According to a CNN report, the new ban has an exception for immigrants and permanent residents of Canada who are not citizens.
Canada has banned the sale of residential properties to foreigners as an investment. The ban came into force on Sunday 01 january 2023 and the decision was taken following a rise in property prices .
House prices in the country have soared since the start of the COVID-19 pandemic, while some politicians believe buyers were responsible for locking up the supply of homes as an investment.
According to a CNN report, the new ban has an exception for immigrants and permanent residents of Canada who are not citizens.
The desirability of Canadian homes is attracting profiteers, wealthy corporations and foreign investors, the campaign site for Prime Minister Justin Trudeau's party said last year.
However, the huge increase in home prices in 2020 and 2021 was reversed even before the law came into force in 2022.
House prices and interest rates in CanadaAccording to the Canadian Real Estate Association (CREA), the median home price in Canada is set to exceed C$800,000 in February 2022. Then there was a fall of about 13 per cent in the prices.
The Bank of Canada has been raising interest rates, resulting in higher mortgage rates in the country.
The CREA price index is still up 38 percent from the end of 2019 before the pandemic. However, the group said that inventories of homes for sale have returned to pre-pandemic levels.
he Bank of Canada has been raising interest rates, resulting in higher mortgage rates in the country.
CREA's price index is still up 38 per cent from the end of 2019, before the pandemic. However, the group said that the inventory of homes for sale has returned to pre-pandemic levels.
The real estate association voiced concern about the law, even with the exemptions specified.
The association also said the ban could prompt retaliation by the United States and Mexico to prohibit purchases in those countries by Canadians, especially retirees looking for winter homes away from the Canadian winter.
Input : CNN