The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (Foreign Buyers Ban) is now in force, as of January 1, 2023. The ban will be in effect for a period of two years. Under the ban, non-citizens, non-permanent residents, and foreign commercial enterprises are blocked from purchasing Canadian homes — with some exceptions for people who demonstrably working toward permanent residency, who have resided in Canada for extended periods of time and intend to settle permanently. Those who violate the ban will face up to $10,000 fine and may have to sell the offending property.
Exceptions
However, a purchase referred to in subsection (1) does not include
(a) the acquisition by an individual of an interest or a real right resulting from death, divorce, separation or a gift;
(b) the rental of a dwelling unit to a tenant for the purpose of its occupation by the tenant;
(c) the transfer under the terms of a trust that was created prior to the coming into force of the Act; or
(d) the transfer resulting from the exercise of a security interest or secured right by a secured creditor.
Temporary residents — prescribed conditions
For the purposes of paragraph 4(2)(a) of the Act, the temporary resident must satisfy one of the following conditions:
(a) if they are enrolled in a program of authorized study at a designated learning institution, as defined in section 211.1 of the Immigration and Refugee Protection Regulations,
* (i) they filed all required income tax returns under the Income Tax Act for each of the five taxation years preceding the year in which the purchase was made,
* (ii) they were physically present in Canada for a minimum of 244 days in each of the five calendar years preceding the year in which the purchase was made,
* (iii) the purchase price of the residential property does not exceed $500,000, and
* (iv) they have not purchased more than one residential property; or
(b) if they hold a work permit, as defined in section 2 of the Immigration and Refugee Protection Regulations, or are authorized to work in Canada under section 186 of those Regulations,
* (i) they worked in Canada for a minimum period of three years within the four years preceding the year in which the purchase was made, if the work is full-time work as defined in subsection 73(1) of the Immigration and Refugee Protection Regulations,
* (ii) they filed all required income tax returns under the Income Tax Act for a minimum of three of the four taxation years preceding the year in which the purchase was made, and
* (iii) they have not purchased more than one residential property.
Exception — persons
For the purposes of paragraph 4(2)(d) of the Act, the following classes of persons are prescribed:
(a) foreign nationals who hold a passport that contains a valid diplomatic, consular, official or special representative acceptance issued by the Chief of Protocol for the Department of Foreign Affairs, Trade and Development;
(b) foreign nationals, with valid temporary resident status, whose temporary resident visa was issued, or temporary resident status was granted, following an exemption provided under section 25.2 of the Immigration and Refugee Protection Act, if the Minister is of the opinion that the exemption was justified based on public policy considerations to provide safe haven to those fleeing conflict; and
(c) persons that have made a claim for refugee protection in accordance with subsection 99(3) of the Immigration and Refugee Protection Act, if that claim has been found eligible and referred to the Refugee Protection Division under subsection 100(1) of that Act.