Canada Is Banning Some Foreigners From Buying Property After Home Prices Surged

Canada in 2023 is closing its doors to foreign investors who want to purchase homes.

A new Canadian law took effect January 1 that essentially bans foreign buyers from buying residential properties as investments for two years. The law was passed because of a spike in Canadian home prices since the start of the pandemic – and some politicians’ beliefs that foreign buyers were responsible by snapping up supply of homes as investments.

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The law provides exceptions for home purchases by immigrants and permanent residents of Canada who are not citizens.

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The real estate association voiced concern about the law, even with the exemptions for people who intend to move to Canada.

“Canada has built a reputation as a multicultural nation that welcomes people from around the world. As currently proposed, the prohibition on the purchase of residential property by non-Canadians can impact our reputation as a welcoming nation,” said the group’s statement. “The potential benefits of the ban are likely to be modest.”

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