Liberals’ Decision To Extend Ban On Foreign Homeownership Draws Criticism, Exposes Glaring Issues

On Sunday, Deputy Prime Minister and Minister of Finance Chrystia Freeland announced that the federal government is intending to extend the two-year ban on foreign ownership of Canadian housing by another two years.

The existing ban, first announced in December 2022, is set to expire on January 1, 2025. It will be extended to January 1, 2027. The ban was implemented in an effort to help ease the housing crisis. It prohibits foreign commercial enterprises and people who are not Canadian citizens or permanent residents from buying residential property in Canada.

Except does it, really? The announcement only seems to have brought more anguish over the Liberals’ chaotic handling of the housing crisis to light. One X user highlighted the ban’s many exemptions, suggesting that it really isn’t much of a ban when it practically only prevents foreigners who aren’t already staying in the country from buying property. 

Another highlighted the hypocrisy of government officials who are heavily invested in rental properties. A 2022 review of filings from MPs revealed that nearly a third hold rental and investment properties.

In May last year, a grade 8 student started a petition to ban then Housing Minister Ahmed Hussen from investing in the housing market, alleging that his personal financial interests create a conflict of interest and undermine his ability to effectively regulate the housing market.

Saad Baig, a government relations consultant meanwhile, presented a hot take, saying foreign ownership can solve the need to boost pre-construction sales. He suggests that instead of banning them, the government should just impose “a very significant vacant unit tax to ensure these come to market as rentals.”

“Many condo projects aren’t moving forward because they can’t hit pre-sale targets required to secure construction financing. Developments have stalled,” Baig explained. “The cost of building (land, labour, materials, govt fees/charges) is way too high to accommodate any meaningful price reduction that would still be able to secure financing. “

Freeland’s announcement also attracted allegations of the Liberals distracting people from what he called “foreign ownership of Canadian politicians.”


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

No, The Ban On Canada’s Foreign Real Estate Buyers Seems Rather Practical

Despite the loosely assembled mechanics of the ban on foreign ownership of Canadian housing, it...

Tuesday, February 27, 2024, 11:15:00 AM

More Families and Younger People Are Earning Rental Income, StatsCan Data Show

A new report from Statistics Canada shows that 7.9% of families declared rental income in...

Tuesday, November 8, 2022, 03:50:00 PM

25,000 Canadians Are Demanding Homeowner Relief Amid Rising Interest Rates

Canadians are definitely feeling the pinch of rising interest rates. In a petition on Change.org,...

Monday, October 17, 2022, 05:07:00 PM

Extended Amortization Now Comes at an Even Higher Cost with Revised Insurance Premiums

Earlier this year, the Canadian government unveiled a new policy allowing 30-year amortization periods for...

Sunday, August 11, 2024, 07:44:00 AM

GTA New Home Sales Hit Record Low in July 2024

The Greater Toronto Area housing market experienced a significant downturn in July 2024, with new...

Saturday, August 31, 2024, 07:28:00 AM