The Canadian government recently passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which aims to address concerns about foreign investment in the Canadian housing market with a foreign home buyer ban Canada. The Act, which takes effect on January 1, 2023, and lasts for two years, prohibits non-Canadians, also known as foreign home buyers, from purchasing residential property in Canada, with some exceptions.
Under the Act, a “non-Canadian” is defined as:
- An individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident
- A corporation that is incorporated other than under the laws of Canada or a province
- A corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada and are controlled by a person referred to in the first two bullet points
- A prescribed person or entity
Residential property is defined as buildings with up to three dwelling units and parts of buildings such as semi-detached houses or condominium units. The Act prohibits non-Canadians, or foreign home buyers, from directly or indirectly purchasing such property. However, within the foreign home buyer ban Canada, there are exceptions for certain groups of non-Canadians, including:
- Temporary residents and protected persons who meet prescribed conditions
- Non-Canadians who purchase residential property with their Canadian citizen or permanent resident spouse or common-law partner
- Prescribed corporations and entities
- Non-Canadians who inherit residential property, but are required to sell it within a certain time frame according to the foreign home buyer ban.
With the foreign home buyer ban Canada in mind: If you are a non-Canadian, or foreign home buyer, considering purchasing residential property in Canada, it is important to ensure that you meet the requirements of the Prohibition on the Purchase of Residential Property by Non-Canadians Act. Our team of experienced professionals can provide you with detailed advice on how to navigate the Act and ensure that you are in compliance with its requirements. Don’t hesitate to call us for more information on the foreign home buyer ban Canada.
The information contained in this blog post is provided for general informational purposes only. It is not intended to constitute legal advice, financial advice, tax advice, or real estate advice. Readers are advised to seek specific advice from a qualified professional in the relevant field. KN LAW expressly disclaims any and all liability with respect to actions taken or not taken based on the contents of this blog post. For personalized advice pertaining to your individual circumstances, please consult with our lawyer or the appropriate professional advisor. Click here for a free consultation.
Ensuring housing market remains available to Canadians. (2022, December 21). Ensuring Housing Market Remains Available to Canadians | CMHC. Retrieved January 2, 2023, from https://www.cmhc-schl.gc.ca/en/media-newsroom/notices/2022/ensuring-housing-owned-canadiansBottom of Form
Prohibition on the Purchase of Residential Property by Non-Canadians Act. (2022, November 28). Prohibition on the Purchase of Residential Property by Non-Canadians Act. Retrieved January 2, 2023, from https://laws-lois.justice.gc.ca/eng/acts/P-25.2/page-1.html
