As a real estate team that values transparency, we want to provide you with important information about the foreign homebuyer’s policy that is now in place in Canada as of January 1, 2023. This ban aims to make homes more affordable for Canadian residents by limiting foreign investment. This ban applies to residential properties such as detached homes, semi-detached houses, rowhouse units, residential condominium units, and similar premises in census metropolitan areas or core areas. Vacant land zoned for residential or mixed-use and purchasing it for the purpose of development is unaffected.
Please remember that recreational properties like cottages, lake houses, and residential properties in municipalities with a core population of less than 10,000 are not subject to the ban. Additionally, non-Canadians can still purchase more significant buildings with multiple units.
This ban addresses the housing affordability crisis in Canada, where the average house cost is 67% more than the average Canadian household can afford. This ban is expected to create new opportunities for Canadians to purchase residential properties by opening up the supply.
However, refugee claimants, international students who meet specific criteria, and non-Canadians with a spouse or common-law partner who is a Canadian citizen, permanent resident, person registered under the Indian Act, or refugee are exempt from the ban.
Those who violate the ban can face penalties of up to $10,000 and may be required to sell the property they purchased. Anyone who knowingly assists a non-Canadian with their purchase may also face fines.