Buyer Ban

Prohibition on the Purchase of Residential Property by Non-Canadians Act:


Effective Date: The Act came into effect on January 1, 2023.


Restricted Properties: The Act prohibits non-Canadian buyers from purchasing small residential properties in Canada, such as buildings with up to three units or individual units in larger buildings. However, larger buildings with multiple units remain open for purchase.


Penalties: Non-Canadians who violate the Act by purchasing or assisting in the purchase of a small residential property may face a fine of up to $10,000, and the property may be ordered to be sold by a court.


Verification of Residency: Real estate agents must now verify the residency of all buyers by requesting proof of residency through either a passport or residency card. If these forms of identification are not available, a driver's license and additional documentation may be requested.


Exceptions: There are exceptions to the ban, which can be found on the Canada Mortgage and Housing (CMHC) site.


It is important to note that the Act does not restrict non-Canadians from renting residential properties in Canada.


Learn more on the Canada Mortgage and Housing (CMHC) site.