The Feds Are Banning Non-Canadians From Buying Homes In 2023 & Here's What That Means
The ban will be two years long! 🏘️
Starting January 1, 2023, a new ban is coming into effect that is going to prevent certain non-residents from buying residential property in Canada.
This act is an attempt by the feds to regulate the high prices in Canada's housing market.
When does the ban on foreign property buyers in Canada take effect?
As of January 1, 2023, non-Canadians will not be able to purchase property in Canada for two years. However, there are some exceptions to this.
Who is banned from buying a house in Canada?
According to the Canada Mortgage and Housing Corporation, this ban is on all "non-Canadians."
You are considered "non-Canadian" by this law if you are not a Canadian citizen, permanent resident or a person registered under the Indian Act.
Not only that, but this ban also applies to corporations that are privately held, not based in Canada or are run by a non-Canadian.
There are some exceptions to this rule, however.
Temporary residents who are going to school in Canada are exempt if they are attending a "designated learning institution."
Moreover, they should have filed their taxes for five years before the purchase was made, lived in Canada for 244 days for each of the previous five years, have not bought a property earlier and are buying a property that costs less than $500,000.
Also, if you're a temporary resident who's working in Canada, you can buy a home if you have a valid work permit, have worked in Canada for three of the four years before buying the property, filed your taxes, or have not previously purchased property.
Refugees and refugee claimants are also exempt if they have been given refugee protection, have made an eligible claim for refugee protection or have temporary resident status.
This rule also doesn't apply to "accredited members of foreign missions" if their passport has been given the proper accreditation by the government.
What type of property does this affect?
This is a ban on the purchase of "residential property" which is defined as "buildings of up to three dwelling units and parts of buildings, like semi-detached houses or condominium units."
Included in the ban are pieces of property with no dwelling that have been zoned for residential or mixed-use.
There is a big exception to this, however. Any residential property outside of a census metropolitan area or census agglomeration doesn't count in this ban.
What is the fine for breaking this law?
If you go against this act and, as a non-Canadian, buy a residential property, you could be subjected to a $10,000 fine. This goes for anyone who knowingly helps a non-Canadian in their purchase too.
And, to make things worse for violators, a court may even order that the purchased property be sold.
So, hopefully, with this, the rules are clearer for both Canadians and non-Canadians interested in owning property.
Of course, there's never a dull moment when buying a home in Canada, with prices in constant flux.
If you are indeed thinking of buying, house prices in Canada in 2023 are actually set to go down, although it may affect some areas more than others.
This article's cover image was used for illustrative purposes only.