Canada has implemented a ban on foreign homebuyers. Here are some things to be aware of regarding this policy.

Posted on Jan 05, 2023


Foreign Buyer Ban 

On January 1, 2023, a new foreign buyer law came into effect in Canada, aimed at increasing the availability of housing for Canadians and decreasing the role of foreign buyers in the housing market. Effective January 1, 2023, foreign businesses and individuals will be banned from purchasing residential properties in Canada for a period of two years in an effort to curb speculation that has contributed to the country's housing market reaching record highs over the past three years.

Non-Canadian citizens and non-permanent residents will be prohibited from buying residential properties in Canada for a period of two years. This rule applies to individuals as well as non-Canadian business owners, in order to prevent them from circumventing the ban. Those found in violation of this ban may be fined up to $10,000 and may be required to sell the property in question. This new legislation aims to address the longstanding issue of foreign ownership in the Canadian real estate market, which has gained increased attention in recent years, particularly in light of the role of domestic investors, who reportedly make up about 20% of purchases.

Overall, the new foreign buyer law is intended to help address the issue of affordability in the Canadian housing market and to ensure that housing is available for Canadians. While the impact of this law on the market remains to be seen, it represents a significant shift in the way that foreign buyers are able to participate in the Canadian housing market.

JJ Jamali | Real Estate Services

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