Government announces two-year extension to ban on foreign ownership of Canadian housing

From: Department of Finance Canada

News release

February 4, 2024 – Ottawa, Ontario – Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced the federal government’s intent to extend by an additional two years the existing ban on foreign ownership of Canadian housing.

For years, foreign money has been coming into Canada to buy up residential real estate, increasing housing affordability concerns in cities across the country, and particularly in major urban centres. Foreign ownership has also fueled worries about Canadians being priced out of housing markets in cities and towns across the country.

As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027. Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will continue to be prohibited from purchasing residential property in Canada.

The ban on foreign ownership of Canadian housing—and this two-year extension—is just one part of the federal government’s economic plan to make housing more affordable for Canadians. The federal government is taking bold action and working with all orders of government to build more homes, faster, and put homeownership back within reach for more Canadians.

 

Ensuring housing market remains available to Canadians

Ottawa, December 21, 2022

The Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion, today announced new regulations that will be used to implement the Prohibition on the Purchase of Residential Property by Non-Canadians Act, ensuring housing is owned by Canadians.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act will ban foreign investors from buying non-recreational residential property in Canada. The Act was passed by Parliament on June 23, 2022 and will come into effect on January 1, 2023, for a period of two years. 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.

The Act prohibits foreign commercial enterprises and people who are not Canadian citizens or permanent residents from acquiring non-recreational, residential property in Canada. It establishes a $10,000 fine for non-Canadians who buy residential property in contravention of the prohibition. Exceptions are set out for some circumstances. Individuals with temporary work permits, refugee claimants, and international students may be exempt if they meet certain criteria.

The Government of Canada consulted with government partners, stakeholders, and Canadians to develop accompanying regulations to set out specific exceptions, definitions, and clarifications necessary to implement the prohibition. The regulations, published in the Canada Gazette today, will come into effect January 1, 2023. The regulations will be automatically repealed after two years.

The prohibition is just one way that the government is working to make housing more accessible to Canadians. Through our National Housing Strategy, we’re investing in initiatives to increase the supply of rental housing, build more homes, and bring down the barriers that keep them from being built.

Quote:

“Homes should not be commodities. 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. We will continue to do whatever we can to ensure that all residents of this country have a home that is affordable and that meets their needs.”— The Honourable Ahmed Hussen, Minister of Housing and Diversity and Inclusion

Associated links:

View a copy of the Prohibition on the Purchase of Residential Property by Non-Canadians Regulations.

Access more information on the Act.

For information on this release:

Brittany-Anne Hendrych
Office of the Minister of Housing and Diversity and Inclusion
Brittany-Anne.Hendrych@infc.gc.ca

Media Relations
Canada Mortgage and Housing Corporation
media@cmhc-schl.gc.ca