Beginning January 1st, 2023, the Act will ban all foreign buyers from buying residential property in Canada in efforts to make housing more affordable for Canadians.
The Canadian government recently implemented a new prohibition on the purchase of residential properties by non-Canadians. This measure is intended to address concerns about foreign investment driving up housing prices and reducing housing affordability for Canadian citizens and permanent residents.
Under the new rules, non-Canadians will no longer be able to purchase residential properties in certain designated areas, unless they meet certain exceptions. These exceptions include:
Non-Canadians who are working in Canada on a valid work permit
International students studying in Canada
Spouses or common-law partners of Canadians
It is worth noting that the prohibition does not apply to the purchase of commercial properties or to the rental of residential properties with over 3 units.
The new prohibition has been met with mixed reactions. Some have praised it as a necessary measure to address housing affordability issues, while others have criticized it as being unfairly targeted at foreign buyers and potentially damaging to the housing market.
Also set out in the Act, a non-Canadian that contravenes the prohibition, or any person or entity that knowingly assists a non-Canadian in contravening the prohibition, is guilty of an offence and liable on summary conviction to a fine of up to $10,000.00.
In short, the Superior Court of the Province in which the contravention relates, may order the property to be sold. This is at the discretion of the applicable court.
Without delaying the Ban, the Canadian Gazette states that further details regarding the Act are yet to still be laid out. Anyone working in these fields must make reasonable efforts to “know their client” and to identify any parties that do not qualify to purchase under this ban.
Overall, the new prohibition on the purchase of residential properties by non-Canadians is a significant policy change that is intended to address concerns about foreign investment in the housing market. It remains to be seen how it will impact the housing market and the broader economy in the coming months and years.
You can read the full report HERE.