Real Estate

CTV: Federal budget to include ban on foreign home buyers, billions for housing

  • Last Updated:
  • Jun 22nd, 2022 9:50 pm
Member
Nov 26, 2012
433 posts
471 upvotes
Toronto

CTV: Federal budget to include ban on foreign home buyers, billions for housing

https://www.ctvnews.ca/mobile/politics/ ... -1.5850968
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 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, and students will be excluded from this new measure. Foreigners who are purchasing their primary residence here in Canada will be exempt.
Honestly, I think these mechanisms will just cause prices to go up.
134 replies
Deal Expert
Feb 22, 2011
16521 posts
21871 upvotes
Toronto
Lol they nerfed it from the start on purpose.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
Shoulda had that ban years ago...although I'm not sure how much of a difference it will make.
Deal Addict
Oct 13, 2006
3024 posts
1538 upvotes
Burnaby
Wonder what will happen to those in litigation in jurisdictions with a foreign buyers tax.
Sr. Member
Dec 25, 2019
937 posts
1306 upvotes
this will not change anything , foreign buyers make less than 1% of the total sales in canada , little more in GTA and GVA , but if they really wanna buy they can always find a loophole to get into RE in Canada , not that hard. tax free account is good but ppl have already TFSA and RRSP (HBP) for that . still good more like extra TFSA room for them ... i hardly think these are going tomake any impact. everyone is watching the interest rates now ....
Deal Fanatic
Dec 11, 2003
8556 posts
1056 upvotes
Talk about useless.
a
Deal Addict
Jan 15, 2010
1629 posts
2027 upvotes
Toronto
Basically any foreign buyer with any sort of tie to the country is excluded, lmao.
Deal Expert
Feb 29, 2008
21738 posts
21353 upvotes
Tarrana & The Ri…
Easy401rider wrote: this will not change anything , foreign buyers make less than 1% of the total sales in canada , little more in GTA and GVA , but if they really wanna buy they can always find a loophole to get into RE in Canada , not that hard. tax free account is good but ppl have already TFSA and RRSP (HBP) for that . still good more like extra TFSA room for them ... i hardly think these are going tomake any impact. everyone is watching the interest rates now ....
It makes the lemmings happy.
Newbie
Nov 27, 2014
60 posts
77 upvotes
Toronto, ON
Lol.. they r doing everything than real solutions .. is it really difficult for them to find out who r buying these million dollar houses and how they are managing down payment etc .. give free pass to banks and then try doing all this nonsense
Deal Addict
User avatar
Oct 2, 2018
3167 posts
3653 upvotes
Toronto
I don't mind the government dealing with foreign buyers and speculators, and a tax-free First Home Savings Account seems reasonable. All of that will make zero impact IMHO, market forces are at play and it doesn't address the main issue of not enough land to build on and a dwindling stock of single family houses due to tearing down of existing stock to build condominiums.

Government is 50 years behind on transit, that expansion could have helped a great deal. They are playing catch-up on that front, but don't expect a savior there as it takes much too long for expansion and by then the population will be double what it is now.
“Laughter is timeless, imagination has no age.....and dreams are forever.”
Member
Aug 18, 2019
442 posts
420 upvotes
Every foreign buyers gobbling up homes whether govt knows it or not will be dead poor students on welfare but living in multimillion dollar homes. By "every" i mean "alllooottt" to those readers who need to be politically correct all the time🤷🏻‍♂️
~teslanaire2bitcoinaireButStillCheapLurking@RFDForDeals~
Sr. Member
May 2, 2020
517 posts
856 upvotes
Toronto
Nothing to see here other than some good old performance art. Will make no difference and wouldn’t be surprised if it actually drove demand higher.
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Deal Addict
Mar 30, 2017
1226 posts
980 upvotes
GVA
Easy401rider wrote: this will not change anything , foreign buyers make less than 1% of the total sales in canada , little more in GTA and GVA , but if they really wanna buy they can always find a loophole to get into RE in Canada , not that hard. tax free account is good but ppl have already TFSA and RRSP (HBP) for that . still good more like extra TFSA room for them ... i hardly think these are going tomake any impact. everyone is watching the interest rates now ....
exactly. foreigners are never the real cause anyway. They made the headline for dollar amounts only, the actual number of homes they bought are of no impact.
It is years of housing supply deficit at city level and uncontrolled number of immigrants at federal level. The governments don't coordinate population growth and accommodation needs.
Fed throwing billions building supply is way more impactful imho
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Deal Guru
User avatar
Oct 16, 2008
11337 posts
5531 upvotes
Vaughan
It’s good move, starting point, tackle it slowly. Those guys who support foreign investors must have hated it.

Got my upvote!
...
Deal Addict
Nov 22, 2017
1049 posts
804 upvotes
Foreign student excluded...it doesn't really help. I guess it's a start but a little too late.
Member
Aug 19, 2013
434 posts
380 upvotes
Etobicoke
They will just find a proxy to buy and park their money. Nothing will change unless supply situation doesn't improve. Feds and local govt have to attack this supply and demand imbalance if they want to improve housing affordability.
Sr. Member
Mar 7, 2011
605 posts
559 upvotes
Vancouver
Whenever a new measure for real estate gets announced, I get scared if it would push the market up even further.
Deal Addict
User avatar
Aug 14, 2006
1290 posts
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GTA
sky417 wrote: Whenever a new measure for real estate gets announced, I get scared if it would push the market up even further.
Or maybe people will get spooked and demand evaporates for a little while, which could actually collapse prices like in 2017.

However, this looks like it's alot of fanfare but doesn't seem to have that much teeth to it, so...not sure how effective it'll be if the objective is to push housing down.
Sr. Member
Jun 2, 2011
575 posts
1023 upvotes
Toronto
In the budget, the Liberals will also be moving to implement a new “Tax-Free First Home Savings Account” that, if it mirrors the Liberal platform promise, will allow Canadians under 40 to save up to $40,000 towards their first home.

With the aim of shortening the time it’ll take to afford a down payment, first-time home buyers would be able to withdraw this money tax-free to put towards their first home purchase, with no requirement to repay it, per the Liberal platform.

So is this like an rrsp except people won't get tax when they take the money out? If people put 40k in this account they can claim it against their income?

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