Canada bans home purchases by non-resident foreigners to combat rising prices – Economy

Canada prohibits non-resident foreigners from buying homes to combat rising prices

The measure went into effect this Sunday and is a fulfillment of an election promise made by Prime Minister Trudeau. “Homes are for people, not for investors”, argued the Liberal Party.

Kevin Light/Reuters

Canada’s government will ban home purchases by foreigners who do not live in the country in the coming years, thus fulfilling an election promise made by Prime Minister Justin Trudeau, information office France-Presse (AFP) said.

The law establishing this prohibition went into effect this Sunday and aims to combat the soaring property prices that have hit the country since the pandemic and due to the belief that some foreigners have acquired homes in Canada only for speculative effect.

Those who do not comply with these rules may have to pay a fine of up to $10,000 and may be forced to sell the house. The diploma was approved by the Canadian Parliament in June last year.

Even so, the regime has some exceptions, such as when the property is acquired by refugees and international students.

The Liberals, of which Trudeau is a member, defended the move on its official website, stating that “homes in Canada attract speculators, wealthy entities and foreign investors. Homes are for people, not for investors”.

The effectiveness of such measures is not completely guaranteed, as some CBS experts have heard have doubts on whether it will be able to avoid the problem of rising prices.

At the same time, in April, the Trudeau Government submitted a budget proposal that would take effect in the new fiscal year (2022/2023), with an allocation for a more affordable housing purchase program.

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