London Daily

Focus on the big picture.
Wednesday, Feb 01, 2023

Canada bans foreign investors from buying property in the country

Canada bans foreign investors from buying property in the country

A Canadian law barring foreigners from buying property in the country took effect Sunday, as part of Prime Minister Justin Trudeau's plan to address inflating prices spurred by a recent uptick in home purchases from Asian immigrants. 

The bill, dubbed the Prohibition on the Purchase of Residential Property by Non-Canadians Act, seeks to quell the country's housing crisis by prohibiting all outsiders - particularly investors - from purchasing property throughout its 10 provinces.

Passed by Parliament in June, the guidance is a cornerstone of Trudeau’s proposal to cool speculation that has seen average home prices swell to an eye-watering $800,000 since the pandemic. 

The country’s housing market has since yet to recover, chiefly due to a now limited supply of homes left by opportunistic investors - the vast majority of whom, data shows, hail from India and China.

Scroll down for video: 

A Canadian law barring foreigners from buying property in Canada took effect Sunday, to address inflating prices spurred by an uptick in home purchases from Asian immigrants

The bill, dubbed the Prohibition on the Purchase of Residential Property by Non-Canadians Act, as part of Prime Minister Justin Trudeau's plan to address rapidly inflating housing prices

As demand continues to diminish, frenzied bidding wars for the few homes left have becoming commonplace, with an increasing amount Canadians finding themselves displaced amid the historic highs - up 38 percent from just three years ago. 

That said, the law - which has received little attention from the mainstream media - has stirred some accusations of xenophobia as immigration numbers in Canada have recently hit all-time highs in Canada.

Census data released in October revealed immigrants now make up 23 percent of the population, with most coming from Asia - causing many industry experts to posit that there is a connection.

It comes as Governor Ron DeSantis proposed a similar legislation for his state of Florida, which would prohibit buyers from China and seven other 'countries of concern' from buying agricultural land and land that surrounds military bases. 

The law - which has been criticized as xenophobic - comes as Ron DeSantis proposed a similar legislation for his state of Florida, which would prohibit buyers from China and seven other 'countries of concern' from buying agricultural land and land that surrounds military bases 

The yet to be approved bans, the politician has said, will make it more difficult for foreign-based powers - including China, Cuba, Russia, Iran, North Korea, Syria, and Venezuela - to engage in espionage or influence operations within the Sunshine State.

In a press release touting their own law - which is only a temporary two-year measure - Canadian officials reiterated how, despite recent criticisms, they still stand behind the guidance, which was quietly passed by Trudeau back in June.

Housing Minister Ahmed Hussein asserted last month that the legislation is meant 'to ensure that housing is owned by Canadians, for the benefit of everyone who lives in this country.' 

An increasing amount of Canadians are finding themselves displaced by historic home highs - which are up 38 percent from just three years ago

The campaign website for Trudeau’s party offered a similar statement regarding the guidance, while also outlining the reasons for recent volatility in the housing market.

'The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors,' the Liberal Party of Canada wrote ahead of the law's coming into effect on Sunday.

'This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors.'

Trudeau echoed those sentiment back in April at an event touting his signing of the bill earlier in the month, as part of the country's budget proposal for the year.

During his speech, the 51-year-old prime minister - who narrowly won his third bid for the position in September - stated that the law was pushed through Parliament 'to make life more affordable for Canadians and grow our economy.'

Instead of properties, the progressive - who came under fire for strict lockdown measures during the Covi-19 pandemic that saw several small businesses go out of business -  stated that the newly penned plan 'invests in people.'

'Making life more affordable for Canadians... has to start with addressing housing affordability,' Trudeau said of the $8.9million budget, which months before was delayed by Conservatives fearing it would cause the country further economic uncertainty. 

'It’s a big issue for a lot of Canadians and it’s a big issue to solve,' the liberal leader went on, speaking to citizens in front of podium adorned with the phrase, 'Make Housing Affordable.'

A construction crane sits idle in Vancouver at the site of an office tower under construction last year. The Canada Mortgage and Housing Corporation reported that 3.5 million more homes would need to be built by 2030 to achieve affordability for all Canadians

'There’s no one silver bullet that’s going to solve everything. That’s why our plan has three key pillars,' Trudeau said, before detailing what his party hopes to achieve with the new guidance.

'The first is helping people save to buy a home; the second is focusing on housing supply, to make sure we’re creating more homes across the country; and the third is putting an end to the speculation that is driving up housing prices unnecessarily,' he said.

The three-time prime minister singled out Ontario's Hamilton in particular, which, like countless cities across the country, has seen home prices surge.

The port city - located less than a two hour's drive across the border to Buffalo - has seen property costs surge 16.8 percent in two years, with the average price of homes now standing at $761,244, even after falling 8.9 percent in 2022.

Addressing the crowd, Trudeau conceded that this phenomenon was occurring 'frankly, across the country,' leaving average Canadians in the lurch while investors who bought properties before or in the early stages of the pandemic turn a profit.    

'Canada needs more affordable housing,' Trudeau said at the time. 'When Canadians work hard and save, they should be able to afford a home.

That said, the new guidance - which comes as The Bank of Canada, like the Federal Reserve, has frantically hiked interest rates to address rampant inflation - states that properties not located within metropolitan hubs will not be subject to the ban

'Homes are to live in. To raise a family and to build a life in.' he added, 'Not a way to boost a balance sheet.'

He slammed the often deep pocketed investors - who often hail from countries like the US and the UK - as part of the problem.

'For far too many families, the dream of homeownership in today’s market is simply out of reach. But that needs to change. 

'Young Canadians deserve the opportunity to build a future in a home of their own, just as their parents were able to do before them.'     

