The Foreign Buyer Ban
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, also known as the “foreign buyer ban”, was first announced in April 2022 and took effect on January 1st, 2023. In effect, this legislation will restrict most foreigners from purchasing residential property in Canada for the next 2 years.
The following parties and properties will however be exempt from the foreign buyer ban:
- Canadian citizens and permanent residents.
- International students who meet certain requirements, including having spent the bulk of the previous five years in Canada. They would be able to purchase a property for no more than $500,000.
- Workers who have worked and filed tax returns in Canada for at least three out of the four years prior to purchasing a property.
- Diplomats, consular staff and members of international organizations living in Canada.
- Foreign nationals with temporary resident status, including people fleeing conflict, and refugees.
Do note that buildings containing more than three dwelling units, and recreational property — such as cottages, cabins and other vacation homes — will also be exempt.
Non-Canadian owned entities, such as corporations, and foreign-controlled Canadian entities, will also be banned from buying residential property under the Act.
Century 21 Creekside Realty
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