Stop googling ‘How to move to Canada’. There is a better question

The North American country has long been at the top of the list for thousands across the globe thinking of shifting abroad. However, with a new law – that prohibits most foreigners from purchasing a residential property as an investment for two years – being passed this Sunday, many thinking of buying a house there might have to put their plans on hold.

Property prices skyrocketed during Covid lockdowns. The new law came into effect to make properties more affordable for locals facing a housing crunch. The measure was proposed by the country’s Prime Minister Justin Trudeau during the 2021 election campaign when rising prices was putting home ownership out of question for many Canadians.

“Homes are for people, not investors,” his Liberal Party had mentioned at the time. The desirability of houses in Canada is attracting foreign investors and wealthy corporations. This is leading to a major issue of skyrocketing prices and vacant housing.

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Nevertheless, there are certain exceptions. The Prohibition on the Purchase of Residential Property by Non-Canadians Act does not apply to students, refugees, immigrants, and permanent residents of Canada who are not citizens. Moreover, the ban involves city dwellings only. It does not apply to recreational properties, such as summer cottages.

According to Statistics Canada – the national statistical agency – foreign buyers accounted for less than 5% of home ownership in the country. Therefore, many real estate experts believe the ban would not have the desired effect of making housing more affordable. Instead, they reiterate the need for more housing construction to match supply with demand.

Almost 19 million housing units will be required by 2030, the national housing agency – Canada Mortgage And Housing Corporation – had mentioned in its June report. That means 5.8 million new homes must be constructed to meet that demand.