Canada extends ban on foreign home purchases until 2027

Montreal. The Canadian government announced on Sunday that a ban on foreigners buying homes in Canada, in place since January 2023, will be extended until 2027 with the aim of addressing the shortage of homes and apartments in the North American country.

Canadian Deputy Prime Minister Chrystia Freeland justified, saying: “By extending the ban on purchases by foreigners, we will ensure that homes are used as homes for Canadian families and do not turn into speculative financial assets.”

Exceptions to this law, which apply only to urban housing and not to tourist housing, still apply to refugees or permanent residents, as well as certain groups of international students and temporary workers.

Justin Trudeau's Liberal government has blamed foreign investors for driving up prices for years, especially with purchases in large urban centres.

However, many experts say this ban on foreign buyers — who represent between 2% and 7% of all homeowners in Canada in 2021, according to official data — will not have the desired effect of making homes more affordable for families. .

Instead, they point to the need to build more housing to meet demand.

In mid-January, Canada also announced a cap on permits for foreign students, whose numbers have risen dramatically in recent years, exacerbating the housing crisis, according to the government.