How Canada’s New Foreign Buyer Ban Will Address Housing Affordability in BC

Housing affordability has been a growing concern for many Canadians, particularly those living in British Columbia. With the pandemic only exacerbating the situation, the Canadian government recently took action to address this issue by implementing a two-year ban on foreign buyers. This ban, which took effect on January 1, 2023, is seen as a strategy to ensure that housing is accessible to Canadian families who want to build a life together. In this blog post, we’ll examine the specifics of this new ban and discuss how it will address the issue of housing affordability in BC.

How Will The Foreign Buyer Ban Affect Housing Affordability In Vancouver

Under the new foreign buyer ban, any non-Canadian individual or commercial enterprise will be prohibited from buying residential property in Canada for two years. This ban applies specifically to those who are not Canadian citizens, permanent residents, or persons registered under the Indian Act. The objective here is to ensure that foreign nationals are not driving up housing prices to the point where they become unaffordable to local residents.

To ensure adherence to this new legislation, any non-Canadians found in breach of the prohibition could face a fine of up to $10,000, with the possibility of their property being sold by court order. Exemptions do exist for those buying property for substantial business purposes or if they are buying property for the enjoyment of a family member who is a Canadian citizen or permanent resident.

In British Columbia, the impact of foreign buyers on the housing market has been particularly felt. In 2016, when this issue was at an all-time high, the provincial government implemented a 15% foreign buyer tax. This move didn’t solve the problem entirely, but it did have a noticeable impact on the housing market. As a result, this new ban on foreign buyers is seen as the next step in ensuring housing affordability for Canadian residents in BC.

According to Canada’s Housing Minister Ahmed Hussen, “homes should not be commodities”. The government recognizes that housing is a basic necessity and one that should be accessible to all Canadians. They believe that this ban on foreign buyers will encourage international investors to turn their attention elsewhere and allow more Canadian families to find affordable housing.

Overall, Canada’s new foreign buyer ban is a positive step towards addressing the issue of housing affordability and ensuring that local residents have access to affordable homes. This ban acknowledges that housing is a fundamental need and should not be monopolized by international buyers looking to flip a profit. While there are exemptions to this new legislation, the government remains committed to making sure the average Canadian can afford a home. As we wait for the ban to take effect in 2023, it will be interesting to see how the housing market shifts and how this new legislation impacts the lives of Canadians living in BC.

You can reach me at 604-710-8934 by text or phone and at karen.canning@mortgagegroup.com to discuss solutions built for you.