<p>A ban on foreigners buying residential property in Canada took effect on Sunday, aiming to make more homes available to locals facing a housing crunch.</p>.<p>Several exceptions in the act allow individuals such as refugees and permanent residents who are not citizens to buy homes.</p>.<p>In late December, Ottawa also clarified that the ban would apply only to city dwellings and not to recreational properties such as summer cottages.</p>.<p>The temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign when soaring prices put home ownership beyond the reach of many Canadians.</p>.<p>"The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors," his Liberal Party said in its election plank at the time.</p>.<p>"This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors."</p>.<p>Following their 2021 election victory, the Liberals quietly introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act.</p>.<p>Major markets such as Vancouver and Toronto have also introduced taxes on non-residents and empty homes.</p>.<p>Despite a recent heyday, the country's real estate market has cooled for sellers as mortgage rates followed the Bank of Canada's aggressive monetary policy in a bid to rein in inflation.</p>.<p>According to the Canadian Real Estate Association, average home prices have fallen from a peak of more than Can$800,000 (US$590,000) at the start of 2022 to just over Can$630,000 (US$465,000) last month.</p>.<p>Many experts have also said the ban on foreign buyers -- who accounted for less than five percent of home ownership in Canada, according to the national statistical agency -- would not have the desired effect of making homes more affordable.</p>.<p>Rather they point to a need for more housing construction to meet demand.</p>.<p>The Canada Mortgage and Housing Corporation -- the national housing agency -- said in a June report that close to 19 million housing units will be needed by 2030.</p>.<p>That means 5.8 million new homes must be built, or 3.5 million more than are currently anticipated to be built to meet that demand, it said.</p>
<p>A ban on foreigners buying residential property in Canada took effect on Sunday, aiming to make more homes available to locals facing a housing crunch.</p>.<p>Several exceptions in the act allow individuals such as refugees and permanent residents who are not citizens to buy homes.</p>.<p>In late December, Ottawa also clarified that the ban would apply only to city dwellings and not to recreational properties such as summer cottages.</p>.<p>The temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign when soaring prices put home ownership beyond the reach of many Canadians.</p>.<p>"The desirability of Canadian homes is attracting profiteers, wealthy corporations, and foreign investors," his Liberal Party said in its election plank at the time.</p>.<p>"This is leading to a real problem of underused and vacant housing, rampant speculation, and skyrocketing prices. Homes are for people, not investors."</p>.<p>Following their 2021 election victory, the Liberals quietly introduced the Prohibition on the Purchase of Residential Property by Non-Canadians Act.</p>.<p>Major markets such as Vancouver and Toronto have also introduced taxes on non-residents and empty homes.</p>.<p>Despite a recent heyday, the country's real estate market has cooled for sellers as mortgage rates followed the Bank of Canada's aggressive monetary policy in a bid to rein in inflation.</p>.<p>According to the Canadian Real Estate Association, average home prices have fallen from a peak of more than Can$800,000 (US$590,000) at the start of 2022 to just over Can$630,000 (US$465,000) last month.</p>.<p>Many experts have also said the ban on foreign buyers -- who accounted for less than five percent of home ownership in Canada, according to the national statistical agency -- would not have the desired effect of making homes more affordable.</p>.<p>Rather they point to a need for more housing construction to meet demand.</p>.<p>The Canada Mortgage and Housing Corporation -- the national housing agency -- said in a June report that close to 19 million housing units will be needed by 2030.</p>.<p>That means 5.8 million new homes must be built, or 3.5 million more than are currently anticipated to be built to meet that demand, it said.</p>