Canada’s ban on foreign property buyers takes effect Jan 1

As of Jan. 1, 2023, all non-Canadians and corporations will be prohibited from purchasing residential properties in Canada for a minimum of two years. The Prohibition on the Purchase of Residential Property by Non-Canadians Act was passed by the Canadian government on June 23, 2022, in an effort to address the country’s widespread housing affordability issues, and accompanying regulations have now been set out.

According to the official backgrounder, all non-Canadians that contravene the prohibition, or any person or entity that knowingly assists a non-Canadian in contravening the prohibition, is liable to pay a fine of up to $10,000.

“Homes should not be commodities,” said the Hon. Ahmed Hussen, Minister of Housing and Diversity and Inclusion. “Homes are meant to be lived in, a place where families can lay down roots, create memories and build a life together. Through this legislation, we’re taking action to ensure that housing is owned by Canadians, for the benefit of everyone who lives in this country. We will continue to do whatever we can to ensure that all residents of this country have a home that is affordable and that meets their needs.”

Exemptions include:

  • Canadian citizens and permanent residents;
  • International students who meet certain requirements, including having spent the bulk of the previous five years in Canada;
  • Workers who have worked and filed tax returns in Canada for at least three out of the four years prior to purchasing a property;
  • Diplomats, consular staff and members of international organizations living in Canada;
  • and, foreign nationals with temporary resident status, including people fleeing conflict, and refugees.

Buildings containing more than three dwelling units, and recreational properties such as cottages, cabins, and other vacation homes, will also be exempt.

For the full details, including accompanying regulations, visit: Prohibition on the Purchase of Residential Property by Non-Canadians.  

The post Canada’s ban on foreign property buyers takes effect Jan 1 appeared first on REMINET.

Leave a Reply