Foreigners Ban Real Estate Purchases

Foreigners Ban Real Estate Purchases

Days before non-residents were banned from buying homes in Canada, the federal government announced exemptions from the ban for many foreign workers and international students who plan to live in Canada for a long time.

From January 1, foreigners will be banned from buying residential properties for two years. The federal government announced a ban as part of its April budget, saying the move would help improve Canadians' chances of buying homes. However, the details of where the ban will apply and where it will be exempted have given potential buyers and real estate agents just 11 days to finalize all purchases that could be banned in the New Year.

Banning exemptions include:

Canadian citizens and permanent residents and international students who meet certain requirements, including those who have spent most of the previous five years in Canada, will be able to purchase properties for less than $500,000. The ban also exempts foreigners and refugees with temporary residency status, including workers who worked and filed taxes for at least three of four years before purchasing properties in Canada, diplomats, consular staff and international organization members, and people fleeing conflict.

The Canadian Mortgage and Housing Corporation (CMHC) says long-term foreign workers and international students in Canada are "working on a trial basis for permanent residency" and will be allowed to buy homes because they could face "a more difficult or longer-term transition to Canada." "It is up to individuals to prove that they meet the requirements during their stay in Canada," the agency said in a regulatory impact analysis statement accompanying the new rules. New tax-free home savings accounts, foreign buyers ban best budget plans to cope with possible home purchases. Non-residents who purchase property in violation of the ban and those who know and help them can be convicted and fined up to $10,000 and the court will have the power to order the sale of the property.

According to data from the Canadian Housing Statistics Programme, non-residents make up less than 4% of homeowners in most areas, including Ontario and British Columbia. It is unclear how the ban will affect Canada's housing market. In a statement to CBC News, the Canadian Real Estate Association (CREA) expressed concern that real estate agents could face additional costs in assessing the eligibility of buyers or in deciding whether properties are classified as residential or recreational. As a result, real estate agents are likely to require additional documents from all buyers to avoid violating the ban, CREA said.

(Picture = CREA)