Apr 19, 2022 - Economy & Business

Canada bans foreign homebuyers for two years

Photo of multiple skyscrapers against a blue sky

Vancouver, British Columbia, Canada. Photo: Jennifer Gauthier/Bloomberg via Getty Images

The Canadian government will ban foreign homebuyers for two years, AP reported Monday.

Why it matters: Canada's housing market is one of the hottest in the world, with prices jumping by more than 20% last year, per the CBC.

Details: The ban is aimed at "[c]urbing unfair practices that drive up the price of housing, in order to level the playing field for young and middle-class Canadians," according to a news release from Trudeau's office.

  • Some exceptions will be made for permanent residents and foreign students.
  • The government will also impose higher taxes on people who sell their home within a year.
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