The rules shall apply for two years. The purpose is to discourage housing speculation and thereby make housing more financially affordable. The proposal was originally floated by Prime Minister Justin Trudeau during the 2021 election campaign, when skyrocketing house prices were a big topic of conversation.
“Canadian housing attracts profiteers, wealthy corporations and foreign investors,” Trudeau’s Liberal Party wrote in its election materials at the time.
“Housing is for people, not investors.”
Critics point to the fact that only five percent of all Canadian houses and condominiums have foreign owners and believe that the ban will not have the intended effect. Instead, construction must increase if prices are to fall, according to the critics’ analysis.
There are several exceptions to the ban. Refugees and non-citizens with residence permits will continue to be allowed to buy homes. The ban does not cover summer cottages or holiday homes.