Foreign Buyers Ban in Canada

  • The foreign buyers ban in Canada, originally set to last two years from January 2023, has been extended and will now remain in effect until January 2027.

  • This legislation applies to all non-Canadians, regardless of nationality. Only Canadian citizens, permanent residents, and specific exempt groups can purchase residential property during the ban.

  • Residential Properties are affect by this legislation.

    The Act defines residential property as buildings with 3 dwelling units or less. This includes semi-detached houses and condominium units. The Act doesn’t prohibit the purchase of larger buildings with 4 or more dwelling units.

Exemptions to the Act

1. Temporary Residents Studying in Canada: Students enrolled in authorized programs at designated learning institutions may purchase residential property if they:

- Have filed income tax returns for the five years preceding the purchase year.

- Were physically present in Canada for at least 244 days in each of those five years.

- Have not previously purchased residential property in Canada while the prohibition is in effect.

- Acquire a property priced at $500,000 or less.

2. Temporary Residents Working in Canada: Individuals holding valid work permits or authorizations can buy residential property if they:

- Have at least 183 days of validity remaining on their work permit or authorization at the time of purchase.

- Have not previously purchased residential property in Canada while the prohibition is in effect.

3. **Refugees and Protected Persons**: Those granted refugee protection or recognized as protected persons under the Immigration and Refugee Protection Act are exempt from the prohibition.

4. Refugee Claimants and Individuals Fleeing International Crises: Exemptions apply to individuals who:

- Have made a claim for refugee protection that has been found eligible and referred to the Refugee Protection Division.

- Have received temporary resident status based on humanitarian public policy considerations to provide a safe haven to those fleeing conflict.

5. Accredited Members of Foreign Missions in Canada**: Individuals holding valid diplomatic, consular, official, or special representative acceptance issued by the Chief of Protocol of Canada are exempt.

6. Non-Canadian Spouses and Common-Law Partners: Non-Canadians purchasing residential property with their Canadian citizen, person registered under the Indian Act, permanent resident, or exempt non-Canadian spouse or common-law partner are not subject to the prohibition.

7. Indigenous Peoples and Communities: The prohibition does not apply if it conflicts with rights recognized and affirmed by Section 35 of the Constitution Act, 1982, which includes existing Indigenous and treaty rights.

8. Certain Types of Property: Residential properties located outside of Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs) are exempt from the prohibition. CMAs have a total population of at least 100,000, with 50,000 or more in the core, while CAs have a core population of at least 10,000.

Check with the “Property Location Search” Button to see if the property you are interested in is within or outside of the geographical exemption

**Disclaimer:** The information provided here is for general informational purposes only and does not constitute legal advice. This summary should not be relied upon without consulting a qualified legal professional. For specific guidance regarding your unique circumstances, please seek legal representation.