In the struggle to make homes available for Canadian locals following the soaring prices of houses in Canada, a ban has been made effective of Sunday, denying most foreigners the opportunity of buying residential property in Canada.
Although the ban having a few exceptions allows refugees and permanent residents who are not citizens to buy homes.
Ottawa also made exceptions to elucidated that the ban would apply only to city dwellings and not to recreational properties such as summer cottages.
The ban applies to the temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign and was made effective after their victory by the Liberals
“The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,” his Liberal Party said in its election plank at the time.
“This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors.”
The Act has prompted Major markets to introduce taxes on non-residents and empty homes in Vancouver and Toronto, hence the country’s real estate market has cooled for sellers as mortgage rates followed the Bank of Canada’s aggressive monetary policy in a bid to rein in inflation.
Giving to the Canadian Real Estate Association, the cost of average homes have fallen from Can$800,000 (US$590,000) at the start of 2022 to just over Can$630,000 (US$465,000) last month.
according to the national statistical agency the solution to housing situations point to a need for more housing construction to meet demand, instead of bringing cost down.
The Canada Mortgage and Housing Corporation — the national housing agency — said in a June report that close to 19 million housing units will be needed by 2030.
In June, a report from the Canada Mortgage and Housing Corporation states that the estimate of 19 million houses will be needed by 2030, anticipating a number of 5.8 million houses built on demand.
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