CMHC amends ‘illogical’ foreign homebuyer ban to help boost housing supply growth
The federal housing minister has made amendments to regulations on foreign purchases of residential property, saying the move will give more flexibility to newcomers and businesses looking to add to Canada’s housing supply.
The government on March 27 announced the changes, which include increasing the corporation foreign control threshold and enabling those with work permits to purchase a home.
“These amendments will further support individuals and families seeking to build a life in Canada by pursuing home ownership in their communities sooner and address housing supply issues,” the government said in a press release.
The foreign homebuyer ban, which took effect on Jan. 1, blocks non-Canadians from buying residential property — either directly or indirectly — for two years. The ban carries the potential for $10,000 fines for violations.
Officially known as the Prohibition on the Purchase of Residential Property by Non-Canadians Act, the ban was meant to take some pressure off home prices amid an affordability crisis only made worse by the rising cost of living brought on by inflation and elevated interest rates.
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