Did you know...
On June 23, 2022 the Canadian government passed the Prohibition on the Purchase of Residential Property by Non-Canadians Act (also known as the Foreign Buyers Ban). Coming into force January 1, 2023 and effective until December 31, 2024. This legislation prohibits non-Canadian citizens and non-permanent residents from purchasing residential property in Canada, with some exceptions.
The main purpose of the Act is to help make housing more affordable for Canadian citizens and permanent residents. It is well-known that housing prices in many Canadian cities, particularly Vancouver and Toronto, have been skyrocketing in recent years, making it difficult for many Canadians to afford to buy a home. By restricting the purchase of residential property by non-Canadians, the government hopes to reduce competition for housing and make it easier for Canadians to buy a home.
The Act applies to all residential property in Canada, including detached houses, semi-detached houses, townhouses, and condominiums. There are some exceptions to the prohibition, however. For example, non-Canadians who have a work permit or study permit and plan to live in the property they are purchasing are allowed to buy residential property. Additionally, refugees and protected persons are also allowed to purchase residential property.
The Act has been controversial since it was first introduced. Some have criticized it for unfairly targeting foreign buyers and restricting their ability to invest in the Canadian housing market. Others have argued that the Act is necessary to address the affordability crisis in Canada and to protect the interests of Canadian citizens and permanent residents.
Regardless of where one stands on the issue, it is clear that the Prohibition on the Purchase of Residential Property by Non-Canadians Act has significant implications for the Canadian housing market. It remains to be seen how effective the Act will be in achieving its goal of making housing more affordable for Canadians.