NEWCOMERS TO CANADA
Understanding the Prohibition on Non-Canadian Purchase of Residential Property
As of January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act has been in effect, extending to January 1, 2027, following a recent 2-year extension announcement by the Finance Minister and Deputy Prime Minister on February 4, 2024. This legislation prohibits non-Canadians from acquiring residential homes in Canada for the specified duration, except for properties exempted from the act, such as buildings with more than 3 dwellings and recreational properties.
​
The Act applies to non-Canadians, including corporations and entities not listed on a Canadian stock exchange, controlled by non-Canadians. However, certain exceptions are outlined for Canadians, permanent residents, and temporary residents who meet specific criteria.
​
Exceptions outlined in the Act and Regulations include:
-
Temporary Residents Studying in Canada: Must meet specific conditions, including enrollment in an authorized study program and a minimum physical presence in Canada.
-
Temporary Residents Working in Canada: Conditions include holding a valid work permit and not having previously purchased residential property in Canada during the prohibition period.
-
Refugees and Refugee Claimants: Criteria apply to individuals with refugee protection status or those fleeing international crises.
-
Accredited Members of Foreign Missions: Specific conditions pertain to individuals holding valid diplomatic, consular, or official passports.
-
Non-Canadian Spouses and Common-Law Partners: These individuals can purchase property jointly with a Canadian citizen, permanent resident, or a non-Canadian exempt from the prohibition.
Exceptions for Certain Types of Property:
The Regulations also provide exceptions for residential properties located outside of Census Metropolitan Areas (CMAs) or Census Agglomerations (CAs).
​
Penalties and Fines:
Violating the act or knowingly assisting a non-Canadian in violating it carries a penalty of $10,000, with potential court-ordered property sale upon conviction.
​
With various rules and exceptions under this new legislation, please don't hesitate to reach out if you have any questions.
New to Canada Financing Options:
We offer specialized financing solutions for newcomers to Canada, whether you're a permanent resident, on a work permit, or a temporary resident. With products requiring as little as 5% down, we provide tailored options to suit your unique circumstances.
​
Requirements to Qualify for a New to Canada Mortgage:
Criteria include income and employment verification, credit history assessment, and minimum down payment conditions. We're here to guide you through the process and help you achieve your homeownership goals in Canada.