Finance Minister François-Philippe Champagne says the federal government is mulling its options ahead of the expiry of Canada’s foreign homebuyers ban at the end of the year. “We’re looking at all the options that we have in front of us, considering where the market is going, what has happened over the last few years,” Champagne told reporters in Ottawa on Wednesday. “We want to make sure that we have a higher stock of housing opportunities for Canadians.”
Former Prime Minister Justin Trudeau’s government banned foreign purchases of residential real estate in Canada in 2023, with exemptions for vacant land intended for development and larger multi-unit buildings. The ban is set to expire on Jan. 1, 2027. Data suggest foreigners owned no more than 5% of properties in any major Canadian market in 2020, while developers have argued the ban cuts off a source of capital.
Benjamin Tal, deputy chief economist at Canadian Imperial Bank of Commerce, has called for the government to let the ban expire. “It doesn’t make any sense,” he said, arguing that allowing offshore buyers back could help finance new housing projects. Mike Moffatt, who leads the University of Ottawa’s Missing Middle Initiative, said the government should let the ban expire or amend it to permit foreign buyers to purchase new homes, as Australia has done. However, he noted allowing foreign buyers back will be contentious given the ban’s popularity.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing