Homes shouldn’t sit empty when so many Canadians try to purchase a house. So, we’re going to ban overseas possession in Canada for the following two years, and tax the present vacant, foreign-owned properties.
— Justin Trudeau (@JustinTrudeau) September 7, 2021
Housing affordability in Canada has been a brewing concern for years amongst consultants, together with RBC economists who’ve repeatedly sounded the alarm on the difficulty.
The 2-year ban prohibits non-Canadian residents or everlasting residents from shopping for non-recreational residential properties, imposing a $10,000 effective on violators.
Simply days earlier than the ban got here into impact on January 1, the federal government introduced exceptions to the two-year housing ban, which included worldwide college students who’ve been in Canada for at the least 5 years, refugees, and folks with momentary work permits, along with everlasting residents.
Regardless of the beneficial response in Canada and clamour for related prohibitions elsewhere the ban has garnered, some query whether or not a housing ban on overseas patrons may have any actual impact on the nation’s housing disaster. Non-Canadian residents constituted under 6% of house owners in Ontario and British Columbia, the place dwelling costs are highest throughout the nation.
Federal housing minister Ahmed Hussen mentioned the ban sought to discourage patrons from viewing properties as industrial investments slightly than locations to reside and lift a household, BBC Information reported.