Ban on foreign buyers reportedly in federal budget

The federal budget will be unveiled tomorrow at 1 pm and is expected to include plans for long-term economic growth. However, high inflation and uncertainty over the war in the Ukraine could see the government focus on new spending priorities, states an analysis by RBC Dominion Securities.

Housing affordability will be the cornerstone of the budget, according to media reports that suggest new rules will prohibit foreign buyers of real estate for the next two years. CTV also says the budget will include:

•  $4 billion for municipalities to update zoning and permit systems to speed up housing construction
•  $1 billion affordable housing construction
•  and $1.5 billion in loans and funding for co-op housing.

The budget is also expected to include a surtax on banks and insurance companies, and billions of dollars in new spending for the military.

The RBC analysis notes that Canada's economic recovery has been stronger than expected, allowing the feds to announce new spending and lower deficit projections. The analysis also points out that private capital will be required to grow the economy over the long term and to begin addressing chronic labour shortages facing all sectors.