Regulations for 2023 ban on foreign homebuyers announced

The Canadian Real Estate Association (CREA) says it is concerned realtors could face extra costs as a result of the federal government’s ban on foreign homebuyers beginning next year.

As of Jan. 1, foreign commercial enterprises and people will be prohibited from purchasing residential properties in Canada for two years.

The ban, which was passed by Parliament on June 23, aims to address housing affordability issues.

In an email statement to CHCH News, the CREA said it may cost realtors more when assessing the eligibility of a buyer or determining whether a property is residential or recreational. It says realtors will likely require additional documentation from potential buyers to avoid violating the ban.

“The Canadian Real Estate Association is disappointed with [Wednesday’s] release of the regulations surrounding the Prohibition on the Purchase of Residential Property by Non-Canadians Act,” said Pierre Leduc, a spokesperson for the association.

“We don’t agree with the government’s analysis that the regulations…won’t add costs to transactions.”

There are some exceptions to the ban, including for those with temporary work permits, refugee claimants and international students who meet specific criteria.

Non-Canadians who disobey the ban will be fined up to $10,000 and may have to sell the property.

In a news release, Housing Minister Ahmed Hussen said housing shouldn’t be a “commodity” and that the ban will ensure homes are owned by Canadians.