It has now been just over a year since the Prohibition on the Purchase of Residential Property by Non-Canadians Act, came into effect. Under this legislation, non-Canadians are barred from acquiring residential properties across the nation for a period of two years.This regulation is aiming to address housing affordability concerns within Canada. The Act does not extend to Canadians, permanent residents, or temporary residents who satisfy the exception criteria delineated in the Regulations.
Here are the key highlights of the Act:
- "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.
- Non-Canadians can purchase residential properties located outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA).
- Certain exceptions apply allowing Non-Canadians to purchase a residential property in defined circumstances.
- If a non-Canadian, or anyone who knowingly assists a non-Canadian, is convicted of violating the prohibition, they will have to pay a fine of up to $10,000. Additionally, a court can order the sale of the residential property.” - https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/consultations/prohibition-purchase-residential-property-non-canadians-act#:~:text=Effective%20as%20of%20January%201,in%20Canada%20for%202%20years
This legislative move by the Government of Canada aims to foster greater affordability and accessibility to housing for residents within the country. The Act primarily targets non-Canadians, including non-listed corporations and entities controlled by non-Canadians. Furthermore, the Act seeks to promote a fair and balanced housing market by addressing speculation and ensuring that Canadian residents have equitable access to housing opportunities.