Canada Bans Nigerians, Other Foreigners From Buying Homes
Category: World News
A ban on foreigners buying residential property in Canada took effect on
Sunday, aiming to make more homes available to locals facing a housing crunch.
Several exceptions in the act allow individuals such as refugees and permanent
residents who are not citizens to buy homes.
In late December,
Ottawa also clarified that the ban would apply only to city dwellings and not
to recreational properties such as summer cottages.
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The temporary two-year measure was proposed by Prime Minister Justin
Trudeau during the 2021 election campaign when soaring prices put home
ownership beyond the reach of many Canadians.
“The desirability of
Canadian homes is attracting profiteers, wealthy corporations, and foreign
investors,” his Liberal Party said in its election plank at the time.
“This
is leading to a real problem of underused and vacant housing, rampant
speculation, and skyrocketing prices. Homes are for people, not investors.”
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Following their 2021 election victory, the Liberals quietly introduced the
Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Major markets such as Vancouver and Toronto have also introduced
taxes on non-residents and empty homes.
Despite a recent heyday,
the country’s real estate market has cooled for sellers as mortgage rates
followed the Bank of Canada’s aggressive monetary policy in a bid to rein in
inflation.
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According to the Canadian Real Estate Association, average home prices have
fallen from a peak of more than Can$800,000 (US$590,000) at the start of 2022
to just over Can$630,000 (US$465,000) last month.
Many experts
have also said the ban on foreign buyers — who accounted for less than five
percent of home ownership in Canada, according to the national statistical
agency — would not have the desired effect of making homes more affordable.
Rather they point to a need for more housing construction to meet
demand.
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