The Canadian government has recently announced that they will be extending the Prohibition on the Purchase of Residential Property by Non-Canadians Act until January 1st, 2027. This policy was initially put in place to increase the number of housing units available to Canadians for purchase, and will now be in effect for an additional two years, as it was originally set to expire at the start of 2025.
Under this extended policy, non-Canadians (those who are not Canadian citizens or permanent residents) are prohibited from buying residential property, which is defined as buildings with 3 dwelling units or less, including semi-detached houses, and condominium units. However, non-Canadians can still purchase residential properties outside of Census Metropolitan Areas and Census Agglomerations.
The Act outlines some situations where non-Canadians would be allowed to purchase residential property in major population centers, including acquiring an interest in a residential property because of a divorce, separation, gift, or death and renting a dwelling unit to occupy the dwelling unit.
The Canadian government has also amended the rules to allow non-Canadians with a valid work permit to purchase mixed-use and commercial land, under certain conditions. These conditions include having at least 183 days left on their work permit, or work authorization at the time of purchase, and only purchasing one residential property in Canada.
Non-Canadians who are found improperly buying Canadian residential property may face criminal charges and fines. The Act also allows a court to order the sale of the residential property, with the non-Canadian receiving no more than the price paid to purchase the residential property.
Beyond the extension of the Act, the Canadian government has instituted additional measures to create more affordable housing for Canadians. This includes the Apartment Construction Loan Program, Housing Accelerator Fund, and more.
According to the Canadian Real Estate Agency (CREA), the average price of homes sold in Canada in December 2023 was $657,145 CAD, representing an increase of 5.1% from the price of homes sold in December 2022.
Overall, the extension of the Prohibition on the Purchase of Residential Property by Non-Canadians Act is one of the many measures that the Canadian government has put in place to ensure affordable housing for Canadians and to regulate the real estate market. If you’re interested in migrating to Canada, you can utilize the link to check your eligibility for Canadian immigration.
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