The federal government is extending its existing ban on foreign ownership of housing by another two years to ease housing affordability concerns across Canada.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act was introduced in 2022 to prevent foreign investors from buying up residential real estate. The ban was set to expire on January 1, 2025, but will now end on January 1, 2027.

“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, Chrystia Freeland, deputy prime minister and minister of finance, said in a statement. “The government is intent on using all possible tools to make housing more affordable for Canadians across the country.”

Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will continue to be prohibited from purchasing residential property in Canada.