Canada bans foreign home buyers for two years to cool market

Prime Minister Justin Trudeau’s government bans foreign investors from buying homes in Canada for two years in an effort to calm a booming real estate market

OTTAWA, Ontario — Prime Minister Justin Trudeau’s government announced Thursday that it will ban foreign investors from buying homes in Canada for two years in a bid to calm a booming real estate market.

Finance Minister Chrystia Freeland took a number of steps to curb speculation and demand amid record house prices by announcing the federal budget for the year.

The government has announced a two-year ban on buying a home abroad as well as higher taxes for people who sell their homes within a year, although both measures include multiple exceptions, including for permanent residents and international students.

The budget also includes billions for new housing and measures to help Canadians trying to get into the market, including a new savings account and changes to the tax credit for first-time home buyers.

The government is under pressure to cool an overheated market after prices soared more than 20% last year, while rental rates also rose.

Canada has responded to months of pressure from the NATO military alliance and others by pledging more than C$8 billion (US$7.2 billion) in new military spending over the past next five years. Canada will remain well below NATO’s spending target of 2% of GDP, even as other allies dramatically increase their own military investments in the wake of Russia’s invasion of Ukraine.

Last month, the Canadian government announced that it had selected Lockheed Martin Corp. and the F-35 as the preferred bidder in its competition to purchase a new fighter jet.

ABC News

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