Will Canada's Ban On Foreign Buyer's Make A Difference?

Posted by Nutan Brown on Tuesday, April 26th, 2022 at 7:46am.

Earlier this month it was announced that the Canadian government will ban foreign investors from buying homes in Canada for two years in an attempt to cool off the housing market. This includes all home types, from condos to detached houses.

There are some exceptions to this ban however. For instance, it will not extend to foreign nationals purchasing a primary residence in Canada, permanent workers, foreign workers, and students.

The Canadian government also announced several other measures to further cool the housing market. These include a $4 billion investment to help municipalities with the planning and delivery of housing projects, and a $1.5 billion commitment over two years for as many as 6,000 new affordable housing units.

There have been mixed opinions about whether or not this will make a notable difference.

Some experts believe that the move will clear up room for Canadians looking to purchase a home, since the highest offers often come from foreign buyers.

Others believe that foreign buyers are being used as scapegoats and do not play a significant role in the Canadian real estate market.

Either way this move should have some impact on the housing market, particularly in Toronto and Vancouver which attracts more foreign buyers than most Canadian cities.

Ultimately we will have to wait and see what impact this will have.

Stay tuned for updates, and as always feel free to contact me if you have any questions.

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