Harbourwalk Condos Mississauga.Canada can’t hold up? The real estate market in Canada has been overheated in recent years. Originally, as a sparsely populated country, the supply and demand of houses in Canada has been maintained at a normal level, so the house price in Canada is more reasonable compared with other developed countries. But since last year, Canadian house prices have shown a crazy upward trend.Please Visit: Harbourwalk Condos Mississauga to Get Your VVIP Registration Today!
With the rise in house prices, many young people in Canada cannot afford to buy a house at all, and the Canadian government is prepared to take a series of compulsory measures to control house prices within a reasonable range. For the Canadian government, ensuring the housing needs of its own people is a top priority.
A few days ago, the Canadian government announced that in the next two years, Canada will prohibit all foreigners from buying any residential property in Canada. In fact, in last year’s Canadian presidential campaign, representatives of the Canadian Liberal Party put forward this idea. Of course, this ban does not prohibit any foreigner from buying a house in Canada, there are still some special circumstances.
For example, permanent residents of Canada, foreign workers with work visas and students studying in Canada will not receive this ban and can buy houses in Canada according to their own needs.
The main reason why the Canadian government chose to ban foreigners from buying homes this time is that it wants to cool the overheated Canadian real estate market. House prices in Canada have been rising since last year, raising prices in Canada by at least 20 percent in a year. Many people believe that it is those overseas buyers who have joined in, resulting in a shortage of houses in the entire Canadian real estate market.
Under the influence of supply and demand, house prices in Canada have risen so much. According to the relevant data, overseas buyers in the Canadian real estate industry account for less than a percentage of all buyers. The purchasing power of these overseas buyers simply cannot overheat the entire Canadian real estate industry. So the real reason for the rapid rise in house prices in Canada is the sudden influx of investors.
Affected by the epidemic, the original physical industry has been greatly restricted, so some of them have turned their attention to the real estate industry. Interest rates on loans in Canada are relatively low, while house prices are rising much higher than bank lending rates.
Now the loan line of Canadian investors has about doubled, which is a very frightening figure. The increase in loans has also put a sharp increase in pressure on the Canadian banking industry, so the Canadian government has to limit overseas buyers to ease the increase in investment in the real estate sector.
The sharp rise in house prices has left Canadians who originally wanted to buy homes unable to afford high house prices, which is detrimental to the Canadian economy in the long run. That’s why the Canadian government has taken such a tough approach this time, and it’s obvious that they can’t sit still.
