On January 1, 2023, the law prohibiting the purchase of residential real estate by non-Canadians will come into effect. This law prohibits for a period of 2 years all purchases of real estate in Canada by non-Canadians.
On December 9, the government published a regulation to clarify the exceptions to this prohibition.
Our mortgage brokers explain in detail the exceptions to this prohibition conditioned by the December 9, 2022 regulation.
Thus, this regulation establishes that this prohibition does not include:
- permanent residents
- the temporary resident, under conditions:
– have a valid study permit, as long as these conditions are met:
→file all tax returns for the 5 tax years prior to the purchase
→ be present on Canadian territory at least 244 days per year for the last 5 years prior to the purchase
→ the purchase price must not exceed $500,000
→ only one residential property must be purchased
– to have a work permit, as long as these conditions are met:
→ the employment was full-time for at least 3 years during the 4 years prior to the purchase
→ file all tax returns for at least 3 years in the 4 years prior to purchase
→ only one residential property must be purchased
- refugees
- a non-Canadian who purchases a residential property with his or her spouse or common-law partner, as long as the spouse or common-law partner is eligible to purchase a property in Canada
- foreigners who have a valid acceptance as a diplomat, consular officer, civil servant or special representative
- in case of acquisition of the property through inheritance, gift, divorce or separation
- in the case of a transfer from a trust created before January 1, 2023
- in the event of a transfer under a security interest or other secured interest
All professionals such as notaries, lawyers, real estate and mortgage brokers are required to inform their clients of this prohibition and the resulting exceptions.
If you violate this prohibition, you and anyone who assisted you are subject to a fine of up to $10,000 and your property may be forcibly sold.
However, the order of sale cannot be issued if these 3 conditions are met:
- the non-Canadian owns the residential property at issue at the time of the order of sale
- notice has been given to persons who may have an interest in the property in question
- the court before which the matter is brought finds that the impact of an order of sale is not disproportionate to the contravention
With respect to purchase and sale agreements signed before January 1, 2023, these may be entered into after the implementation of the Prohibition Act.
Our brokers believe that this legislation is not appropriate, especially for temporary residents who should have the opportunity to move to Canada with their families. We believe that skilled workers who move to Canada should have the right to own property to live in and not for speculative purposes.
We invite you to sign this petition to challenge the law to prohibit the purchase of real estate by non-Canadians .
For more information or questions, we invite you to contact our mortgage brokers at (514) 447-3000 or by appointment.
