Cannot buy a house in Canada for two years
Canada, The ban on foreigners buying residential properties in Canada came into force on Sunday. The ban has been given to make housing available to local residents who are in a housing crisis. News from AFP
The law named ‘Prohibition on the Purchase of Residential Property by Non-Canadians Act’, however, has several exceptions. Refugees and permanent residents of Canada (who are not citizens) can buy homes under this exception. In late December, Canadian authorities clarified the ban and said it would only apply to home purchases.
During the 2021 election campaign
Recreational accommodations such as summer cottages are not covered by this ban.
During the 2021 election campaign, Canadian Prime Minister Justin Trudeau proposed a two-year temporary ban. Back then, home ownership was out of reach for many Canadians due to rising inflation. After winning the 2021 election, the Liberals enacted the Prohibition on the Purchase of Residential Property by the Non-Canadians Act.
Larger markets such as Vancouver and Toronto have also imposed taxes on non-resident and vacant homes.
According to data from the Canadian Real Estate Association, the median home price at the beginning of 2022 was more than 8 million Canadian dollars (Tk 6.7 million). Last month it decreased to 630 thousand Canadian dollars (Tk 4 crore 78 lacks).
National Survey of Canada
According to the National Survey of Canada, less than 5 percent of households in the country are owned by foreigners. Experts say that banning foreign buyers, which is expected to make housing available to locals, will not do much good. They suggested building more houses than that.
National housing agency The Canada Mortgage and Housing Corporation said in a report released in June that by 2030, about 19 million new homes are needed.
This means that 5.8 million new houses must be built. The Canada Mortgage and Housing Corporation also said that plans are underway to build 3.5 million housing units to meet that demand.