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The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “foreign buyer ban”) restricts non-Canadians from purchasing residential property in Canada; it has been in force since January 1, 2023 and has been extended to January 1, 2027.
The Act restricts purchases of residential property by non-Canadians — that is, people and entities who aren’t Canadian citizens or permanent residents, with the ban’s scope further defined in its regulations. The Act and its regulations also set out specific exempt categories; because those exemptions are detailed and can change, they should always be confirmed against the current Act and regulations rather than assumed.
For a mortgage agent, broker, associate, or courtier hypothécaire, the practical relevance is early: a client’s citizenship or residency status needs to be understood before an offer is written, since it can affect whether a purchase is permitted at all, and it can interact with other buyer-side rules like the Underused Housing Tax or a new-to-Canada mortgage program.
In force since January 1, 2023: under the federal Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Extended to January 1, 2027: the ban's current timeline, per the federal government.
Exemptions exist: the Act and its regulations set out specific exempt categories — confirm current eligibility against the Act itself rather than general assumptions.
Distinct from the Underused Housing Tax: the ban restricts purchases outright; the Underused Housing Tax is a separate annual tax on certain owners.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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