Union city condos.House prices have risen too sharply. Foreigners are banned from buying non-self-occupied properties in Canada for the next two years, in an effort to cool the overheated real estate market. However, Canadian permanent residents, foreign workers and students are not subject to this new measure.Please Visit: Union city condos to Get Your VVIP Registration Today!
After the COVID-19 epidemic, the Bank of Canada slashed interest rates to ultra-low levels, and house prices continued to rise across Canada, up more than 50 per cent so far. Overall house prices in Ontario have tripled in the past decade, far exceeding income growth.
On April 7, local time, the Canadian government announced that foreigners would be banned from buying non-self-occupied properties in Canada for the next two years, in an attempt to cool the overheated real estate market. Canadian Deputy Prime Minister and Finance Minister Cristina Freeland announced this year’s federal budget on the same day, focusing on dealing with tight housing supply, insufficient housing stock and soaring house prices.
In his budget, Freeland mentioned a number of measures to curb real estate speculation and demand, including that foreigners are not allowed to buy houses in Canada for the next two years, and sellers who buy houses in less than a year will face high taxes and fees. According to the Canadian Television Network, the above two measures do not apply to permanent residents, foreign workers and foreign students, and foreigners’ purchase of long-term self-occupied property is not restricted by the purchase ban.
The Canadian federal government proposed a series of measures to alleviate the housing problem in its new annual budget submitted to the House of Representatives on April 7, Chinanews.com reported. The Canadian government believes that the continued influx of foreign money into the Canadian housing market over the years has heightened concerns about the cost of living in cities such as Vancouver and Toronto, as well as fears that Canadians have been squeezed out of local housing markets.
The Canadian government also plans to provide incentives for first-time home buyers through tax breaks and exemptions. The budget also proposes to establish a housing acceleration fund to provide C $4 billion to promote housing construction within five years from the current fiscal year, with a view to achieving the goal of building 100000 new housing units; it is proposed to provide C $1.5 billion over the next two years to facilitate the construction of at least 6000 units of comfortable housing. In addition, the government will also provide funds to support the development of the rental market.
Freeland said in the House of Representatives that the Canadian government will ensure that houses are used as homes for Canadians’ families, not as a speculative financial asset.
At the end of March, the government of Ontario, Canada’s most populous province, announced without warning that it would increase the non-resident speculative tax rate, commonly known as the real estate “foreign buyer tax”, from 15% to 20%. And expand the tax coverage from Toronto and surrounding areas to the province. The province has implemented a “foreign buyer tax” since 2017. In addition, British Columbia, where Vancouver is located, has implemented a 20% real estate “foreign buyer tax” in many densely populated areas.