Canada to ban foreign purchases of homes in Mississauga, Brampton, Hamilton and the rest of country

The Canadian government is expected to place a two-year ban on foreigners from buying residential properties in Mississauga, Brampton, Hamilton and everywhere else in the country.

The move will be announced tomorrow as part of government’s budget plan for affordable housing.

Under the legislation the government will be able to penalize those who try to skirt the rules which will apply house, condos and apartments.

Exceptions will be made for those foreigners who are purchasing in Canada for their primary residents. As well, permanent residents and foreign students and workers will also be allowed to purchase homes.

The federal government has been under increasing pressure to curb the purchases by those from outside the country as means to control housing prices and to allow Canadians to get more of a foothold into the market.

Another measure that is expected in the budget to boost domestic ownership is a tax-free program of up to $40,000 for those under the age of 40 to purchase their first home.

Last week the Ontario government announced it would increase the non-resident housing speculation tax to 20 per cent in a bid to make more homes available to residents.