Tausi Insider

Canada’s temporary ban on home purchases by foreign buyers will likely force some newcomers who would have otherwise bought a home to become renters. Fred Lum/Tausi Insider Canada’s temporary ban on home purchases by foreign buyers is likely to add demand to an already overheated rental market, some housing experts say. As of the start of this year, federal rules aimed at making homes more affordable for Canadians prevent many temporary residents from buying residential property in urban areas. The new law, in effect for the next two years, will likely deflect some foreign demand for housing to the rental market, as the country continues to welcome record levels of newcomers, analysts say. “At the margins, this is adding to the pressure in the rental market, there is no question about it,” said Benjamin Tal, deputy chief economist of CIBC World Markets. Most temporary residents rent during their first few years settling in Canada, Mr. Tal said. But the rules will likely force some ne...