Non-residents won’t be allowed to purchase residential property in Canada for two years starting Jan 1

Non-residents won’t be allowed to purchase residential property in Canada for two years starting from January 1, 2023

Non-residents won’t be allowed to purchase residential property in Canada for two years starting from January 1, 2023. The prohibition was introduced by the Canadian government as part of its budget with the aim to increase Canadians’ access to affordable housing, it had said.

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“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,” Ahmed Hussen, the minister of housing and diversity and inclusion, then said. This implies that the purchase of real estate will be prohibited for non-Canadian entities, including companies. This will also include Canadian entities under foreign control.

After the new regulations were released, the government also released clarifications regarding the order in which it said that even though non-residents are banned from buying properties, there are certain exemptions that give access to some people.

Refugees and foreign nationals having temporary resident status, especially those escaping conflict are excluded from the restrictions.

Residents of Canada who are diplomats, consular employees, or employees of international organisations are likewise excluded.

International students who have spent the majority of the preceding five years in Canada are exempted from the ban as well.

Employees who have worked and filed tax returns in Canada for at least three of the four years prior to buying a house are also exempt from the ban.

Structures with more than three residential units and recreational real estate, including cottages, cabins, and other second houses are also exempted.