In this insightful YouTube video titled "Foreign Buyer Ban Extended in Canada," viewers delve into the latest updates surrounding Canada's foreign buyer ban.
1. Introduction to Canada's Foreign Buyer Ban extension: 🇨🇦 Learn about the recent extension of Canada's foreign buyer ban and its significance in the real estate market.
2. Date the ban started: 📅 Discover when this ban was initially implemented and its evolution over time.
3. Impact of the ban on various stakeholders: 💼 Understand how the ban affects different groups, including local homebuyers, investors, and the broader housing market.
4. Exceptions to the ban: 🚫🛑 Explore the specific circumstances or criteria that exempt certain individuals or properties from the ban's restrictions.
5. Discussion on potential implications for housing affordability, market dynamics, and government policies: 💬 Dive into conversations about the potential effects of the ban extension on housing affordability, market stability, and governmental regulations.
6. Encouragement for viewers to stay informed about the evolving landscape of Canadian real estate: 🏠💡 Stay updated and informed about the dynamic changes in the Canadian real estate market for informed decision-making.
3. Agenda
What is the ban? Date started?
Who is impacted by this ban?
What are the exceptions?
Looking forward
4. Previously
• Foreign buyer ban began on January 1st, 2023.
• Anyone who is not a Canadian Citizen or Permanent
Resident is prohibited from purchasing residential
homes (excluding cottages as well as 4+
multiplexes) within Canada for a period of 2 years.
• The ban is expiring on December 31st, 2024.
5. New changes
The rule, which was
first announced in
2022, will now be
extended until the
beginning of Jan 1,
2027.
It bans foreign
nationals and
commercial enterprises
from buying residential
property in Canada,
with some exceptions.
6. Rules for Foreign buyer
ban
• Non-Canadians can purchase residential
properties located outside of Census
Metropolitan Areas (CMA) and Census
Agglomerations (CA).
• If a non-Canadian, or anyone who
knowingly assists a non-Canadian, is
convicted of violating the prohibition,
they will have to pay a fine of up to
$10,000. Additionally, a court can order
the sale of the residential property.
7. Ban doesn’t apply to
• Purchase of vacant land zoned for residential and mixed use.
• Purchase of residential property for development (house flipping
not allowed)
• Temporary residents studying and/or working in Canada
8. Temporary
resident
conditions
Work permit holders Study permit holders
•hold a valid work permit or are
authorized to work in Canada, and
•have 183 days or more of validity
remaining on their work permit or
work authorization at time of
purchase, and
•have not previously purchased a
residential property in Canada
while the prohibition is in effect
• are enrolled in a program of
authorized study at a designated
learning institution
• have filed income tax returns for
each of the 5 taxation years
preceding the year in which the
purchase was made, and
• have been physically present in
Canada for a minimum of 244 days
in each of the 5 calendar years
preceding the year in which the
purchase was made, and
• have not previously purchased a
residential property in Canada while
the prohibition is in effect, and
•purchase a property for a price not
exceeding $500,000
9. Summary of exceptions
• International students having spent 5 years in Canada, with a purchase
limit of $500,000.
• Work permit holders with at least 3 years of filed tax returns in the last
4 years
• Diplomats, consulate staff, & other designated foreign dignitaries of
their employees
• Foreign nationals with temporary resident status, for example refugee
status
10. Conclusion
• Too many loopholes
• One foreigner can start a business and then hire themselves as a
temporary worker to qualify
• Multi-family dwelling can be purchased
• Buying outside the Census metropolitan areas is allowed
11. Does the Prohibition on the Purchase of Residential Property by Non-Canadians Act apply to
Ukrainians who came to Canada under the Canada-Ukraine Authorization for Emergency Travel
(CUAET) program?
• No. The Act doesn’t apply to people who have been granted temporary status because they are
fleeing a crisis, including Ukrainian nationals who came to Canada under the CUAET program.
Can non-Canadians acquire vacant land?
• Yes, as of March 27, 2023, the prohibition does not apply to vacant land.
Can non-Canadians purchase residential property for development purposes?
• Yes, as of March 27, 2023, the regulations provide an exception for non-Canadians purchasing
residential property for purposes of development.
FAQs
12. Thanks for listening
• Lakshay Gandhi CPA, CGA
• 647-987-4025
• Support@accountingops.ca
• Subscribe to my YouTube
channel – Real estate and
Taxes with Lakshay
