The new ban is intended to help alleviate the skyrocketing prices.
Today I’m here to talk about the new non-Canadian ban on residential property purchases. This question came from one of the subscribers, and I know they aren’t the only ones wondering. Have you heard of this ban? I’m here to keep you informed, so here is what you should know.
As of today, the following people can purchase residential and commercial property in Canada: Canadian citizens, permanent residents, non-permanent residents, students, and people with work visas. Anyone who has an authorized reason for being in Canada can purchase property there. Then, how they can buy and what kind of financing they can get depends on their citizenship and residency status.
In the most recent federal elections, there was a popular opinion that nonresident buyers were driving prices up because they were being speculators. Therefore, as an electoral promise, the federal government said that they would ban non-Canadian from purchasing property for two years, and that will go into effect on January 1, 2023. In this case, their definition of non-Canadian is anyone who isn’t a citizen or resident. Therefore, if you’re a student, here on a work permit, a temporary or permanent resident, or a citizen, you can still purchase property in Canada.
If you are purchasing property as an investment, there are a few exceptions that you should be aware of. First, a non-resident can buy if they’re purchasing in co-ownership with a spouse who’s a resident. Also, these bans are catered toward single-family dwellings and duplexes because there are exceptions for multi-unit properties and commercial dwellings.
In the end, this was designed as a promise to the voters to help lower the price appreciation and speculation on residential properties. However, in my opinion, I don’t think it’s truly going to make a difference because these non-resident/non-citizen purchasers represent an extremely small part of the real estate market.
If you have any questions about the ban or real estate in general, don’t hesitate to call or email me. I am always happy to help!