Non-Canadians: WHAT Can you buy in Canada?
DOES THE LAW PROHIBITING THE PURCHASE OF RESIDENTIAL PROPERTY BY NON-CANADIANS AFFECT YOU AND CAN YOU STILL BUY?
The law went into effect on January 1, 2023 and will expire on December 31, 2024.
Heidy Pinsonneault has prepared a short video for you that covers the criteria to consider, such as the location of the property (CMA, AR or Out-of-area), who is affected (non-canadian citizens), and the types of properties prohibited (dwellings of 3 units or less).
Exceptions are provided and the purchase of residential properties is still allowed in certain areas.
Start by watching the video to learn more about this new law...
5 minutes to understand the new law
This short video summarizes the ins and outs of this ban law, which is intended to be temporary.
With the right elements in your hands you will be able to make informed decisions.
Making it easier for you to understand this regulation will guide you for the rest of your real estate project in Canada.
In order to understand how the law applies, three criteria must be considered: the location of the property, who is affected by the ban, and the types of properties affected.
With respect to the location of the property, the law does not apply to all of Canada, but rather to the most populated areas. To determine if a municipality is subject to the ban, the Canadian government refers future buyers and professionnals to the CMA (Census Metropolitan Area) and CA (Census Agglomeration) maps.
Only Canadian citizens will be able to purchase residential real estate in areas subject to the ban, but there are exceptions for Aboriginal people, permanent residents, diplomats and refugees.
Foreign students may also purchase properties, but the criteria are very restrictive.
Temporary residents on work permits must have worked full-time for three of the last four years in the country and have filed three tax returns during those four years.
Canadian companies with a non-Canadian shareholder are also subject to the ban if the non-canadian holds more than 3% of the equity or voting power.
Finally, the law applies to residential properties of three units or less, which include condominiums, single-family homes, townhouses, duplexes, triplexes and lots.
Non-canadians can still purchase residential properties of four units or more within the CMA and CA zones, as well as unrestricted properties outside these areas.
It is important to understand the intricacies of this new ban.
To make it easier for you to understand, we have designed a unique tool in Canada that will allow you to identify, as a non-Canadian, which type of residential property you can buy in specific cities and municipalities.