February 2, 2023

Why has Canada banned foreigners from buying homes in the country?

  • Nadine Youssef
  • BBC News, Toronto

credit, Getty Images

Illustrative image,

Canada’s largest cities, Toronto and Vancouver, are often featured as the world’s most expensive cities to live in.

A ban on the purchase of real estate by foreigners in the country has come into force in Canada. The two-year ban aims to ease the world’s most inaccessible real estate markets.

Starting Sunday, January 1, people who are not Canadians or permanent residents will be affected by this measure. A fine of C$10,000 (about R$40,000) is expected for those who violate it.

In late December, 11 days before the ban went into effect, the Canadian government announced some exceptions to the ban, including foreign students who have been in the country for at least five years, asylum seekers and people with temporary work permits.

For critics of the ban, its impact on the Canadian real estate market remains uncertain.