New rules come into effect for a two-year period starting January 1
Canada Mortgage Housing Corporation has announced new regulations that will be used for the implementation of the “Prohibition on the Purchase of Residential Property by Non-Canadians Act,” which comes into effect for a two-year period starting January 1.
The legislation will prohibit non-Canadian citizens and non-permanent residents, as well as foreign commercial enterprises, from buying non-recreational residential property in Canada.
“As part of its strategy to tackle the housing affordability struggles of Canadians, the government of Canada announced these measures in Budget 2022, to ensure that housing is owned by Canadians, and not by foreign investors,” CMHC said.
What would be the penalties for foreign home buyers?
Violators will face a $10,000 fine and might be ordered to sell the property they have acquired, although CMHC said that some exceptions have been set aside for those who hold temporary work permits, those who study as international students, and those who have applied for refugee status, provided they meet certain criteria.
“Homes should not be commodities,” said Ahmed Hussen, Minister of Housing and Diversity and Inclusion. “Homes are meant to be lived in, a place where families can lay down roots, create memories and build a life together. Through this legislation, we’re taking action to ensure that housing is owned by Canadians, for the benefit of everyone who lives in this country.”
