Canada Sets 2 Years Ban on Certain NRIs from Buying Property
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Effective 1 January 2023, Canada will prohibit certain non-resident groups from purchasing residential property for the next two years. This ban excludes international students and foreign workers, who may later on become permanent residents. The Federal government has come up with a few exemptions, aiming to improve housing affordability, especially for Canadian citizens.
The prohibition was first a plan in the April budget. But details of this were released recently, giving just 11 days to realtors to buy a property that will fall under ban otherwise from New Year 2023. Non-Canadian entities such as foreign-controlled Canadian entities and corporations will be included in this ban.
Exemptions Announced by the Federal Government
The exemptions are mentioned in the following:
- Consular staff, members, and diplomats of international groups and organizations residing in Canada.
- The existing permanent residents and Canadian citizens.
- Recreational property such as vacation homes, cabins, and cottages. Buildings that contain more than 3 dwelling units.
- Before purchasing a property, workers who have a history of employment in Canada and filed income tax returns for the last 3 to 4 years.
- Foreign nationals including refugees and those fleeing conflict with temporary resident status.
The Road Ahead for Non-Residents Excluded from the Ban
The CMHC (Canada Mortgage and Housing Corporation) that international students and foreign workers living in Canada for a long time may intend for a permanent residency. And such individuals can purchase residential homes or encounter prolonged and difficult transitions to Canada as the housing options will reduce for them.
But the non-eligible NRIs who breach the ban and buy a property or those who help them knowingly to do so will be fined up to $10,000 and convicted. The court will then hold the power to announce the sale of the concerned property.
