Last updated May 2, 2024 Effective January 1, 2023, the Canadian Government enacted a temporary two-year ban (2023-2024) on non-Canadian purchase of residential real estate, which was extended a further two-years (2025-2026) in the 2024 federal budget to at least the end of 2026. It's called the “Prohibition on the Purchase of Residential Property by Non-Canadians Act”, and the legislation link is here. Please visit the link to see if the Act applies to you. According to the Act, basically you need to be a permanent resident or a Canadian Citizen (or married to one) to buy Canadian residential property. Work permit may be okay, and there are other exceptions described next. The primary intention of the Act is to prevent speculative investment by foreign investors. Some of the notable exceptions: Non-residents of Canada can still buy residential property as long as it is located in an area of Canada that is not classified as a CMA or a CA. CMA is a Census Metropolitan Area, which would have a total population of at least 100,000 people, with at least 50,000 living in its core. CA means Census Agglomeration, which is an area that has a core population of at least 10,000. You'll have to research your target area on your own to see if this exemption might apply.
The Act refers to 3-unit dwellings or less, so a 4-plex or more appears exempt.
Vacant land zoned for residential and mixed use can now be purchased by non-Canadians and used for any purpose by the purchaser, including residential development. [Repealed: Vacant land is NOT exempt.]
Recreational property - such as cottages, cabins and other vacation homes - may be exempt.
Also, a Work Permit is okay if the buyer has 183 days or more of validity remaining, intends to occupy the property while working in Canada, and they have not purchased more than one residential property [presumably in Canada]. [Repealed: If the borrower worked (full-time work) in Canada for AT LEAST three out of the four years prior to the year the purchase is made, they filed income tax returns in Canada for AT LEAST three of the four years prior to the year the purchase is made, ]
With respect to the March 27, 2023 revisions to the Act, according to Ahmed Hussen, Minister of Housing and Diversity and Inclusion, the above amendments are to “allow newcomers to put down roots in Canada through home ownership and businesses to create jobs and build homes by adding to the housing supply in Canadian cities... These amendments strike the right balance in ensuring that housing is used to house those living in Canada, rather than a speculative investment by foreign investors.”
It is important to note that the fine for attempting to circumvent this legislation is $10,000 for each party that helps out in the transaction including Realtors and Mortgage Professionals. As such, you are encouraged to obtain independent legal advice.
If you feel one of the exemptions above might apply to you, please reach out with your situation and confirmation of exemption.
