Toronto: Canada’s ban on foreigners buying residential properties took effect on Sunday after the spike in home prices since the pandemic started.
Home prices in the country have surged since the beginning of the Covid-19 pandemic, while some politicians believe buyers were responsible for snapping up the supply of homes as investments.
The new ban has an exception for immigrants and permanent residents of Canada, who are not citizens.
The temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign when soaring prices put home ownership beyond the reach of many Canadians.
The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors, the campaign site of Prime Minister Justin Trudeau’s party had stated in the past year.
“This is leading to a real problem of under-used and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors,” the campaign site read.
However, the steep rise in home prices in 2020 and 2021 was already reversed in 2022, well before the law took effect.
