Federal budget to include ban on foreign home buyers, billions for housing

Housing affordability is going to be a main feature of tomorrow's federal budget, CTV News has learned, including moving to make it illegal for foreigners to buy any residential properties in Canada for the next two years.

The government is set to follow through on a series of 2021 Liberal campaign commitments as part of the 2022 budget, including implementing a new “Tax-Free First Home Savings Account” that, if it mirrors the platform promise, will allow Canadians under 40 to save up to $40,000 towards their first home.

With the aim of shortening the time it’ll take to afford a down payment, first-time home buyers would be able to withdraw this money tax-free to put towards their first home purchase, with no requirement to repay it, per the Liberal platform.

The overall housing package is expected to total approximately $10 billion in new funding over the next five years.

The foreign buyers ban will apply to condos, apartments, and single residential units. Permanent residents, foreign workers, and students will be excluded from this new measure. Foreigners who are purchasing their primary residence here in Canada will be exempt.