What Does Canada's Two-Year Foreign Buyers Ban Mean
As of January 1, 2023, the Canadian government has implemented the Prohibition on the Purchase of Residential Property by Non-Canadians Act, also known as the Two-Year Foreign Buyers Ban, which is intended to prevent non-Canadians and corporations controlled by non-Canadians from purchasing residential property in Canada for 2 years. The aim of the ban is to cool speculation and home price growth that has left home ownership unaffordable to many Canadians.
The ban prohibits non-Canadian citizens or non-permanent residents from buying residential properties and imposes a $10,000 fine on those who breach it. Both the non-Canadian purchaser as well as any person or entity that knowingly assists in the purchase are subject to the fine, and the property may also be forced to be sold.
The Act defines residential property as buildings with 3 homes or less, as well as parts of buildings like a semi-detached house (townhouse) or condominium unit.
Canada's Two-Year Foreign Buyers Ban Has Some Exceptions
This is exempt to certain people including temporary residents working in Canada with work permits, refugee claimants and individuals fleeing international crises, and international students who meet certain criteria.
There has been some confusion on the geographic exemptions to the foreign homebuyers ban. This Act does not apply to areas outside of a Census Agglomeration or Census Metropolitan Area. {This means most of the South Okanagan, besides Penticton, is exempt from this Act.}
To determine if your property is in a Census Agglomeration or Census Metropolitan area, you can refer to the following links:
Follow this link to learn about exceptions for Canada’s two-year foreign buyers plan.
If you would like more information or to chat about what this means to you and if it affects you, please do not hesitate to call, text or email me!
