Jan 2023
January 1, 2023 – An Update to the Prohibition on the Purchase of Residential Property by Non-Canadians Act
Now in force, further details on the Act announced.
By David Young
April 4th—This Act has been amended. Click here to read our article on these changes.
Making headlines this week, the legislation prohibiting non-Canadians from purchasing residential property in Canada has come into force.
As mentioned in our previous article on this act, posted in October 2022: properties within a Census Metropolitan Area (having a population of at least 100,000) or Census Agglomeration Area (having a population of at least 10,000) are subject to the prohibition against non-Canadian purchasers.
What this means in general terms, is that any properties located in a municipality with a core population of less than 10,000 people, will be excepted from the ban.
However, there are some exceptions to the general definitions. Therefore, it is necessary to examine the below metropolitan classification map, found online here, to confirm the classification of the municipality where a property is located, if you are a Non-Canadian looking to purchase a residential property.
For example, if you are a non-Canadian is purchasing a recreational style property like a cottage, you will still be permitted to purchase the property, as long as it is outside these Census Metropolitan and Census Agglomeration areas.
As demonstrated on the map above, areas in dark and light orange are subject to this ban, while areas in shades of green are not. Those familiar with Southern Ontario will notice areas like Toronto, Hamilton, London and Kitchener are subject to the ban, while more remote municipalities such as Bruce and Huron are not.
More Clarification on Exempted Groups
In late December, around 10 days before the legislation came into force, the Federal Government expanded the definition of groups of temporary residents that are exempted from the Non-Canadian purchaser ban.
The definition of exempted temporary residents now includes:
- International students who have been in the country for at least five years, and are purchasing under $500,000;
- Temporary work permit holders who have been in the country working full time for at least three our of the last four years; and
- Temporary residents fleeing conflict or refugee claimants.
More Clarification on Exempted Property
Further, the Federal governments update also clarified that commercial property, as well as residential properties containing more than 3 units (such as a 4-plex) are exempted from the ban.
If you have any questions, wish to discuss the ban, or are wondering if you are an exempted party or purchasing in an exempted Municipality, please reach out to one of our real estate lawyers.