the rennie landscape - fall 2022

policy

CANADA IS BANNING FOREIGN BUYERS! EXCEPT YOU, YOU, AND YOU. AND YOU.

The impending federal foreign buyer ban—officially referred to as the “Prohibition on the Purchase of Residential Property by Non-Canadians Act”—is set to come into force on January 1st, 2023.

In summary, the legislation is aimed at preventing non-Canadians from purchasing, directly or indirectly, residential property in Canada for a period of two years (Canadian citizens and permanent residents are not subject to this prohibition). The legislation is aimed at addressing concerns about housing availability and affordability across the country. But will it have an impact? For starters, in Metro Vancouver—a market long-cited as one more influenced by foreign buyers than other markets in the country—the foreign buyer incidence was most recently at a mere 1.3%.

Notably, and as it stands today, there are many exemptions to the upcoming ban on foreign buyers, including: commercial property buyers, international students, foreign nationals with work permits, refugees and people fleeing international crises, diplomats/consular staff/employees of international organizations, buyers of recreational properties or vacant land, and Indigenous Peoples living at or near the US-Canada border. Is this housing market justice, or just housing market jewelry? We'll let you decide (next year).

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