In an effort to address Canada's housing crisis, the government has just extended the ban on foreign ownership by another two years.

The ban, which has been in effect since January 1, 2023, prohibits foreign commercial enterprises and people from purchasing properties in Canada. It was passed by Parliament in 2022 and is geared at lowering the ballooning housing affordability challenges facing Canadians. The ban's supposed to expire on January 1, 2025, but it looks like people or businesses who plan to buy property in Canada will have to wait even longer.

On February 4, Deputy Prime Minister and Minister of Finance Chrystia Freeland announced that the federal government plans to extend the ban.

"As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027," reads the release. "Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will continue to be prohibited from purchasing residential property in Canada."

Freeland stated that the government plans to use "all possible tools to make housing more affordable for Canadians across the country."

"By extending the foreign buyer ban, we will ensure houses are used as homes for Canadian families to live in and do not become a speculative financial asset class," she stated.

Over the years, urban areas, in particular, have seen property prices go up as foreign buyers and businesses bought up residential properties, leaving Canadians priced out of an already expensive real estate market.

The 2024 national average for a home is expected to be at around $843,684, an increase of 5 per cent, according to a recent report by Royal LePage.