The Countdown to the Foreign Buyer Ban is On

BY Scott Moore, REALTOR

There is not much time left for non-Canadian buyers to purchase real estate in Canada— the foreign buyer ban takes effect on January 1, 2023.

What is the Foreign Buyer Ban?

The federal government has introduced legislation that bans the purchase of residential real estate by non-Canadians. The Prohibition on the Purchase of Residential Property by Non-Canadians Act (The "Act") comes into effect on January 1, 2023, and will last for two years. The purpose of the Act to to help curb the high prices of housing in Canada.

There are a few exemptions for temporary residents to buy houses. Some study permit holders and work permit holders can purchase but only under strict conditions— and in fact many people suggest that by the time they meet the conditions, many will already have become permanent residents. Penalties to buyers, lawyers, notaries and realtors involved with the sale of real estate to foreign buyers can be as high as $10,000.

What is missed here is that these "foreign buyers" are not all buying to invest, and leaving properties empty while they stay overseas. They are buyers who immigrate to Canada, and buy to live, and to contribute to Canada.

What should I do if I am a non-Canadian and need somewhere to live in Winnipeg?

I have two recommendations: the first is to buy a resale home before December 31st. Possession can be sometime next year. The second option is to enter into an agreement to build a new home before December 31st, which only requires a small percentage of cash as a deposit; the mortgage and the rest of the payment are needed at the time of possession, which is usually 8-10 months away.

If non-Canadians have not purchased a home before the end of 2022, they will have no choice but to rent for two years, or until the ban is lifted.

If you have questions, or would like my assistance with buying a home in Winnipeg, please contact me right away at 204-995-7355.