Starting on January 1, 2023, there will be a new regulation in effect for the Canadian real estate market. According to the Prohibition on the Purchase of Residential Property by Non-Canadians Act, non-Canadians and corporations controlled by non-Canadians will be prohibited from buying residential property in Canada for a period of 2 years. The goal of this act is to make homes more affordable for people living in Canada.
It's important to note that this regulation applies to buildings with 3 or fewer homes, as well as parts of buildings such as semi-detached houses or condominium units. Non-Canadians and individuals who assist them in violating the act may face a $10,000 fine, and a court may order the sale of the property if a non-Canadian is found to be in violation. However, this act does not apply to non-Canadians looking to rent. The act applies to direct or indirect purchases and includes exceptions for acquisitions made due to divorce, separation, gift, or death, as well as the rental of a dwelling unit to a non-Canadian for at least 6 months.
The regulations for the act include an exception for any residential property located outside of a Census Metropolitan Area or Census Agglomeration as identified in Statistics Canada's Standard Geographical Classification 2021. Both Census Metropolitan Areas and Census Agglomerations are formed by one or more adjacent municipalities centered on a population center or "core," with Census Metropolitan Areas having a total population of at least 100,000, 50,000 of which must live in the core, and Census Agglomerations having a core population of at least 10,000.
It's important to note that the act and its regulations will be in effect for 2 years before being repealed. If you're a non-Canadian looking to buy or rent property in Canada, it's important to understand the regulations and exceptions in place for the foreign buyer ban of 2023.
It's important to note that this regulation applies to buildings with 3 or fewer homes, as well as parts of buildings such as semi-detached houses or condominium units. Non-Canadians and individuals who assist them in violating the act may face a $10,000 fine, and a court may order the sale of the property if a non-Canadian is found to be in violation. However, this act does not apply to non-Canadians looking to rent. The act applies to direct or indirect purchases and includes exceptions for acquisitions made due to divorce, separation, gift, or death, as well as the rental of a dwelling unit to a non-Canadian for at least 6 months.
The regulations for the act include an exception for any residential property located outside of a Census Metropolitan Area or Census Agglomeration as identified in Statistics Canada's Standard Geographical Classification 2021. Both Census Metropolitan Areas and Census Agglomerations are formed by one or more adjacent municipalities centered on a population center or "core," with Census Metropolitan Areas having a total population of at least 100,000, 50,000 of which must live in the core, and Census Agglomerations having a core population of at least 10,000.
It's important to note that the act and its regulations will be in effect for 2 years before being repealed. If you're a non-Canadian looking to buy or rent property in Canada, it's important to understand the regulations and exceptions in place for the foreign buyer ban of 2023.