Government announces two-year extension to ban on foreign ownership of Canadian housing (2024)

FAQs

Government announces two-year extension to ban on foreign ownership of Canadian housing? ›

As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027.

If you're not a Canadian citizen or permanent resident, buying a home in Canada may be off the table for the next couple of years. On January 1st, 2023, the foreign home ownership ban—formally known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act—went into effect in Canada.

The prohibition was set to expire on January 1, 2025; however, on February 4, 2024, the federal government expressed its intent to extend the existing ban on foreign ownership of Canadian housing by an additional two years, bringing it to January 1, 2027.

Prime Minister Justin Trudeau's government acted to prohibit non-Canadians from buying residential real estate in 2022, with the measure to expire on Jan. 1, 2025. That date has now been moved to Jan. 1, 2027.

On Sunday, Canada announced a two-year extension to the ban on foreign ownership of Canadian housing in an effort to address the country's ongoing housing crisis. In a statement, Minister of Finance Chrystia Freeland said the extension will help ensure houses are being used for Canadian families.

Yes, Canadian citizens can buy real estate property or a house in the USA. There are no restrictions for Canadians on purchasing property in the United States. Many Canadian individuals and businesses buy property in the United States yearly – whether for investment or vacation purposes.

That means that anyone can purchase property in Canada, whether they're a citizen, permanent resident, temporary visa holder, or just someone interested in owning Canadian real estate. Ultimately, so long as you abide by Canadian taxation and real estate laws, homeownership in Canada is technically possible for anyone.

Americans can purchase a house in Canada, but there are certain requirements and restrictions to understand. Let's take a look at how to buy a home in Canada.

Investors were responsible for 30 per cent of home purchases in the first three months of the year, according to data released by the Bank of Canada. That is up from 28 per cent in the first quarter of last year, and 22 per cent in the same period in 2020.

Housing Affordability By The Numbers

The numbers don't lie. Recent reports have shown that for a millennial to afford an average home in Vancouver and Toronto, they'd require an annual income of $200,000 and $150,000, respectively. And mortgage affordability is just one piece of the puzzle.

How much of Canadian real estate is foreign owned? ›

Foreign ownership of houses in Canada has dropped to a single percentage point from 2-3% two years ago, economists and realtors estimate in the absence of any official data beyond 2021. The numbers hovered in the same range even before the pandemic, data from Statistics Canada showed.

To help more Canadians, particularly younger generations, buy a first home, new mortgage rules came into effect on August 1, 2024, allowing 30 year insured mortgage amortizations for first-time homebuyers purchasing new builds.

The fact that foreign owners represent a tiny segment of the market suggests the new law is unlikely to exert much impact on making homes more affordable to Canadians. This gesture, however, does send a signal to Canadians that the government is willing to impose heavy-handed policies to address the housing crisis.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, will last until 2027. The new regulations prohibit the purchase of residential property by foreign investors who are not Canadian citizens or permanent residents.

Properties located outside of a Census Metropolitan Area (CMA) or a Census Agglomeration (CA) are excluded from this prohibition.