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As of January 1st, the Prohibition on the purchase of residential property will be enforced for all Non-Canadians for 2 years. (Jan1, 2023-Dec 31, 24)

 

Non-Canadian means:

 

• an individual who is neither a Canadian Citizen nor a person registered as an Indian under the Indian Act nor a permanent resident
• a corporation that is incorporated otherwise than under the law of Canada or a Province
• a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada for which a designation under the Income Tax Act is in effect and that is controlled by a person for the 2 points above.
• a prescribed person or entity that was not born in Canada or granted Canadian residency The Government will convict anyone that assists or aids a non-Canadian to purchase, directly or indirectly, any residential property knowing that the non-Canadian is prohibited under this Act from purchasing the property is guilty of an offense and liable on conviction to a fine of not more than $10,000. The non-Canadian will be forced to sell the property.

 

Exceptions:

 

This law does not prohibit the purchase of larger buildings with multiple units.

 

Temporary residents studying in Canada if they:

 

•  are enrolled in a program of authorized study at a designated learning institution as defined in the Immigration and Refugee Protection Regulations
• have filed income tax returns for each of the 5 taxation years preceding the year in which the purchase was made
• have been physically present in Canada for a minimum of 244 days in each of the 5 calendar years preceding the year in which the purchase was made
• have not previously purchased a residential property in Canada while the prohibition is in effect
• purchase a property for a price not exceeding $500,000

 

Temporary residents working in Canada if they:

 

• hold a valid work permit or are authorized to work in Canada
• have worked full-time in Canada for at least 3 years within the 4 years preceding the year in which the purchase was made
• have filed income tax returns for 3 of the 4 taxation years preceding the year in which the purchase was made
• have not previously purchased a residential property in Canada while the prohibition is in effect

 

Refugees, if they:

 

• have been given refugee protection or are a protected person under the Immigration and Refugee Protection Act, 2001

 

Refugee claimants and individuals fleeing international crises if they:

 

• have made a claim for refugee protection in accordance with the Immigration and Refugee Protection Act, if that claim has been found eligible and referred to the Refugee Protection Division; or

• have received temporary resident status in accordance with the Immigration and Refugee Protection Act based on humanitarian public policy considerations to provide a haven to those fleeing conflict

 

Accredited members of foreign missions in Canada if they:

 

• hold a passport that has a valid diplomatic, consular, official, or special representative acceptance issued by the Chief of Protocol of Canada

 

Section 35 Rights – Indigenous People and Communities

 

The Regulations clarify that the prohibition doesn’t apply if it conflicts with the rights recognized and affirmed by Section 35 of the Constitution Act, 1982. Section 35 recognizes and affirms the existing Indigenous and treaty rights of Indigenous peoples of Canada. These may include ownership rights to land, rights to occupy and use lands and resources, land to be set aside for First Nation use only, self-government rights, and cultural and social rights.

 

Exceptions for certain types of property

 

The Regulations include an exception for any residential property found outside of a Census Metropolitan Area or Census Agglomeration as identified in Statistics Canada’s Standard Geographical Classification 2021. Both Census Metropolitan Areas and Census Agglomerations are formed by 1 or more adjacent municipalities centered on a population center, or the core.

 

A Census Metropolitan Area must have a total population of at least 100,000 of which 50,000 or more must live in the core and a Census Agglomeration must have a core population of at least 10,000.

 

Whether a residential property is located within a Census Metropolitan Area (CMA) or a Census Agglomeration (CA) can be determined by accessing the Standard Geographical Classification (SGC) reference maps. More detailed maps of CMAs and certain CAs are also available by accessing Statistics Canada’s Census Tract reference maps. Statistics Canada has also created an interactive mapping tool that could help determine if a specific residential property is part of a CMA or CA.

 

Let us assist navigating your options and the costs associated with buying in Canada if you have applied or are applying for a Permanent Status Card.  We have options and we can outline the lending criteria to assist you.  Contact Mortgage Architects Bennett Capital Group at [email protected]