January 5, 2023 | Real Estate News
Need To Know: Canada’s Foreign Buyers Ban
Last month, the Government of Canada released new regulations on the Foreign Buyers Ban (Prohibition on the Purchase of Residential Property by Non-Canadians Act). These regulations lay out exceptions to the act, key definitions, and enforcement details. You can read the full regulations here.
What is the Foreign Buyers Ban?
The Foreign Buyers Ban stops people and companies outside of Canada from buying residential properties in the country. It targets foreign investment demand in a housing market that Canadian residents depend on for shelter, not speculation.
Why is the Ban in Effect?
Canada faced low housing inventory in 2022. The Foreign Buyers Ban aims to fix this by making homes more affordable for Canadian residents. The Canada Mortgage and Housing Corporation reports that blocking non-resident purchases frees up supply. This creates new buying opportunities for Canadians who might otherwise get priced out.
Does the Ban Apply to Me?
The Foreign Buyers Ban does not apply to you if you fall into one of these categories:
- You’re a Canadian citizen or permanent resident of Canada
- You’re a non-Canadian renting or looking to rent in Canada
- You hold a temporary work permit or hold refugee claimant status
- You’re an international student who meets the criteria
- You have a spouse or common-law partner who is a Canadian citizen, permanent resident, person registered under the Indian Act, or refugee
Violators face fines up to $10,000. Authorities can also force a sale of the property. This penalty applies to non-Canadians and to anyone who assists them.
We hope the Foreign Buyers Ban keeps creating a healthier balance in Canada’s housing market for years to come. Have questions about how these rules affect your buying or selling plans? Our team can walk you through it.
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