Chrystia Freeland, the federal finance minister, announced on Sunday the extension of the ban preventing foreign nationals and companies from purchasing residential properties in Canada for an additional two years, extending it until 2027. The measure, initially implemented last year and originally set to expire in early 2025, applies to non-Canadian citizens or permanent residents and foreign commercial enterprises.
Exceptions to the ban exist for individuals with temporary work permits, refugee claimants, and international students meeting specific criteria. Violators of the ban, identified as non-Canadians, may face fines up to $10,000 and be mandated to divest the acquired property.
Freeland emphasized the objective of ensuring residences are utilized by Canadian families rather than becoming speculative financial assets. The federal government, acknowledging the prolonged nature of Canada’s housing challenges, expressed the intention to assess market dynamics during the extended period.
Data from Statistics Canada in 2020 revealed that seven percent of British Columbia’s condominium supply was owned by non-residents for investment purposes, with Ontario standing at 5.6 percent. Concentration of these investment properties was notably observed in the downtown cores of Vancouver and Toronto.
While some experts, like Tom Davidoff, an associate professor at UBC’s Sauder School of Business, questioned the ban’s significant impact on overall housing affordability, the government contends that it is one component within a comprehensive strategy. The ban is positioned alongside other recently introduced measures, such as the removal of the Goods and Services Tax on new purpose-built rentals and substantial financial allocations to municipalities for housing initiatives. The government asserts the ban operates synergistically with these measures to address Canada’s housing challenges comprehensively.
