The Government of Canada ban on foreign home investors from buying property in Canada took effect on January 1st, 2023.
What you need to know.
The two-year ban, targeting prospective foreign home buyers will no longer be able to purchase real estate that includes condos, apartments, and single residential units – as well as higher taxes for investors who let their homes sit vacant.
The main focus of the ban is to restrict foreign home investors from purchasing real estate where there is no intention of living in them. Thus causing a shortage of available inventory and driving up real estate prices for Canadians. Toronto alone has approximately 5% of homes sitting vacant, Therefore, this could be significant for buyers waiting to get into the real estate market.
These measures could provide some temporary relief in a very tight market – particularly combined with measures presented by the Ontario government to dampen the market, like making blind bidding optional.