Maple News reports that the Canadian government has officially extended its ban on foreign homeownership for an additional two years, moving the prohibition’s expiry date to January 1, 2027. The policy is part of an ongoing effort to improve housing affordability for Canadian citizens and permanent residents amid an ongoing housing crisis.
Originally set to expire at the beginning of 2025, the Prohibition on the Purchase of Residential Property by Non-Canadians Act is designed to curb foreign demand in a hot real estate market and ensure Canadian homebuyers have better access to housing. The law restricts non-Canadians—defined as individuals who are neither Canadian citizens nor permanent residents—from purchasing certain types of residential property, including detached and semi-detached homes, row houses, and condominium units, in urban areas classified as Census Metropolitan Areas and Census Agglomerations.
There are some exemptions under the law. Non-Canadians may still acquire residential property in cases involving divorce, separation, inheritance, or as part of a court foreclosure. Individuals with valid work permits may purchase a home if they meet specific criteria, including having at least 183 days remaining on their permit and not owning more than one property. Additionally, the ban does not apply to residential properties in rural areas or vacant land zoned for residential or mixed-use development.
Changes introduced in April 2023 further relaxed some of the policy’s original restrictions. For instance, non-Canadians with valid work permits are now allowed to purchase commercial and mixed-use properties. The government also removed previous conditions requiring certain work experience or tax returns to qualify for the purchase of vacant land.
To comply with the law, foreign nationals looking to purchase or rent real estate must be able to demonstrate their eligibility through documentation, such as valid work or study permits issued by Immigration, Refugees and Citizenship Canada (IRCC), proof of residence, or records verifying the length of time they have legally lived in Canada.
Violating the ban carries significant consequences. Buyers, real estate professionals, or any parties found assisting in prohibited transactions may face fines of up to CAD $10,000. Furthermore, courts have the authority to order the sale of any residential property acquired in breach of the law, with the buyer potentially receiving no more than the original purchase price in return. In cases involving corporations or entities, their officers and executives may also be held personally accountable for violations.
The extension of this policy signals Canada’s firm stance on prioritizing domestic housing needs through tighter regulations on foreign ownership. The move is seen as part of the broader federal strategy to address the chronic housing shortage and rebalance Canada’s real estate market in favor of residents and newcomers establishing permanent roots.