Since January 2023, Canada has implemented a two-year ban on foreigners buying non-leisure residential properties, making it the most restrictive developed country for foreign buyers.
The ban was implemented to address the housing shortage and high prices due to the influx of overseas buyers and immigrants into Canada.
What is the Prohibition on the Purchase of Residential Property by the Non-Canadians Act?
To improve the housing affordability of Canadians, Canadian Prime Minister Trudeau announced the Act hoping to release more multi-home supply to ease Canada’s white-hot housing market.
The Act will prevent non-Canadians and overseas for-profit businesses from purchasing non-leisure residential properties in Canada between 2023 and 2024. Illegal homebuyers will be fined up to 10,000 Canadian dollars. Any third party facilitating the illicit purchase home transaction will be punished.
The ban applies to;
- companies not established under Canadian laws
- companies not listed on Canadian stock exchanges
- companies controlled by non-Canadians.
However, there are exemptions for;
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- permanent residents (spending most of the past five years in Canada)
- foreign workers
- international students
- diplomats
- consular officers
- members of international organizations
- foreign nationals with temporary resident status, including refugees
What Properties Can Foreigners Buy?
Foreign buyers can still purchase leisure and entertainment properties in Canada, which remain highly attractive.
What Opportunities for Canadian Citizens and Permanent Residents?
While it may be more challenging for foreign buyers to purchase real estate in Canada, this presents an excellent opportunity for Canadian citizens and permanent residents to take advantage of a less competitive market.
The new policy to make housing more affordable for Canadian citizens creates a promising opportunity to invest in the Canadian housing market.
Canada is known for being one of the most livable cities in the world, with policy advantages of unlimited purchases and loans that are attractive to foreign buyers.
Reach out to our Canada team for your next investment!