(Washington Insider Magazine) – News of the Canada home buying ban spread fast as Trudeau took steps to protect domestic Canadian territory from international purchasers.
Interestingly, the Canadian housing market is among the most competitive and unaffordable on a global scale – with the average Canadian home price exceeding 555,555 CAD in value. This is over 10 times the average Canadian household income, and the disparity is rapidly growing as inflation continues to afflict the country.
Canada Home Buying Ban Update: Why Does It Matter And What Does It Affect?
Despite the sky-high prices, global purchasers from both China and India continued to shop the market and stake claims on domestic Canadian territory. While the country of Canada is friendly to non-residents, this could pose a strain on an already scarce housing market – leading to further issues down the line for a larger populous of Canadian citizens.
When Does The Canada Home Buying Ban Start?
The ban retroactively went into effect on January 1st of 2023, stating that those who are not permanent residents or announced citizens cannot purchase residential properties. There are hefty fines and legal action to be taken for those who are found to be in violation of this ban.
While this can limit international prestige in the Canadian housing market, there are exceptions to be had – such as in the case of long-term international students, temporary work permit holders or refugees seeking support from Canada’s official international refugee program.
Housing prices have nearly doubled over the course of a decade, and the Canada home buying ban is an attempt to stagnate the market and create additional demand for Canadian citizens: A move which, over time, could result in lower overall home prices across the country.
How Does The Canada Home Buying Ban Affect Inflation?
While inflation has continued to escalate the pricing scheme of several Canadian districts and provinces, the Canada home buying ban has not yet had an effect on the national inflation rate. While this is a component of a fix rather than a comprehensive solution, many Canadians hope that relief will show in the price drops (coming soon).
