Foreigners are prohibited from buying a home for two years in Canada

First modification: 01/02/2023 – 10:14

Starting Sunday and for the next two years, foreigners will not be able to buy homes in Canada, a ban meant to combat the country’s shortage of homes and flats.

Exceptions are made for refugees or permanent residents, and the law only applies to urban residences and not tourist structures such as summer homes.

This measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign. His Liberal party had complained that foreign investors were driving up prices, making it harder for Canadians to buy a home. It was approved in the spring.

However, the housing market has slowed down recently as the central bank has raised interest rates to curb inflation.

According to the Association of Realtors, the median home price was C$630,000 (US$465,000, €435,000) last month, up from C$800,000 a year ago.

Some experts doubt the measure will be effective because foreigners account for less than 5% of homeowners in Canada, according to the national statistics agency. They estimate that it would be better to speed up the construction of new homes.

(With information from AFP)