Nigerians and other foreigners have been banned from buying houses in Canada with effect from Sunday, January 1, 2023.
BizWatch Nigeria understands that the ban, which was only enforced to last for two years, aims to help ease one of the most unaffordable housing markets in the world.
The ban prohibits Nigerians, and other people who are not Canadian citizens or permanent residents from buying residential properties, and imposes a C$10,000 fine on those who breach it.
It would be recalled that in late December – 11 days before the ban came into effect – the Canadian government announced some exemptions to the regulation, including for international students who have been in the country for at least five years, refugee claimants, and people with temporary work permits.
In a statement in which these exemptions were disclosed, Federal Housing Minister, Ahmed Hussen explained that the reason for the ban was to discourage buyers from looking at homes as commodities instead of a place to live and grow a family.
“Through this legislation, we’re taking action to ensure that housing is owned by Canadians, for the benefit of everyone who lives in this country,” Hussen stated.
The challenge in Canada’s real estate industry
Between June and August last year (2022), the average home price in Canada was C$777,200 ($568,000; £473,700), which at the time was more than 11 times the median household income after taxes.
While housing prices in Canada dropped slightly in 2022, it was discovered that they remain much higher than a decade ago. Housing prices were up 48% last year compared to 2013, when the average price of a home was C$522,951.
