The measure was introduced given the issues that the country faces with regards to the worst conditions worldwide in terms of affordable housing.
Prices have jumped more than 20%, pushing the average home in Canada to nearly €599,784 - more than nine times the average household income.
"I do not think it will have a huge impact," said Ben Myers, president of Bullpenn Research & Consulting in Toronto, who found that foreign buyers accounted for only 1% of markets in 2020, up from 9% in 2015 and 2016.
"It's a pretty low number and let's face it, people who really want to buy ... will find alternative ways to do it," he said.
Mr Myers emphasized that rising housing costs reflected strong population growth and a lack of supply, in part due to growth-restrictive rules.
Now Justin Trudeau's office plans to provide several billion dollars from the state budget to build affordable housing but also to help local governments enable faster construction of new real estate.
In addition, it is planning other measures that could help new home buyers. For example, it has legislation in place that will allow Canadians under the age of 40 to save up to C $ 40,000 (US $ 31,900) through a special tax exemption when they make a down payment to buy a home.
