Foreigners Will Be Banned From Buying Housing in Canada

Prohibition Act banning the purchase of the residential real estate by foreigners has been published on the legal information portal of Canada. It will come into force on January 1, 2023.

Details. According to the Act, from January 1, 2023, non-Canadian buyers will be prohibited from purchasing (directly or indirectly) any residential real estate in Canada.

Exceptions:

• The buyer is a temporary resident of Canada under the Immigration and Refugee Protection Act, which satisfies the conditions set out in the law.
• The buyer is a protected individual under the Immigration and Refugee Protection Act (subsection 95(2)).
• The buyer is a privat individual whose spouse or partner is a Canadian citizen, indigenous person, or a permanent resident of Canada.
• The buyer is an indigenous person or a permanent resident of Canada.

Violations:

• Every foreigner who violates the regulation, and any individual or legal entity who advises, encourages, assists, or incites a foreigner to purchase any residential property in Canada, is guilty of an offense and is liable to a fine of $10,000.
• If a foreigner is found guilty of violating the Act, the Supreme Court of the province to which the violation relates may order the sale of residential real estate following the established procedure.

Criticism. The resolution was opposed by real estate market insiders. They are concerned that Canada may develop a reputation as a country hostile to foreign investment. Moreover, as Canada appears to be heading for a correction in the housing market, a ban on foreign buyers could slow down a possible recovery in the sector. Experts urge the government to focus on ways to accelerate housing construction instead of imposing restrictions.

Learn more. The fact that Canada is going to ban foreigners from buying housing became known in April 2022. However, the exact date of the ban was not established and the details of the relevant act were unknown.

Photo by Daniel Joseph Petty

Quoting conditions of Prian.info materials