Brake on foreign buyers

Home-buyers may face some difficulties in Canada. Prime Minister Justin Trudeau, now campaigning for re-election, has just proposed a two-year ban on foreign home-buyers in order to boost affordability for domestic buyers.

Trudeau said at a campaign event: “You shouldn’t lose a bidding war on your home to speculators. It’s time for things to change. No more foreign wealth being parked in homes that people should be living in.”

This holds consequences for buyers from mainland China and Hong Kong, who have been particularly active in Vancouver’s housing market.

Trudeau’s Liberal Party is also proposing a ban on blind bidding, calling for tax-free savings accounts for first-time buyers and requesting more oversight of the real-estate industry to combat money laundering.

Trudeau isn’t alone; Erin O’Toole of the Conservative Party is also proposing a ban on foreign home-buyers for at least two years, as well as the refurbishing of 15 percent of federal buildings for housing.

Support for Liberals in the polls is currently slipping, Reuters says, as it’s down to just 33 percent in the most recent poll.

The election is set for September 20.

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