Prohibition on Purchase of Residential Property by Non-Canadians Act prevents non-Canadians from buying residential property for 2 years starting January 1.
Beginning January 1st, foreign companies and non-resident individuals will be banned from buying residential housing or properties in Canada for a period of two years.
This policy, which was instituted by the Canada Mortgage and Housing Corporation (CMHC) and approved by Parliament on June 23rd, seeks to alleviate housing affordability issues in the country.
Local Government MP Kamal Khera stated in 2019 that “In recent years, housing speculation by foreign owners has become a major challenge, driving up housing prices for people across the country. Canada is not a place for those who wish to purely speculate in the housing market“.
“In recent years, housing speculation by foreign owners has become a major challenge, driving up housing prices for people across the country. Canada is not a place for those who wish to purely speculate in the housing market“.Kamal Khera, Member of Parliament, Brampton-West
In the new rules, exemptions will be made for those with temporary work permits, refugee claimants, and international students meeting specific requirements.
The government’s new rules were released yesterday by the CMHC, just two weeks before coming into force.
Violators of the ban will face fines up to $10,000 and may be ordered to sell the property.
Housing Minister Ahmed Hussen stated in a press release that housing should not be treated as a “commodity” and that the ban will ensure that homes in Canada are owned by Canadians.
According to the Canadian Housing Statistics Program, in 2020 non-resident ownership accounted for 2.2% of residential properties in Ontario.