Finance Minister Chrystia Freeland revealed on Sunday that Canada’s federal government is prolonging the prohibition on foreign individuals purchasing homes.

Initially introduced in 2022, the regulation will now remain in effect until the start of 2027.

This measure prohibits foreign nationals and businesses from acquiring residential properties in Canada, though certain exemptions are granted for select international students, refugee claimants, and temporary workers.

“By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do not become a speculative financial asset class,” Freeland said in the statement Sunday.

Critics have raised doubts about the ban’s substantial impact on housing affordability in Canada, citing the relatively modest portion of the housing market owned by non-Canadians, CBC reported.

For instance, in 2020, the non-resident share of the market in certain provinces ranged from two to six percent.

In British Columbia in 2021, only approximately 1.1 percent of home sales involved a foreign buyer.

Moreover, additional exemptions to the home-buying regulations permit the acquisition of buildings with four or more residences or apply in less populated areas.

Written by B.C. Begley