Justin Trudeau’s government has announced it will ban foreign investors from buying homes in Canada for two years in a bid to cool down the property market.
Finance Minister Chrystia Freeland took a series of steps to quell speculation and demand amid record home prices as she announced the federal budget for the year.
The government announced a two-year ban on buying homes abroad, as well as higher taxes for people who sell their home within a year, though both measures include multiple exceptions, including for permanent residents and foreign students.
The budget also includes billions for new homes and measures to help Canadians trying to break into the market, including a new savings account and changes to the first-time homebuyer tax credit.
The government is under pressure to cool down an overheated market after prices rose more than 20% last year, while rental rates have also risen.
The federal Liberal government is also promising 500 million Canadian dollars (397 million US dollars) in additional military aid to Ukraine, as well as more humanitarian and financial support to kyiv in response to Russia’s invasion.
Canada responded to months of pressure from the NATO military alliance and others by pledging more than 8 billion Canadian dollars in new military spending over the next five years. Canada will remain well below NATO’s 2% of GDP spending target, even as other allies dramatically increase their own military investments following Russia’s invasion of Ukraine.
Last month, the Canadian government announced that it had selected the Lockheed Martin Corporation and the F-35 as the preferred bidder in its competition to buy a new fighter jet.