In recent weeks, we have seen a flurry of activity by both
Provincial and Federal Governments aiming to cool down the red-hot
housing market in Canada.
On April 7, 2022, Prime Minister Justin Trudeau announced in his
federal budget that he will be imposing a two-year ban on home
purchases by foreign nationals. While precise details of the ban
are not yet known, we do know that it is not intended to apply to
students, foreign workers or foreign citizens who are permanent
residents of Canada.
This ban is likely the Prime Minister seeking to fulfill a
campaign promise of tackling the housing affordability issue that
has gripped Canada for much of the last decade. Currently, the most
prevalent model of bidding on home purchases is a blind bidding
process where market forces compel prospective buyers to offer as
much as they can, rather than trying to obtain the best deal for
themselves. This blind bidding process is exacerbated by the
pressure prospective purchasers
