Federal government extends foreign buyer ban until 2027 on Canadian homes

Posted on Feb 04, 2024



The federal government has extending the prohibition on foreign nationals from purchasing homes in Canada until 2027, citing ongoing concerns about housing affordability affecting cities nationwide.

Finance Minister Chrystia Freeland made the saying that  Canada is extending its foreign homebuyer ban up until 2027.

Under the ban, which first came into effect in 2023, foreign nationals and commercial enterprises are prohibited from buying residential property in Canada, with exceptions for some international students, refugee claimants and temporary workers.

"By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do not become a speculative financial asset class," Freeland said in the statement Sunday

“Experts have questioned whether the ban is having a significant effect on housing affordability in Canada, given the small share of the overall housing market owned by non-Canadians. In 2020, for example, the share of the market owned by non-residents in some provinces measured ranged from two to six per cent” (Paas-Lang, 2024)

In 2021, in B.C., only around 1.1. per cent of home sales included a foreign buyer.

Chrystia Freeland says the government plans to use all tools possible to make homes more affordable across Canada.

The government contends that the ban isn't meant to be a panacea for a complex issue; rather, it is portrayed as one component of a comprehensive strategy to tackle Canada's housing challenges. 

It asserts that the foreign homeowner ban operates in tandem with other recently announced measures aimed at expanding the housing supply for Canadians. These measures encompass abolishing the GST on new purpose-built rentals and allocating substantial funds to municipalities for housing initiatives.

For those interested in learning more about Canada’s foreign buyer ban, or if you are considering buying or selling property - expertise is invaluable. Matt Gul, one of West Vancouver's top Realtors, is well-versed in these complexities and can offer guidance and assistance. To learn more, please contact Matt Gul at 778-888-8888 or via email at matt@mattgul.com.

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