The purchase of homes on the Canadian market by foreign investors is now prohibited for the next two years.
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This measure put in place by Ottawa to stabilize the residential market when the latter has experienced enormous turmoil since the COVID-19 pandemic. The Non-Canadian Residential Real Estate Prohibition Act passed the Canadian Parliament last summer. It was a promise from the Liberal Party of Canada to help address the housing crisis.
The law is primarily intended to discourage investors who wanted to invest their money in Canadian real estate. Thus, a foreigner will be able to buy a house if he can prove "that the purchase constitutes a prelude to employment or immigration to Canada during the following two years", one can read on the Liberal Party's web platform. .
The Act also does not prohibit the purchase of larger apartment buildings. It also provides for a $10,000 fine for non-Canadians, as well as for anyone who assists a non-Canadian in making a prohibited purchase.
The government hopes to work with provinces and municipalities to develop regulations regarding the role of foreign buyers in the Canadian housing market.
“Housing should not be mere property. They are meant to be lived in - a place where families can put down roots, make memories and build a life together. Thanks to this law, we are ensuring that housing is owned by Canadians, in the interest of all people living in Canada”, commented on December 21 the Minister of Housing and Diversity and 'Inclusion, Ahmed Hussen.