Canada extends foreign buyer ban with another two years amid housing challenges

(Aanchal Nigam / Red Maple)


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In an effort to combat housing affordability issues, Finance Minister Chrystia Freeland, announced the extension of the foreign buyer ban on residential property purchases by another two years, pushing the expiration to 2027. 

Initially enacted in 2023, this policy is for foreign nationals and commercial entities, excluding Canadian citizens and permanent residents, from the housing market to prioritise Canadian families and prevent speculative investments. 

This extension is a key component of a broader strategy to enhance housing accessibility and affordability across the nation, highlighting the government's commitment to using a comprehensive approach to address the housing crisis.

“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. The government is intent on using all possible tools to make housing more affordable for Canadians across the country,” Freeland said in a statement.

In a statement, the federal government said, since 2015, Canada significantly increased its spending on housing, with federal investment up by $9 billion compared to a decade ago. 

The government has introduced measures to keep housing accessible for Canadians, including banning foreign investors from buying residential properties. 

Various initiatives aim to build more affordable homes quickly, such as tax breaks on new rental properties, financial programs to support the construction of over 100,000 new rental homes, and efforts to fast-track housing construction through funds encouraging municipalities to remove zoning barriers. 

These efforts are part of a comprehensive plan to make housing more affordable and tackle homelessness impacting the entire nation, the government said.