Canada Immigration

Government Of Canada Extends Foreign Residential Buyer Ban Until 2027

The Government of Canada extends foreign residential buyer ban  the Prohibition on the Purchase of Residential Property by Non-Canadians Act until January 1, 2027.

The policy, originally introduced to increase the number of housing units available for Canadians to purchase, will now be in place for another two years. The Residence buyer ban was originally scheduled to expire at the beginning of 2025.

Under this expanded policy, non-Canadians (those who do not have Canadian citizenship or permanent residence in Canada) are prohibited from purchasing residential property. These are buildings with three or fewer residential units, which also include semi-detached houses and condominiums. Non-Canadians can continue to purchase residential property outside of Census metropolitan areas and Census agglomerations.

Are there any Conditions where non-Canadians can buy residential property ?

Under the law, there are some cases where non-Canadians are allowed to purchase residential property in large population centers. These are:

  • If a non-Canadian acquires an interest in a residential property due to a divorce, separation, gift or death;
  • If a non-Canadian rents a dwelling unit for the purpose of occupying the dwelling unit – in other words, a non-Canadian renting and occupying the dwelling unit does not constitute a purchase.
  • When a creditor exercises a security interest or secured right, such as the seizure and foreclosure of a residential property; or
  • When a non-Canadian purchases residential property for development.

In April 2023, the Government of Canada amended the original rules, allowing non-Canadians with a valid work permit to purchase mixed-use and commercial land if they meet the following requirements:

  • Your work permit is valid for at least 183 days or you have a work permit at the time of acquisition; And
  • You have not purchased more than one residential property in Canada.

In addition, the change removed other requirements for non-Canadians (including previous work experience and tax requirements) and now non-Canadians can purchase undeveloped land zoned for residential and mixed-use purposes that can be used by the buyer for any purpose, including residential development.

If non-Canadians wish to prove that they are purchasing or renting property in accordance with the law, they may provide the following documentation:

  • Work or study permit issued by Immigration, Refugees and Citizenship Canada (IRCC);
  • Certificate of Status issued by IRCC; and or other documents that establish that they are resident in Canada and that may show how long they have been in Canada to satisfy an exemption from the ban (e.g. rental agreements, utility bills or travel records inside and outside the country).

What if non-Canadians are captured improperly buying Canadian residential property?

If non-Canadians are found to be violating this law, it will be treated as a criminal offense and penalties may be imposed on them. Non-Canadians who violate the law (and any parties who assisted them in doing so) can be fined up to C$10,000.

Additionally, if a non-Canadian is found to be violating the law, a court may order the sale of the residential property, resulting in the non-Canadian receiving “no more than the price paid for the purchase of the residential property.” If a company or entity is found to have committed a violation, officers, directors, officers and other representatives of the corporation or entity may be held liable for that offense.

The expansion of the law banning home purchases by non-Canadians is one of several measures the Government of Canada has taken to create more affordable housing for Canadians – including the Apartment Construction Loan Program, the Housing Accelerator Fund and more.

Residential Prices in Canada

Based on data from the Canadian Real Estate Agency (CREA), the average price of homes sold in Canada in December 2023 was C$657,145, an increase of 5.1% over the price of homes sold in December 2022.

The agency also reports a 5.8% increase in the number of listings over the same period, with 25,671 new homes for sale at the end of last year.

About author

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Daniyal is an accomplished travel blogger boasting two years of extensive experience. Proficient in captivating narratives, Daniyal unveils the allure of undiscovered destinations and divulges insights into everything regarding traveling. Beyond the prose, he serves as the editorial architect, seamlessly incorporating editing finesse, SEO mastery, and strategic content deployment to ensure a sophisticated and enriching online travel experience.
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