January 5, 2023 | Real Estate News
Need To Know: Canada’s Foreign Buyers Ban
Last month, the Government of Canada released regulations on the Foreign Buyers Ban (Prohibition on the Purchase of Residential Property by Non-Canadians Act). The supporting regulations include exceptions to the act, definitions, and enforcement elements. You can read more about the regulations here.
What is This Ban?
This Act bans people and commercial enterprises outside of Canada from purchasing residential properties in Canada.
Why is The Ban in Effect?
Following the low inventory we experienced in 2022, the goal of this ban is to make homes more affordable in Canada for its residents. According to the Canada Mortgage and Housing Corporation, by stopping non-Canadian residents from purchasing these homes, the supply opens up new buying opportunities for Canadians.
Does This Ban Apply to Me?
This ban does not apply to you if you are:
- a Canadian citizen or permanent resident of Canada
- a non-Canadian who is renting or looking to rent in Canada
- an individual with a temporary work permit or refugee claimant
- an international student who meets the criteria
- a non-Canadian with a spouse or common-law partner who is: a Canadian citizen, permanent resident, person registered under the Indian Act or refugee.
Non-Canadians who (and anyone who assists them) violate the ban can be fined up to $10,000 and could be required to sell the property.
We’re hoping to see this ban have a positive impact and create a balance in Canada’s housing market in 2023 and the years to follow.
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