What is the foreign buyers ban in Canada and why was it extended?

For those that don’t know, back in 2022 , the Canadian government announced the foreign buyer ban in whole of Canada, with some exceptions, this ban was supposed to last 2 years, and it was aimed at stopping foreign nationals from buying single family homes in Canada with exceptions for some international students, refugee claimants and temporary workers. The ban was introduced as a counter measure to the heating up real estate market in Canada and as an attempt to cool down the market, and some experts may argue the effectiveness of this ban, as the percentage of foreign nationals buying up single family homes was minimal. There are also further exemptions to the home buying rules that allow for the purchase of buildings with four or more residences, or in some less populated areas. And that means foreign investors can still invest in the Canadian residential market. NOW with that said, in Ontario there is a tax called the None resident speculation tax, which is a 25% tax applied when a foreign buyer exempt from the federal ban purchases a property, we’ll get into that in a different video. So the ban really was just a popularity stunt by the current government, and now they just extended the ban for 3 more years ending in 2027, but really! Is this going to cool the market down, it didn’t work the first time, and sure is not going to work now, because the main reason behind the rising prices in the Canadian real estate market is high demand and lack of supply.

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