He added that 'all Canadians deserve to have an affordable home,' and that the then recently approved budget, which includes the recently passed law, gives us the tools to make a difference.'

That said, the new guidance - which comes as The Bank of Canada, like the Federal Reserve, has frantically hiked interest rates to address rampant inflation - states that properties not located within metropolitan hubs in places like Vancouver, Ontario, and Toronto will not be subject to the ban.

'This generally means that municipalities with a core population of less than 10,000 people will not be subject to the ban, whereas communities with a core population that is greater than 10,000 people will be impacted,' Western Canada's foremost law Firm MLT Aikins explained at the time. 

Prohibition on the Purchase of Residential Property by Non-Canadians Act 

The bill - which was passed on June 23 and will only last two years - prohibits non-Canadian from purchasing, directly or indirectly, any residential property in the country, with the following exceptions:

(a) a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions

(b) a protected person within the meaning of subsection 95(2) of that Act

(c) an individual who is a non-Canadian and who purchases residential property in Canada with their spouse or common-law partner if the spouse or common law-partner is a Canadian citizen, person registered as an Indian under the Indian Act, permanent resident or person referred to in paragraph (a) or (b)

The law also does not apply if a non-Canadian becomes liable or assumes liability under an agreement of purchase and sale of the residential property before the day on which this Act comes into force.

Properties not located within metropolitan hubs in places like Vancouver, Ontario, and Toronto will also not be subject to the ban.    

Over the past two years, major markets in those cities - in an effort to deter investors from snapping up properties instead of struggling Canadians - have introduced taxes on non-residents and empty homes.

Meanwhile, as homes remain largely unaffordable for the average citizen, countless construction projects in those locales sit sidelined due to diminished demand.

The Canada Mortgage and Housing Corporation reported that 3.5 million more homes would need to be built by 2030 to achieve affordability for all Canadians.

Realtors in the country, however, have expressed skepticism about the law - which provides exemptions for people who intend to move to Canada - saying its drawbacks far outweigh any prospective benefits.

'Canada has built a reputation as a multicultural nation that welcomes people from around the world,' the Canadian Real Estate Association said in statement. 

'As currently proposed, the prohibition on the purchase of residential property by non-Canadians can impact our reputation as a welcoming nation.

'The potential benefits of the ban are likely to be modest,' the group added.

Canada's national bank, meanwhile, continues to hike interest rates, resulting in higher mortgage rates that further deter potential homebuyers from purchasing property.

According to recent data provided Canadian Real Estate Association - even after some respite seen this year, the country's average price index is still up nearly 40 percent from the end of 2019, before the pandemic.

The group also reports that average home prices have fallen from a peak of more than $590,000 at the start of 2022 to just over $465,000 last month.

Other experts have echoed the association's stance that the ban on foreign buyers - who account for less than 5 percent of home ownership in Canada - would not have the desired effect of making homes more affordable.

Inventory of homes for sale, meanwhile, are now back to pre-pandemic levels.


Related Articles

London Daily
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
You're Beautiful - James Blunt (Boyce Avenue acoustic cover)
Almost 30% of professionals say they've tried ChatGPT at work
You Are So Beautiful
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
Postmodern Jukebox European Tour Version
What is ChatGPT?
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Sattahip Motor Show 20
China is opening up for foreign investors.
SONATE AU CLAIR DE LUNE - Moonlight sonata
Tesla reported record profits and record revenues for 2022
A kiss to build a dream on
Germany confirms it will provide Ukraine with Leopard 2 tanks
Wiz Khalifa - See You Again ft. Charlie Puth, Furious
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Mean Blues
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
La Chansonnette
Who’s Threatening Israeli Democracy?
Pattaya Addicts
Federal Reserve Probes Goldman’s Consumer Business
Franz Liszt - Liebestraum - Love Dream
China's first population drop in six decades
Dream a little dream of me
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tu Vuo' Fa' L'Americano - Hetty & the Jazzato Band
Israelis rally in three cities against Netanyahu legal reforms
Unchained Melody sung like you've NEVER heard!
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Dave Brubeck - Take Five
Tesla slashes prices globally by as much as 20 percent
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Japan prosecutors indict man for ex-PM Shinzo Abe murder
Rondo Alla Turca
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
Kiss of fire
After Failing To Pay Office Rent, Twitter May Sell User Names
Ed Sheeran - Perfect (Amadeus violin cover instrumental)
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
FIFA president questioned by prosecutors
Israel Cachao López - Guajira Clásica
Britain's Sunak breaks silence and admits using private healthcare
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Strauss - Radetzky March - Karajan
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
La vie en rose
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Despacito (Piano Cover) - Peter Bence
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
Orlando Cachaito Lopez Redencion
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
RADETZKY MARCH-2008-Wien, New Year Concert
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Only you (And you alone)
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Strangers In The Night
Will Canada ever become a real democracy?
Charles Aznavour - La Boheme
Hong Kong property brokerages slash payrolls in choppy market
Summer time
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Aux Champs Elysees
Coinbase to Pay $100 Million in Settlement With New York Regulator
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
FTX assets worth $3.5bn held by Bahamas securities regulator
La Mer (Beyond the Sea) – Avalon Jazz Band
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Hong Kong to scrap almost all its Covid rules
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
EU calls screening of travellers from China unjustified
Radiohead - Creep
US imposes Covid testing for visitors from China
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Clashes erupt in central Paris after shooting at a Kurdish cultural center
Perhaps, Perhaps, Perhaps - Multi-Couples
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Pentatonix Havana
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Paula Cole - Autumn Leaves
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Oscar Benton Bensonhurst Blues
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
NIGHTWISH - The Phantom Of The Opera
Motorshow 2016 Tanjay Negros Oriental
Monica Bellucci - Ti Amo
Michael Jackson - Billie Jean Milena The Voice France 2018
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river