Foreign Homebuyers Banned from Buying in Canada
The red hot real estate market, coupled with low housing inventory, is forcing some dramatic changes in who can buy real estate north of the border.
In a pretty surprising move by the Canadian government, officials have passed a new law that puts the brakes on non-Canadian residents from buying homes throughout Canada for at least the next two years. In addition to the ban on purchases by foreigners buying homes in Canada, there is a slew of new taxes that may be imposed on individuals who sell their existing too quickly after buying them, along with other measures that Canadian officials hope will help slow down the wild home price increases they have seen over the last few years.
Home prices in the Canadian housing sales market have seen major increases year over year and those price increases result in many everyday Canadians not being able to find affordable housing.
These new measures that the Canadian government has enacted are part of a larger strategy to help home housing become more affordable for lower and middle-income Canadians who are looking to purchase a home. New down-payment assistance programs and tax credits are also part of the mix in an effort to level the playing field. Those measures include:
- Creation of a Tax-Free First Home Savings Account
- Launching a New Housing Accelerator Fund
- Rapidly Building New Affordable Housing
- An Extended and More Flexible First-Time Home Buyer Incentive
- Supporting Rent-to-Own Projects
I have quite a few friends in Toronto and they are all feeling the impacts of the housing shortage they're having in Canada. I hope these measures help to improve things and that the ban ends soon because I'm ready to buy my house in Toronto and run thru the six with my woes.