Canada Weighs Next Steps as Foreign Homebuyer Ban Nears Expiry

Canada’s ban on foreign homebuyers is nearing its expiry, with the federal government considering various options for what comes next.

Finance Minister François-Philippe Champagne said the government is looking at all aspects of the issue, including the current state of the housing market and how it has changed over the past few years.

The ban was first introduced in 2023 as part of efforts to curb housing prices and was later extended for another two years. It is currently set to remain in effect until January 1, 2027.

Reports suggest that higher interest rates following the COVID-19 pandemic have cooled Canada’s housing market, with benchmark home prices falling by nearly 20% from their peak. Despite the decline, many young Canadians continue to struggle to afford a home.

The government is also examining models used in other countries, including Australia, where foreign buyers are generally restricted to purchasing newly built homes.