Foreign-homebuyer ban details released

December 27, 2022



Ahmed Hussen, Minister of Housing and Diversity and Inclusion, added details to regulations under the new Prohibition on the Purchase of Residential Property by Non-Canadians Act, which comes into force January 1, 2023, and will then be automatically repealed after two years.
The Act will ban foreign investors from buying non-recreational residential property in Canada.
There was growing concern that few details had been announced about the looming ban. Both  realtors and sellers worried about meeting a year-end deadline for filing information.
According to the December 22 statement, most recreational property and many non-Canadians will be exempt.
The Act prohibits foreign commercial enterprises and people who are not Canadian citizens or permanent residents from acquiring non-recreational, residential property in Canada.
It establishes a $10,000 fine for non-Canadians who buy residential property in contravention of the prohibition. Exceptions are set out for some circumstances. Individuals with temporary work permits, refugee claimants, and international students may be exempt if they meet certain criteria.
International students, who meet other requirements, will be able to purchase a property valued at no more than $500,000.
Buildings containing more than three dwelling units, such as a fourplex or other multi-family rentals apartments, will also be exempt.
According to the government, “The prohibition is just one way that the government is working to make housing more accessible to Canadians. Through our National Housing Strategy, we're investing in initiatives to increase the supply of rental housing, build more homes, and bring down the barriers that keep them from being built.”