Important additions to the homebuying ban law
Since January 1, 2023, began a ban on the purchase of housing by foreigners. But there are exceptions that give non-residents a chance to buy real estate.
February 2022 saw the highest home price increases in Canada. By the end of the year, costs had dropped slightly, but affordability remains an issue for many. Rising rates have had an impact on variable-rate mortgage payments.
Foreign investors were buying up housing in big cities, which drove up prices and closed off access to real estate for Canadians. So the government passed the law for a two-year ban.
Single-family houses, terraced houses, apartments and buildings of a similar type — all real estate intended for human habitation — fit under the ban. But the law applies to residential property that is located in a city or neighbourhood with a population of at least 100,000 people. With at least 50,000 living in the centre. The rules also apply to vacant land that has no residential buildings but is zoned for residential or mixed-use.
Thus, foreigners and immigrants can buy a house in a rural area or an area with a population of less than 10,000 people. The law does not prohibit renting residential premises.
Those planning to buy a home in 2023-2024 should research the information and the area very carefully with a Realtor. If the law is violated, there is a fine for whoever is buying and whoever is helping.
International students can buy real estate if they have lived in Canada for the past 5 years and have filed tax returns. Those who have a work visa also have this requirement: 3 years of residency and declarations for previous years. But for both categories, there is a limit on the purchase — 1 property not more expensive than $ 500 000 CAD.
