Canada's new ban on foreign homebuyers is now in effect
The regulations for the ban on foreign homebuyers in Canada come into force on January 1, 2023.
The ban means that foreign commercial enterprises and people will be prohibited from purchasing residential properties in Canada for two years.
It was passed by Parliament last June and is geared at lowering the ballooning housing affordability challenges facing Canadians.
The exceptions for the act include a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions and international students who meet certain standards.
Those found in violation of the act can receive a fine of up to $10,000 and may be ordered to sell the property.
The act defines residential property as buildings with three homes or fewer, as well as parts of buildings like a semi-detached house or a condominium unit. The law does not prohibit the purchase of larger buildings with multiple units.
“Through this legislation, we’re taking action to ensure that housing is owned by Canadians, for the benefit of everyone who lives in this country,” said Housing Minister Ahmed Hussein in a news release on December 21, 2022.
“Homes should not be commodities. Homes are meant to be lived in, a place where families can lay down roots, create memories and build a life together.”
Back in 2021, Prime Minister Justin Trudeau tasked his cabinet with creating a temporary foreign homebuyers ban.
The full list of terms on the ban can be found on the Government of Canada website.
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