Earlier in February, the federal government announced they will extend the existing ban on foreign ownership of Canadian housing by 2 more years. The restriction, which intends to increase the amount of housing available to Canadians, will now last until early 2027.

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The ban, which prevents foreign companies and people who are not Canadian citizens or permanent residents (subject to some limited exemptions for those with temporary work permits, refugees, and international students) from buying residential property in Canada’s major population centres, was to expire on January 1, 2025, but has been extended to January 1, 2027.

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If a non-Canadian is found violating these laws, penalties could include fines and court-ordered sale of the property.

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The federal government alleges that foreign money has been flowing into Canada for years to buy up residential real estate, increasing housing affordability concerns in cities across the country, and particularly in major urban centres. The government said it wanted to extend the program because it knows Canada’s housing challenge will not be solved by the end of 2024. However, some economists have questioned whether the ban will have much effect on overall housing affordability.