Ottawa/IBNS: The federal government of Canada will continue to ban foreign nationals from buying homes in the country till 2027 due to housing affordability concerns continuing to trouble cities.

Finance Minister Chrystia Freeland in a statement has announced that Canada is extending its foreign homebuyer ban, which was set to expire on Jan 1, 2025, up until 2027.

“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 has said in the statement.

First coming into effect in 2023, tha ban implies that non-Canadian people, including permanent residents, and commercial enterprises are prevented from buying homes here.

Owing to Canadians dealing with a severe affordability crisis, housing has become a major political flashpoint.

The Canada Mortgage and Housing Corp. (CMHC) said that 3.5 million additional homes on top of expected growth need to be built by 2030 to reach affordability.

Freeland said the government plans to use all tools possible and issued a statement saying the extension will ensure houses are used for Canadians and families.

(Reporting by Asha Bajaj)