Canada extends the foreign housing ownership ban for two years, addressing concerns and housing accessibility
The Canadian government, led by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced a significant move to extend the ban on foreign ownership of Canadian housing for an additional two years.
This decision aims to address the growing concerns over housing affordability and the displacement of Canadian citizens in the housing market due to foreign investments.
Initially set to expire on January 1, 2025, the ban will now extend until January 1, 2027, continuing to restrict foreign commercial enterprises and non-Canadian citizens or permanent residents from purchasing residential property in Canada.
This extension is part of a broader federal strategy to make housing more accessible and affordable for Canadians. It reflects the government's commitment to leveraging all available tools to address the housing crisis affecting many cities and towns across the nation.
Freeland emphasized the government's dedication to ensuring homes serve as living spaces for Canadian families rather than speculative investments.
In support of this commitment, the federal government has significantly increased its housing investment since 2015, with a $9bn increase in 2023-24 compared to 2013-14. The Prohibition on the Purchase of Residential Property by Non-Canadians Act, passed in 2022, laid the groundwork for this extended ban, aiming to preserve the housing market for Canadians.
The government's economic plan for housing includes various initiatives designed to expedite home construction and improve affordability. These measures range from removing the Goods and Services Tax (GST) on new rental housing to providing low-cost financing for new rental homes and affordable housing projects.
Additionally, the plan features the Housing Accelerator Fund to encourage municipalities to increase housing construction by addressing zoning barriers and other obstacles.
Other significant components of the plan include the Rapid Housing Initiative, the Federal Lands Initiative, enhanced financing for rental apartments, the Canadian Mortgage Charter, the Tax-Free First Home Savings Account, and substantial funding towards ending chronic homelessness in Canada.