Two-year ban on foreign homebuyers takes effect in Canada

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There is a two year ban on foreigners buying homes in Canada.

One of the most expensive housing markets in the world has been banned.

The average home price in Canada is more than double the median household income after taxes.

It is unclear what impact the ban will have on the Canadian housing market.

Statistics show that home prices in Ontario and British Columbia are the highest in the country.

The ban prohibits people who are not Canadian citizens from buying residential properties, and imposes a C$10,000 fine on those who do.

International students who have been in the country for at least five years and people with temporary work permits are among those who will be unaffected by the ban.

The ban is meant to discourage buyers from looking at homes as commodities instead of a place to live and raise a family, according to the federal housing minister.

"This legislation will ensure that housing is owned by Canadians for the benefit of everyone who lives in this country," Mr Hussen said.

Canada's housing prices are still higher than a decade ago.

Last year, the average price of a home was C$528,959, a 48% increase over the previous year.

The average household income in Canada hasn't kept up with rising home prices. The data shows that the median after tax household income increased from 2015 to 2020.

The average home price in two of Canada's largest cities - Toronto and Vancouver - has topped the C$1m mark, which puts them at the top of the list of most unaffordable cities in the world.

New Zealand banned foreigners from buying homes in the country as it grappled with its own housing affordability crisis.

Home prices have risen since the ban came into effect.

Other countries have enacted different measures to curb foreign homeownership, such as banning non-residents from purchasing homes, or imposing fees on foreign buyers.