In order to curb rising home prices and prevent money from being "parked" in Canada, the government banned foreign buyers on January 1, 2023. Some exemptions applied such as permanent residents, temporary residents and students.

Original Foreign Buyer Ban

View CMHC's article of the original January release.

March 2023 Amendments

On March 27, 2023, the Canadian government announced some amendments to the Foreign Buyer Ban. Changes are effective immediately. Below is an overview of the changes.

Foreign Buyer Ban No Longer Applies to Work Permit Holders

Therefore, people who hold a work permit or are authorized to work in Canada, are now allowed to purchase residential property. This exception will apply so long as the permit holders have 183 days of validity or more remaining on their permit, and also haven't purchased more than one residential property.

Foreign Buyer Ban Allows Non-Canadians to Purchase Residential Property for Development

This will likely not include leasing or renting the property out to tenants or otherwise managing property as a rental property as part of a portfolio, so please look into this further. Also, repairs, renovations and remodelling is not considered a “development”. Rather, only expansions or remodels that are equivalent to constructing a new building or changing the use of a property will apply. 

Foreign Buyer Ban No Longer Applies to Vacant Land

Non-Canadians can now purchase vacant land zoned for residential use and use it for any purpose.

Foreign Control Threshold is now 10%

Previously, an entity was deemed foreign if non-Canadians owned 3% or more of it. With the amendment, the maximum amount of non-Canadian control is 10%.

View All Details of the Canadian Foreign Buyer Ban

We recommend contacting CMHC to confirm all the details and confirm whether you can purchase now as a foreign buyer.

Contact us if you have any questions.

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