Prohibition on the Purchase of Residential Property by Non-Canadians Act

Effective as of January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) prevents non-Canadians from buying residential property in Canada for 2 years.

Two-year extension to the Prohibition on the Purchase of Residential Property by Non-Canadians Act

On February 4, 2024, the Government of Canada announced its intention to extend the existing ban on foreign ownership of Canadian housing for an additional two years, to January 1, 2027.  For more information, please refer to the news release issued by the Department of Finance Canada. Due to the extension of the legislation by two years, the government continues to welcome feedback from stakeholders to address issues that may arise from the extension.

residential property means any real property or immovable, other than a prescribed real property or immovable, that is situated in Canada and that is

• (a) a detached house or similar building, containing not more than three dwelling units, together with that proportion of the appurtenances to the building and the land subjacent or immediately contiguous to the building that is reasonably necessary for its use and enjoyment as a place of residence for individuals;

• (b) a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property or immovable owned, or intended to be owned, apart from any other unit in the building, together with that proportion of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the house, unit or premises and that is reasonably necessary for its use and enjoyment as a place of residence for individuals; or

• (c) any prescribed real property or immovable. (immeuble résidentiel)

• Exception — persons

  (2) Subsection (1) does not apply to

  • (a) a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions;

  • (b) a protected person within the meaning of subsection 95(2) of that Act;

  • (c) an individual who is a non-Canadian and who purchases residential property in Canada with their spouse or common-law partner if the spouse or common law-partner is a Canadian citizen, person registered as an Indian under the Indian Act, permanent resident or person referred to in paragraph (a) or (b); or

  • (d) a person of a prescribed class of persons.

• Marginal note:Exception — circumstances

  (3) Subsection (1) does not apply in prescribed circumstances.

For more information, please read the link here.