Wednesday, May 31, 2023

Canada prohibits non-resident aliens from buying a home to control prices

The Canadian government will ban home purchases by non-resident aliens for the next two years, a measure aimed at controlling prices.

On January 1, this new law came into force and was approved by the Justin Trudeau Government in the face of rising housing prices in Canada since the beginning of the pandemic and the belief that foreign buyers have acquired many properties as an investment.

As Trudeau explained in recent months, in the Canadian real estate market there have been many speculative operations from corporations and foreign investors that have produced a problem of homelessness and rising prices. “Homes are for people, not for investors,” the Canadian Liberal president insisted.

Refugees and permanent residents of Canada who will use it as their primary residence can purchase homes.

It was one of Trudeau’s election promises

The measure, one of Trudeau’s campaign promises in his last campaign for the 2019 elections, is being put into practice despite the fact that home prices in Canada have fallen about 13% this year, according to the Canadian Real Estate Association.

All this after the sharp increase after the pandemic and the Bank of Canada has raised interest rates in recent months.

Last April, the Canadian government presented its budget project for the fiscal year 2022-2023 that focuses on reducing the deficit and lowering the cost of housing in the country.

Of the C$31.2 billion (US$24.8 billion) in new spending, one-third is expected to make homeownership more affordable for Canadians.

World Nation News Desk
World Nation News Desk
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