Please know that the prohibition is a temporary, two-year measure that forms part of the Government’s near-term response to urgent housing affordability concerns experienced by Canadians.
In Budget 2022, the Government also committed to providing exceptions from the prohibition for specific groups of non-Canadians and types of residential property to be clarified in the Regulations. This includes exceptions for certain non-Canadians working toward permanent residency, who have lived in Canada for extended periods of time and intend to settle permanently, as well as clarifications around the treatment of recreational property.
The Act was subject to extensive public engagement over the past year, including pre-Budget consultations, the announcement in Budget 2022, and deliberation in Parliament. The Regulations were also subject to a broad-based consultation process led by Canada Mortgage and Housing Corporation (CMHC).
Throughout the consultation period, CMHC received and reviewed submissions from provincial and local real estate associations and real estate professionals from across Canada, which contained helpful suggestions to improve the proposals for the Regulations. As a result of stakeholder feedback, CMHC will publish plain language information material on its website that supports the Act and the Regulations, including frequently asked questions and answers for individuals and industry professionals.
The Prohibition on the Purchase of Residential Property by Non-Canadians Act comes into force January 1, 2023. The Act seeks to prohibit the purchase of residential property by non-Canadians. Of note, the Act says that every non-Canadian who contravenes this prohibition and every person or entity that counsels, aids, or attempts to counsel or aid a non-Canadian to purchase, directly or indirectly, any residential property is guilty of an offence and liable on summary conviction to a fine of not more than $10,000 (see section 6). In addition to the penalties, the Minister may apply to court for an order to sell a property that has been purchased in contravention of the Act.
- Only Canadians will be allowed to own residential real estate in Canada as of January 1, 2023. - December 16, 2022
- Real Estate Deals That Fall Apart - April 27, 2022
- Private Contracts of Purchase and Sale of Real Estate - April 20, 2022