Foreign investors eying Canadian home purchases are likely to face a few roadblocks for the next couple years. In the face of a snap election, the state of the country's housing situation, most notably foreign investment and ownership, has become quite the hot button issue. Yesterday, the Liberal Party declared they would prohibit non-resident purchases. The Conservative Party plans on implementing a very similar strategy if elected. By the looks of it, both parties will be looking to preserve these bans for a while.
The Canadian Conservative Party was the first to pick out foreign buyers - it will restrict non-resident home purchases for two years, if elected to lead the country. There aren't many details available just yet but it is definitely the first time an unequivocal ban has been suggested.
The Liberal Party of Canada followed suit regarding foreign purchase regulations. Justin Trudeau promised a "trial" period of prohibiting foreign buying. This trial, like the Conservatives proposed ban, will last two years. The Liberals also plan on increasing the vacant home tax for non-resident buyers.
The NDP party has not promised a foreign buyers ban, but they will impose heavy taxation. Under an NDP government, non-resident home buyers would face a 20 per cent non-resident purchase tax. At this time, the provinces of Ontario and British Columbia both have similar taxes for highly populous regions, though they only collect at a 15 per cent rate.
As one of the Liberals or Conservatives are all but a shoe-in to be at the helm post-election, the proposed ban on foreign purchase is basically a certainty at this point. If the NDP manages to snag a considerable amount of seats, their intent of increasing non-resident taxes would coincide with the Liberals proposed plans.