OTTAWA, Ill. — Canada’s housing minister says the federal government plans to take a tougher stand on investment properties to help cool housing prices.
The broad strokes of the agenda were outlined in the mandate letter the prime minister gave to Housing Minister Ahmed Hussen.
Among the marching orders to Hussen was to dissuade Canadians from snapping up income properties by reviewing rules around down payments and policies to curb "excessive profits."
Hussen says tamping down on the rush for investment properties and flipping, as well as discouraging foreign investors from holding on to vacant homes, is also part of a push to rein in rising home prices.
He says the government would draw a line between mom and pop-style landlords and large real estate trusts that own hundreds of units as a passive investment vehicle and may not care whether they are occupied.
The Canadian Real Estate Association projected in a report this month that the national average home price will have risen by 21.2 per cent year-over-year to $687,500 by the end of 2021.
This report by The Canadian Press was first published Dec. 21, 2021.
The Canadian Press