On February 4th, 2024, the Canadian government announced it will be extending the ban on foreign ownership of Canadian homes for an extra two years. This means that foreign individuals and companies won’t be allowed to buy residential properties in Canada until at least January 1, 2027. This move aims to tackle the problem of foreign investors driving up housing prices, making it harder for Canadians to afford homes, especially in big cities. It’s part of a broader plan to make housing more affordable by building more homes quickly and making homeownership achievable for more Canadians.
Important highlights:
- A residential property is a buildings with 3 dwelling units or less. This includes semi-detached houses and condominium units. The Act doesn’t prohibit the purchase of larger buildings with 4 or more dwelling units.
- Non-Canadians can purchase residential properties located outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA).
- Certain exceptions apply allowing Non-Canadians to purchase a residential property in defined circumstances.
- If a non-Canadian, or anyone who knowingly assists a non-Canadian, is convicted of violating the prohibition, they will have to pay a fine of up to $10,000. Additionally, a court can order the sale of the residential property.
If you have any questions or would like more information, please don’t hesitate to reach out to me.
-Liz