Starting on January 1, 2023, non-residents will not be permitted to buy residential property in Canada for a two-year period. In order to boost Canadians’ access to affordable housing, the Canadian government had stated that the restriction had been implemented as part of its budget.
‘Homes should not be seen as commodities’. Then, Ahmed Hussen, the minister of housing and diversity and inclusion, remarked, ‘Homes are designed to be lived in, a place where families can set down roots, make memories, and build a life together’. This suggests that non-Canadian organisations, including businesses, will be prevented from purchasing real estate. Included in this are Canadian companies that are under foreign management.
After the new rules were announced, the government clarified the order that said that although non-residents are prohibited from purchasing real estate, there are specific exceptions that provide access to some persons. Refugees and foreign nationals with temporary residence status, particularly those fleeing violence, are exempt from the limitations. Additionally excluded are Canadian citizens who work as ambassadors, consular personnel, or representatives of international organisations.
The rule does not apply to international students who have spent the bulk of the previous five years in Canada. The prohibition does not apply to employees who have worked and filed tax returns in Canada for at least three of the four years before the purchase of a home. Additionally excluded are buildings with more than three residential units and recreational real estate, such as cottages, cabins, and other second homes.