As part of the Government of Canada’s 2022 budget, they’ve announced new restrictions relating to Canadian housing. These restrictions have been created to try to make it easier for Canadian families to buy housing by temporarily preventing foreign investors from buying property. Read our blog if you’re interested in finding out more, or if you’re worried that this might affect you.
What do foreigners who want to buy residential homes in Canada need to know?
The Canadian government will be introducing a 2-year ban on foreign investors buying homes in Canada. This legislation has been introduced into parliament but is not yet law, so the final details are still uncertain.
The law does specify that this relates to residential property only, so if you’re interested in buying commercial property, this restriction might not apply to you. Speak to a real estate lawyer who can advise you in more detail.
Will the ban last for more than 2 years?
It’s impossible to say at this stage. The law hasn’t come into effect, and no doubt the government will be interested to see what impact this has on housing affordability.
Who is a non-Canadian under the Act?
As we’ve mentioned, this law has not been enacted yet, so may change as it proceeds through Parliament.
For now, a non-Canadian is a person who is not a Canadian citizen, who is not a permanent resident or a person registered as an Indian under the Indian Act. There are additional provisions around foreign companies, too.
What if I want to buy property with my Canadian partner?
There are exceptions for people who are buying with their Canadian partner. If this applies to you, we recommend making an appointment to speak to One80 Law so that we can give you advice about how to proceed with your purchase.
Is there a way around it?
No. If you are a foreigner, you cannot buy residential property once this law comes into effect. If you do, the courts may order that the property be sold. You would not be entitled to make any profit on the sale.
I’m a foreigner who already owns property in Canada, what do I need to know?
There’s a new tax coming into effect as part of the budget, called the Underused Housing Tax. If you’re a non-resident and your property is vacant, then you’ll need to pay this additional tax.
This announcement was made by the Government of Canada in April 2022, so the details are still being worked out. As the law passes through parliament we’ll have more details about this new restriction. If you have any questions, please contact us to discuss. We’ll update this blog post as we know more.