Mallika Dureja
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After the increase in home prices since the outbreak started, Canada’s ban on foreigners purchasing residential property went into force on Sunday. During the commencement of the epidemic, the Canadian government introduced this rule as property prices rose. Some politicians also thought that buyers were to blame for buying up the available inventory of properties as investments.
The popularity of Canadian homes is drawing profiteers, powerful corporations, and international investors, according to the party website of Canadian Prime Minister Trudeau from the previous year.
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As a consequence, there is a massive problem with underused and unoccupied property, wild speculation, and increasing prices. Housing is a human right, not an investment, based on the campaign website.
There is an official exception for non-citizen immigrants and permanent residents of Canada.
But before the law became effective in 2022, the sharp increase in property prices that occured in 2020 and 2021 had already been reversed. According to the Canadian Real Estate Association, average home prices in Canada reached a high of just over US$ 800,000 in February and have been progressively declining since since, falling by nearly 13% from that top.
Like the United States and other nations that have increased rates, Canadian Bank is also responsible for price increases because it is boosting interest rates and increasing mortgage rates globally.
Canadian Real Estate Association (CREA) price index is still up 38% from the end of 2019, before the pandemic, the organisation claimed that the availability of homes for sale has restored to pre-pandemic levels.
Even with the exemptions for those who intend to relocate to Canada, the real estate association expressed concern about the law. The group claimed that Canada has earned a reputation for being a diverse country.
Canada bans foreigners from buying properties in bid to ease housing crisis https://t.co/ZuQRcx64ly
— ABC News (@abcnews) January 1, 2023
The association stated in a statement that the proposed ban on non-Canadians buying residential property “could affect our status as a friendly nation.”
There is a fear that the restriction might lead to action by the US and Mexico, which would forbid Canadians from making purchases there, specifically seniors searching for winter homes outside of Canada.
