Buying House Will Be A Challenge For Foreigners

Canada ranks as one of the favourable countries to move to, the settlement in the country will prove to be a bit of a challenge for foreigners for the next two years.

On January 1st, a new regulation went into effect in Canada that prohibits the majority of foreign purchasers from purchasing investment homes for two years. This was done to aid in lowering the cost of housing for persons residing in the nation.

There are several exceptions to the Prohibition on the Purchase of Residential Property by Non-Canadians Act, though. It enables non-citizen immigrants and Canadian permanent residents to buy property. Also excluded are students and refugees.

Due to a significant spike in housing costs during the epidemic, the legislation was enacted. Sales and rents increased as borrowing rates hit historic lows, which had an impact on inventories.

Many politicians in Canada think this was caused by foreign investors who bought homes as investments. Prime Minister Justin Trudeau pledged to solve the housing situation during the 2021 election campaign as it became into a contentious electoral topic.

Many real estate professionals think that the prohibition on foreign purchasers, who, according to the national statistics agency, made up fewer than 5% of Canadian homeowners, would not have the desired result of raising property prices.

In comparison to the pandemic’s peak in 2020 and 2021, the situation is now better. According to AFP, the national housing agency, Canada Mortgage and Housing Corporation, predicted that by 2030, there will be a shortage of about 19 million housing units. In order to fulfil that demand, it was said that 5.8 million additional houses must be constructed, which is 3.5 million more than is now planned.