Starting on January 1, 2023, foreigners will temporarily be unable to purchase homes in the country under this new Act. This ban will last two years until December 31, 2024.
Let’s break down what exactly this means and who is impacted.
First of all, the new rules apply to “non-Canadians.” That includes:
Individuals who are not Canadian citizens.
Individuals who are not permanent residents of Canada.
Corporations incorporated outside Canada.
Corporations “controlled” by foreign corporations or individuals who are neither Canadian residents nor permanent residents.
Secondly, the Act applies specifically to residential property. That is defined as:
A detached house or similar building that contains up to and including three dwelling units, which are in turn defined as a “residential unit that contains private kitchen facilities, a private bath and a private living area”; and
A part of a building that is intended to be owned and used as a place of residence. This explicitly includes but is not limited to portions of semi-detached homes, rowhouse units, and residential condominium units.