Housing affordability is going to be a main feature of tomorrow’s federal budget, CTV News has learned, including moving to make it illegal for any foreigners to buy any residential properties in Canada for the next two years.
The government is set to follow through on a series of 2021 Liberal campaign commitments as part of the 2022 budget, including implementing a new “tax-free First Home Savings Account” that will allow Canadians under 40 to save up to $40,000 towards their first home. The overall housing package is expected to total approximately $10 billion over the next five years.
The foreign buyers ban will apply to condos, apartments, and single residential units. Permanent residents, foreign workers, axjmtzywnd students will be excluded from this new measure. Foreigners who are purchasing their primary residence here in Canada will be exempt.
- How to watch the 2022 federal budget announcement on CTV News
The policy change will be legislated, giving the government powers to prescribe penalties and potential judicial powers to address instances of non-compliance, according to a government source. There is no cost attached to this foreign buyers measure yet.
Among the several housing-focused promises in the party’s platform, the Liberals promised to ban foreign money from purchasing a non-recreational, residential property in Canada for the next two years, and work with the provinces and territories “to better regulate the role of foreign buyers in the Canadian housing market.”
Given the housing crunch, the lack of inventory, and the skyrocketing prices, CTV News has learned that Thursday’s budget will also include:
- $4 billion to help municipalities update their zoning and permit systems to allow for speedier construction of residential properties;
- $1 billion for the construction of affordable housing units; and
- $1.5 billion in loans and funding for co-op housing.
It remains unclear how many housing units will be created under these spending measures.
“The objective is to keep houses in Canada for Canadians” said a government official speaking to CTV News on a not-for-attribution basis.
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Construction cranes tower above condos under construction near southeast False Creek in Vancouver, on Sunday February 9, 2020. THE CANADIAN PRESS/Darryl Dyck
