.5 billion in loans and funding for construction of affordable housing units.

It is still not clear that how much money foreign homebuyers are investing in the Canadian residential market.