"New law bans non-Canadians from buying residential properties for two years"
On January 1, 2023, a new law went into effect in Canada: the Prohibition on the Purchase of Residential Property by Non-Canadians Act. This law puts a temporary ban on non-Canadians (people who are not Canadian citizens or permanent residents) from buying residential properties in Canada for two years.
This law applies to all types of residential properties, including detached houses, semi-detached houses, condominium units, and other similar premises. It also applies to purchases made through corporations, trusts, or other legal entities.
But don't worry, the law does not affect Canadians or permanent residents, and it also has some exceptions for certain groups of non-Canadians, such as international students, temporary residents, foreign nationals, and refugee claimants, as long as they meet certain conditions.
Properties located outside of a Census Agglomeration or Census Metropolitan Area are also excluded from the prohibition.
The law defines the term "purchase" to include the direct or indirect acquisition of a right or interest in residential property, with some exceptions, such as acquisitions resulting from transitional or life events like death, divorce, separation, or a gift.
It also applies to non-Canadian corporations and other entities that are not formed under Canadian laws or that have direct or indirect ownership by a non-Canadian of 3% or more of the value of the entity's equity or voting rights.
If you are a non-Canadian and you're thinking about buying a property in Canada, or you're assisting someone in buying a property in Canada, it's important to be aware of the law and its regulations, and to seek legal advice to make sure you're complying with it.
The Canada Mortgage and Housing Corporation has also released additional information and FAQs to provide guidance on the interpretation of the Act and regulations.
