Canada Proposes Ban on Foreign Buyers to Cool off the Housing Market

Canadian Prime Minister, Justin Trudeau's government announced Thursday that it would ban foreign investors from buying homes in Canada for two years to cool the hot real estate market.

The finance minister Chrystia Freeland took some steps to curb speculation and demand in record home prices when announcing this year's federal budget.

The government has announced a two-year ban on foreigners buying homes and a tax increase for those who sell their homes within a year, but both measures include some exceptions, including for permanent residents and international students. 

The budget also includes billions of dollars for new housing and steps to help Canadians try to enter the market. This includes a new savings account and changes to the tax credit for first-time homebuyers.

The Canadian government is under pressure to cool an overheated market after prices rose by more than 20% last year, while rental rates have also been raising continuously.